Month: October 2010

By James McKee

As the United States begins to consider stepping up its presence in the export world it pledges not to get into “currency wars” with other major nations as things grow worse in the world economy. The incentive to devalue currency of course lies in other countries being encouraged to purchase your goods since they are now cheaper to purchase. This will become more and more of a temptation for the US and other fully developed countries if the economic downtrend continues. As it stands now the US has pledged not to do this, but as things continue to worsen I wouldn’t take anything off the table.

As traders we must stay up to date at all times with announcements from the Federal Reserve and other centralized banks throughout the world such as the Bank Of England and the Bank Of Japan. Its has also been a rather typical trend for the US to do everything it claims it won’t, bearing this in mind don’t be surprised if the Federal Reserve and the United States Treasury decide to go ahead and devalue currency anyway. There has been talk of the US entering the export industry once again, if this does occur we are going to be faced with the very real temptation of devaluing our own currency to encourage a higher rate of export sales.

It is important to note however that the USD and Chinese Yuan are currently stapled to one another and so if the Chinese do decide to begin spending any of their enormous surplus then the dollar’s value would rise. This would of course decrease the United States’ ability export at a rate that is desirable, and probably undermine the whole process to a large extent. These things all point to a sign of severe change for the US dollar as well as “smaller” currencies. While the G20 was very informative much of that information remains to be assessed in terms of just what it stands to mean in the long run.

Approach the USD and all major currencies with extreme caution in the forex exchange in the coming weeks as these countries begin to implement this year’s IMF strategy. As always, happy trading!

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.

By Jared Levy, Editor, Smart Investing Daily, taipanpublishinggroup.com

I spend most mornings trolling my wheelhouse of sites for charts that look interesting, giant cup of coffee in hand.

I tend to look over a large spread of different sectors, to really get a good lay of the land. This morning I found a chart that just can’t be ignored… and what I liked about it even more than its technicals was where it’s based.

Sure, this has been a good week for U.S. companies, with GOOG, NFLX, UPS and more all reporting blowout numbers and the inflate-a-rally continuing to drive multinational companies like PEP, KO and MCD to all-time highs. (Hopefully, you read my article and positioned yourself appropriately.)

Our guest editor, Kent Lucas, wrote this week about China and how it is vastly misunderstood. In his opinion, which I share, the bulk of Chinese investments are viewed as extremely risky. I believe it’s unfair to make any blanket assumptions without looking deeper into the numbers. Of course, risk is relative in investing and any stock carries with it unique risks that you must understand.

So, in the spirit of reducing risk by diversification and looking for a way for you to invest in China, I found an exceptional ETF that has outperformed the incredibly popular FXI (China 25 index), the GXC (S&P China Index) and the FCHI (China HK listed) over the past year. In fact, this ETF is up more than 20% YTD, while the FXI is only up about 10%.

Why I Like This Fund

The MSCI Hong Kong Index Fund (EWH:NYSE) provides its investors with returns based on the performance of the MSCI Hong Kong Index, the index that accounts for about 85% of the total market cap in the Honk Kong equity market. Keep in mind that many of the companies listed in the MSCI are tradable here in the U.S., but most only on the “pink sheets,” which can be illiquid and hard/expensive to trade.

Since the fund began in 1996, it has returned an average of about 5.4% to investors, but has really taken off as of late.

The index contains a blend of all types of companies with the bulk of them being financial firms (over 60% as of Sept. 30, 2010). The next largest holdings are in utilities (13%), consumer discretionary (12.5%) and industrials (11.4%).

If you believe in China’s continued growth story like I do (and you should!) and are looking for an efficient, diversified vehicle to get you there, the EWH offers a relatively lost-cost, low-stock-price way to do it.

(Investing doesn’t have to be complicated. Sign up for Smart Investing Daily and let me and my fellow editor Jared Levy simplify the market for you with our easy-to-understand articles.)

Longer-Term Technicals

I wanted to take a step back for a second and look at the weekly chart of the EWH, because I believe the story here could be longer than a week or two.

From the late 2008 high of $24.29 to the low of $8.36 (that is the widest, most recent range), you can see the Fibonacci retracement line. I think this recent rally is sustainable with a minor retracement moving the ETF down to the $18.40 price level, which is 61.8% of the move that I indicated. There is much stronger support down at $16.40, which can be your absolute stop level if $16.40 is violated with bearish momentum.

There is upside resistance at around $20 and again at $21 and then the high at $24, so if you are in the stock and approaching those levels, you can sell an at-the-money covered call to hedge yourself against “stickiness” at those levels or a pullback.

EWH Weekly Chart

View Larger Chart
Source: Freestockcharts.com

In the Short Term

From a daily chart perspective (below chart), I feel the index has had a tremendous run, but has stayed within the confines of its “normal” trading patterns. It is most likely that the index will see a small pullback, like what we saw yesterday, and provide us with an entry right around the 20-day moving average, which is right around the $18.60 level, 20 cents above the Fib retracement level I was looking at. I think that area looks to be the preferred entry point.

If you are long, monitor the 50-day moving average for support. You can maintain the position as long as EWH maintains that level and the $16.40 level I discussed earlier; if it breaches either, that may be time to exit as it could be a change in trend. Trading breakouts can be risky, but very profitable at the same time. EWH did break out of its prior trading range in mid-September, but in my opinion, this sideways “channeling” should be the pause the index needs for the next leg up.

EWH Daily Chart

View Larger Chart
Source: Freestockcharts.com

Summary

The bottom line is that the EWH can provide an excellent diversified vehicle if you want to put some money to work in China with exposure to many different hot sectors like finance, the evolving (and spending) consumer and industry.

The breakout chart that we see above is an indication of its recent and hopefully continued strength as long as those simple technical rules are followed. EWH is a great long-term buy.

P.S. I’d certainly classify myself as a “chart guy”… but my colleague Adam Lass is a bona-fide chart guru. He developed a proprietary charting system that just celebrated its 10th anniversary — and in those 10 years has pumped out mind-boggling gains like 787%… 403%… 507%… 493%… and many, many more! If you’re a “chart guy” — or looking to become one — check Adam out.

Gold Went Up 76%… But This Made 975%

In every gold bull market of the past century, this investment class has outperformed physical gold. Over the past two years, one member of this class made 12 times more than physical gold.

Find out what about this gold investment.

Don’t forget to follow us on Facebook and Twitter for the latest in financial market news, investment commentary and exclusive special promotions.

About the Author

Jared Levy is Co-Editor of Smart Investing Daily, a free e-letter dedicated to guiding investors through the world of finance in order to make smart investing decisions. His passion is teaching the public how to successfully trade and invest while keeping risk low.

Jared has spent the past 15 years of his career in the finance and options industry, working as a retail money manager, a floor specialist for Fortune 1000 companies, and most recently a senior derivatives strategist. He was one of the Philadelphia Stock Exchange’s youngest-ever members to become a market maker on three major U.S. exchanges.

He has been featured in several industry publications and won an Emmy for his daily video “Trader Cast.” Jared serves as a CNBC Fast Money contributor and has appeared on Bloomberg, Fox Business, CNN Radio, Wall Street Journal radio and is regularly quoted by Reuters, The Wall Street Journal and Yahoo! Finance, among other publications.

By James McKee

In the recent G20 summit it was decided that smaller countries would have a say in what occurs with the regard to the International Monetary Fund. Emerging economies such as India are fairing better than those of developed western nations. Among the large developments in the G20 was the urging of China to allow its currency to appreciate, but their was opposition to this idea because more expensive Chinese imports would make it difficult for emerging countries to purchase their goods. If China’s money were to appreciate it would also cause the value of the USD to rise since the two are stapled to one another.

While the Indian Finance Minister feels that the IMF is making an effort to include emerging nations in its decision making process he feels that they have a long way to go. Developed nations still account for the vast majority of voting power and decision making with regard to the IMF and as emerging nations have more and more of an impact on the world’s economies they are indeed having a say in what occurs. Whether or not this is occurring fast enough to accommodate will be left to history to decide.

The current attitude overall at the G20 summit was an optimistic one, speaking of the need for all countries to take part in the economic recovery of the world. It is being said that China is not doing their part because they are holding on to their currency reserves and not spending it; this maintains the low-cost of their products while their producers lose money. For a long time China has been seen as an un-cooperative partner with regard to the recovery of the world economy for this reason.

The G20 and its fallout will have numerous repercussions for the Forex exchange including a USD that may actually continue to rise. A great deal of what comes out of the G20 summit relies solely on what China decides to do with the Yuan. If they begin to spend more money it will rise, if they continue to hold out the Yuan will remain low. For China’s own prosperity the Yuan should stay low, however with mounting pressure from other nations China may actually allow it to rise, only time will tell.

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.

By Dan Eduard – EUR/SEK saw a massive spike of almost 1500 pips on Tuesday, following comments from Sweden’s central bank regarding future interest rate hikes. While the pair is still moving up, technical indicators are showing that a downward correction is likely to occur in the near future. Krona traders will want to pay close attention to the pair

We will be looking at the daily chart for EUR/SEK provided by Forexyard. The technical indicators being used are the Williams Percent Range, Relative Strength Index (RSI) and MACD.

1. The Williams Percent Range is currently right above the -20 level. This is typically seen as a sign that the pair is in overbought territory and may correct itself in the near future. Should the indicator continue to move up, the bigger the chance that a reversal will take place.

2. The Relative Strength Index has not yet approached overbought territory, but appears likely to approach that area shortly. Currently the RSI is right around the 60 level. If traders see the indicator go above 70, it can be taken as a sign that downward pressure exists for the pair.

3. Finally, the MACD has formed a bearish cross, indicating that a reversal is likely to take place in the near future. Traders will want to watch out for a sudden correction for this pair, as significant profits can be made when the downward breach occurs.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By Anton Eljwizat – The DAX 30 Index has recorded much bullish behavior in the past several days. However, the technical data indicates that this trend may reverse anytime soon. For example, as I demonstrate below, the 8-hour chart signals that a bearish reversal is imminent. This might be a good opportunity for CFD traders to enter the trend at a very early stage and a great entry price.

• Below is the 8-hour chart for DAX 30 Index by ForexYard.

• The technical indicators used are the Slow Stochastic, RSI and Williams Percent Range.

• Point 1: There is a “doji” candlestick formed in the chart, indicating that a reversal should take place.

• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.

• Point 3: The RSI signals that the price of this pair currently floats in the over-bought territory, suggesting downward pressure.

• Point 4: Williams Percent Range also supports the downward direction.

DAX 30 Index 8-Hour Chart

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By GCI Forex Research

Fundamental Outlook at 0800 GMT (EDT + 0400)

USD

The dollar was largely range-bound throughout a quiet Asia session, with little news or economic data to act as drivers. Asia equity performance has been mixed, although the S&P 500 closed fractionally ahead. EURUSD traded 1.3908-1.3993, USDJPY 80.67-80.89. Kansas City Fed President Hoenig again called for Fed rate hikes and claimed that embarking on another round of QE would be a “dangerous gamble”. New York Fed President Dudley said that he “would put very little weight” on what the market has priced in for the scale of further easing – the FOMC will decide what is best to satisfy its mandate. He said that if the Fed sticks to its mandate, then the dollar will look after itself. Existing home sales rose more than expected in September at 10.0% and the upturn in contract closings, reflected in the data, appears roughly consistent with the earlier improvements in mortgage applications and in initial sales contract signings in the pending home sales index. Although the sales pace was still weak on a historical basis, sales appear to have bottomed. The current activity index in the Dallas Fed manufacturing survey rose to 2.6 in October from -17.7 in September versus consensus -8.0. Other regional surveys had previously shown improvement or at least a fading of weakness. S&P/Case Shiller, Conference Board consumer confidence and the Richmond Fed manufacturing survey are due.
EUR

ECB Governing Council Member Weber said he saw no point in commenting on euro levels though he was critical of excessive currency volatility. Weber said the quicker the European interbank market recovers, the quicker the ECB should be able to withdraw nonconventional measures and return to a more normal monetary policy. He also said current rates are appropriate but the ECB should not keep rates too low for too long.
At 24.4% y/y (cons. 17.1%, prev. 11.2%) and 5.3% m/m, Eurozone industrial new orders for August were well above expectations. The trend in new orders suggests that industrial activity may continue to hold up. The August numbers benefited from a lower euro but it remains to be seen how recent appreciation will affect external demand.
EURUSD long positioning remains near this year’s extremes and we are still cautious on chasing significant upside above 1.40.
JPY

Rhetoric levels from Japanese officials escalated over the past 24 hours, despite the G20 pledge to “refrain from competitive devaluation”. Finance Minister Noda said Monday’s FX moves were somewhat one-sided, a term he used ahead of the Sept 15 act of intervention. He also noted that the G20 felt excessive FX moves were undesirable, a clear indication that he sees justification in the text of the communiqu? for further intervention. Noda said he is watching FX markets with great interest and is ready to take decisive action when needed.
Economy Minister Kaieda warned that “excessive intervention should be avoided but the government can be allowed to do so if currency moves are volatile and one-sided”. Deputy Finance Minister Igarashi also suggested that FX intervention remains very much an option and said: “A surprise move would probably be effective to some extent. We can’t make an announcement in advance that we will act, but, on the other hand, we can’t say that we won’t act either.” He had earlier said that any intervention would be aimed at restraining excessive currency swings and the latest G20 language appeared to give them the green light on that basis.
GBP

The advance estimate of Q3 GDP is expected lower at consensus 0.4% q/q (UBSe 0.5%) after 1.2% previously. But on a y/y basis, we expect to see an increase from the previous reading. We remain cautious on sterling given the government’s recently announced spending cuts.

TECHNICAL OUTLOOK
USDJPY targets 79.75.
EURUSD BULLISH Remains constructive above 1.3637/1.3559 support zone, trigger to bear trend. Resistance at 1.4159 ahead of 1.4373.
USDJPY BEARISH The pair targets 79.75 with scope for 77.91 next. Resistance at 81.49 yesterday’s high.
GBPUSD BULLISH Holds above 1.5606 keeping our focus on the upside. Resistance at 1.5942 ahead of 1.6107.
USDCHF BEARISH Recovery has scope for 0.9918 breakout low. Next big support below 0.9463 at 0.9225.
AUDUSD BULLISH Upside potential targets 1.0004; move above the level would expose 1.0166. Support defined at 0.9662 ahead of 0.9542 reaction low.
USDCAD BEARISH Break of 1.0162 brings focus back to the downside with next support at 0.9981. Tough resistance at 1.0380/1.0407 area.
EURCHF BULLISH Violation of 1.3665 leaves next resistance at 1.3924. Near-term support at 1.3456 ahead of 1.3265.
EURGBP BULLISH Momentum is positive; expect extension of gains towards 0.9039 and 0.9150 next. Near-term support defined at 0.8773.
EURJPY BULLISH Need a break below 111.56 to trigger bear trend. Upside capped at 115.68.

Forex Daily Market Commentary provided by GCI Financial Ltd.

GCI Financial Ltd (”GCI”) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (”Forex”) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (”CFDs”) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.

DISCLAIMER: GCI’s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

By Anton Eljwizat – The US dollar traded lower yesterday contrary to the positive data releases coming from the American housing sector. The greenback pushed its way back to 15-year lows against the Japanese yen, and saw declines against the Aussie dollar and euro as well. Traders are anticipating a monetary easing policy by the Fed and this has pressure pushing against any positive news from the US.

Here is a roundup of the events to watch for today:

8:30 GMT: GBP – Prelim GDP q/q

British GDP has been steady for the past few months, but growth remains slow and inflation persists in being a concern for British policy-makers. Today’s figures should show positive growth in this quarter’s GDP, but may indicate a general slow-down. The pound is likely to see some downward movement if the figure comes out as low as forecasts, but should remain bullish against the US dollar due to speculation of a Fed monetary move in the near future.

14:00 GMT: USD – CB Consumer Confidence

The Conference Board (CB) is set to publish its consumer confidence figures for October today. This figure has been in a gradual decline for the past few months, but expectations are for a minor increase this month. If the figures come out much better than expected, then the USD may get a respite from its latest downturn. Traders should bear in mind, however, that speculation still has the greenback bearish in expectation of a money printing policy being enacted by the Fed after their next policy meeting on November 2-3.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

Regardless of an agreement at the weekend’s G20 summit to avoid a currency devaluation war, investors have begun to price in the expectation of an asset purchasing facility by the Fed following their upcoming policy meeting on November 2-3. Traders have been forecasting such a move for some time, and it appears that recent statements at the G20 hint at an upcoming QE move by the Fed, which has put strong bearish pressure on the greenback.

Economic News

USD – US Dollar Lower Amid Positive Data; Forecasts of Impending QE Move

The US dollar was hard pressed to make gains yesterday amid highly positive figures from the housing sector of the US economy. Existing home sales jumped to 4.53M, beating expectations for a gain of only 4.29M. The figures appear to have added momentum to estimates of consumer confidence, but were countered by speculation of a quantitative easing move being anticipated for early November.

Against the euro, the USD was trading lower at a price of 1.4075 from 1.3960 early in the trading day. As of this morning, the price has come down somewhat, trading at 1.3946 in mid-Asian trading. Against the Japanese yen, the buck fell back towards its 15-year low mark.

Regardless of an agreement at the weekend’s G20 summit to avoid a currency devaluation war, investors have begun to price in the expectation of an asset purchasing facility by the Fed following their upcoming policy meeting on November 2-3. Traders have been forecasting such a move for some time, and it appears that recent statements at the G20 hint at an upcoming QE move by the Fed, which has put strong bearish pressure on the greenback.

EUR – Euro Benefits from G20 Summit and Surge in Industrial Orders

Agreements at the weekend’s G20 summit to curb any attempts at a devaluation war have helped the euro in short-term trading. Investors still anticipate a move by the Fed to lower the US dollar and this has pushed many traders into the higher-yielding assets, such as the EUR and AUD. The surge in commodity prices, brought on by a lower dollar, assisted in the Australian dollar’s recent rise.

The EUR/USD was trading higher at 1.4075, in late trading before coming down somewhat in today’s early hours. The EUR/GBP is trading at 0.8869, while the EUR/JPY trades at 112.65, up from 112.40 yesterday.

Adding further bullishness to the EUR’s recent movement was a sharp jump in industrial new orders in the euro zone. Forecasts yesterday were for an increase of 2.1%, from a previous decline of 1.8%. However, the figure showed a surge of 5.3% in industrial orders, highlighting the recent growth experienced by the euro zone. If today’s German GfK consumer climate report shows improvement, as expected, the EUR may continue to gain modestly against its primary currency rivals.

JPY – USD/JPY Could See Small Boost from CB Confidence Figures

The Japanese yen made surprising gains against the US dollar in yesterday’s trading as investors ditched the greenback for other currencies on the view that the Fed will intervene in the currency market soon. The JPY did not see similar gains against its other rivals. The EUR/JPY and EUR/GBP both appeared to flatten a bit, as did the CHF/JPY.

With today’s economic news focused on the US and Europe, the Japanese currency will likely base its short-term value today on its primary counterpart, the USD. Expectations for the US consumer confidence report from the Conference Board may show an increase in individual sentiment. Overall pressure appears to be down on the US currency, but a positive read could give the buck a modest boost against the yen.

Crude Oil – Oil Prices Stronger on Weakened USD

Crude Oil prices experienced steady growth over the last 24 hours as the value of the US dollar sank. Expectations among analysts are for a move by the Fed to devalue its currency through an asset purchasing program, in essence releasing more dollars into the market. Commodity prices have gained support as a result.

The price of a barrel of oil climbed to $82.57 yesterday, and looks to be continuing higher as of this morning. It appears analysts are expecting a rise in commodity prices to coincide with the greenback’s fall, leading up to the day of the announced monetary easing program by the Fed. The boost in oil prices has helped contain some of inflationary concerns in countries like Britain, but don’t appear to be enough to combat other growth concerns in many of the more developing countries.

Technical News

EUR/USD

The daily and weekly RSI both show the price descending out of the over-bought region, suggesting that momentum may be shifting directions. A recent bearish cross on the weekly Stochastic (slow), and a doji candlestick formation on the weekly chart both support this notion. When the price begins to shift downward, going short may become a smart move.

GBP/USD

This pair looks to have flattened out over the past few trading days. The mild uptrend remains dominant, and no indicators suggest a change in direction. This pair appears to be consolidating towards the 1.6000 price level, but subsequent direction could go either way. Going long on the pair up to that target could prove wise, but traders should proceed with caution beyond that point.

USD/JPY

This pair’s long, sustained drop has pushed almost every indicator into forecasting a reversal. Contrary to this technical analysis, however, is the fact that the price remains bearish. Traders would be wise to check the fundamental side of this currency pair since technical analysis appears less relevant in these conditions.

USD/CHF

Momentum for this pair appears to be shifting in an upward direction. A fresh bullish cross on the weekly Stochastic (slow) suggests strong upward pressure is mounting. A dramatic upturn in the daily RSI supports this notion. Going long could turn out to be a wise tactic.

The Wild Card

AUD/JPY

This pair has flattened and consolidated at the 80.00 price mark and appears poised for a downturn. A triple-doji candlestick formation on the weekly chart highlights mounting downward pressure. Forex traders should also note the recent bearish cross on the weekly Stochastic (slow). It appears going short on this pair, and at the peak of a potentially lasting downturn, is becoming the preferred position for this currency duo.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

EUR/USD

Daily graph: http://www.real-forex.com/charts-daily/261010/EUR_DAILY_261010.JPG

The pair started to increase after a few downtrend oriented sessions. However, a vain breach of the resistance 1.4011 occurred and the pair started to decrease back. By the end of the session of the 25-10-2010, the pair was at the lowest point of the reached for this session.

This fact may suggest that the pair will continue to decrease during today’s session, creating an opportunity to go “Short”. In order to confirm this opportunity, it should be better to wait until a decreasing configuration will be identified on a One-Hour graph.

Potential trade

One-Hour graph: http://www.real-forex.com/charts-daily/261010/EUR_1H_261010.JPG

The required configuration will be created once the resistance of 1.3950 crossed. After the cross, we suggest entering the following orders:

• “Limit” order on “Short” position 10 pips below the resistance mentioned previously, meaning: 1.3940.
• “Stop loss” 50 pips above the resistance: 1.3990
• “Take Profit” on the following support appearing on one-hour graph, which is: 1.3893

AUD/JPY

Daily graph: http://www.real-forex.com/charts-daily/261010/AUD_JPY_DAILY_261010.JPG

After several weeks without any specific orientation, the pair finally crossed the support of 80.30 downward. Following 4 bearish sessions, 3 bullish candles occurred but were totally eaten by the previous decreasing candles. This fact in addition to the four decreasing sessions emphasizes the strength of the bears against the bulls.

A vain breach of the new resistance of 80.30 occurred.  Eventually, the pair will continue to decrease today and maybe more. In such a case, the next destination will be the following support on the daily graph: 78.67

Have a profitable day!

Real Forex team.

By CountingPips.com

Important News Releases Today.

01:00 United States Fed Thomas Hoenig speaks on economy
01:00 United Kingdom inflation report
01:30 Australia NAB business confidence
06:00 Switzerland UBS consumption indicator
06:00 Eurozone German consumer confidence
08:30 United Kingdom British GDP (third quarter)
13:00 United States S&P/Case Shiller index
14:00 United States Consumer confidence
14:00 United States Richmond Fed Manufacturing
21:00 United States ABC consumer confidence
21:30 United States Fed Dudley speaks

See full Calendar here