EURUSD Has Potential For A Correction

EURUSD Has Potential For A Correction

By: Darryl Frankfort | Where To Trade | On:17-03-2015 12:12
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Key Highlights

  • US dollar traded a touch lower against most major currencies raising the hope for a correction in the EURUSD pair, which has a potential for a larger move back up if the US dollar buyers step back.

  • In the US, the Net Long-Term TIC flows i.e. Treasury International Capital representing in and out flows of financial resources in the United States released by the US Department of Treasury registered a reading of $-27.2B in January 2015, compared to the preceding month and last reading was of $35.4B.

  • US total Net TIC Flows was also released, which came in at $88.3B in January, compared to last $-174.8B.

  • In Australia, the minutes of the Reserve Bank of Australia meetings was released, which caused action the Aussie dollar against the US dollar and the New Zealand dollar.

  • Japanese official monetary policy statement will be released by the Policy Board of the Bank of Japan, which has the potential to cause a lot of moves in the Japanese yen.

  • Euro zone consumer price index is a major release scheduled during the London session today, which is expected to post an increase of 0.6% in February 2015, compared to the preceding month.

EURUSD

The EURUSD pair showed some signs of life when it corrected higher recently after finding a strong buying interest around the 1.0450 level. There was a major bearish trend line formed on the 4-hour chart, which was partially breached by the Euro buyers. Let us see how the pair trades in the near term and whether it can move higher or not. Initial hurdle is around the 23.6% fib retracement level of the last leg from the 1.1214 high to 1.0465 low. Any further strength can be considered as a positive sign, which could lift the market sentiment in the favor of the Euro in the short term.

Intraday Support Level – 1.0500

Intraday Resistance Level – 1.0620

  • Overall, as long as the pair is above the broken trend line it might continue trading higher.

  • A break above the 1.0620 level could ignite more gains moving ahead.

If the EURUSD pair moves back lower from the current levels, then a test of 1.0500 support area is possible in the near term, followed by the last low of 1.0460.

GBPJPY

The British pound fell sharply lower against the Japanese yen recently. There was a bullish trend line on the 4-hour chart, which was breached by sellers. The GBPJPY pair is now trading well below the 200 and 100 simple moving averages (4H). It is currently managing to find buyers around the 178.00 level. Let us see how far the pair can correct higher in the short term. Initial resistance is around 23.6% fib level of the last drop from 184.97.

Intraday Support Level – 178.80

Intraday Resistance Level – 180.00

  • Buying dips around the 178.80 level look like a good option.

  • A break below the same might call for more losses moving ahead.

On the upside, the GBPJPY pair might face hurdle around 180.00.

Yen Looks Set For More Losses

Yen Looks Set For More Losses

By: Simon Furman | Where To Trade | On:01-05-2015 11:16

Japanese yen tumbled against most currencies including the Euro and the US dollar, and it looks like it might continue to head lower in the near term.

AUDUSD Remains Buy On Dips

AUDUSD Remains Buy On Dips

By: Ben Myers | Where To Trade | On:30-04-2015 11:13

Aussie dollar was one of the best performing currencies as it traded higher against most major currencies, and looks set for more gains in the short term.

USDCHF At Risk Of A Major Break

USDCHF At Risk Of A Major Break

By: Darryl Frankfort | Where To Trade | On:29-04-2015 11:09

US dollar dived sharply against the Swiss franc and other major currencies, as sellers managed to gain strength exposing a major break in the USDCHF pair in the near term.

US Dollar Poised For Further Rise Versus Yen

US Dollar Poised For Further Rise Versus Yen

By: James Ansher | Where To Trade | On:28-04-2015 10:58

Japanese yen once again failed to hold the ground and lost all the gains against currencies like the US Dollar and the Euro, which exposes it for more declines in the near future.

NZDUSD Gains Favored As It Holds Key Lows

NZDUSD Gains Favored As It Holds Key Lows

By: Oliver Miller | Where To Trade | On:27-04-2015 10:50

New Zealand dollar traded lower this past week after solid gains against the US dollar, but found support around and important area which means there is a chance of recovery in the near term.

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