US dollar traded sharply lower recently against a basket of currencies as the recent economic releases in the US missed the mark and ignited a correction phase in the US dollar in the short term.
US Federal Reserve Bank of Kansas City, which is a quarterly Survey of Manufacturers and provides information on current manufacturing activity in the Tenth District came in at -2 in April 2015.
Japanese Corporate Service Price Index (CSPI), which helps in measuring the prices of services traded among companies released by the Bank of Japan registered a reading of 3.2% in March 2015, compared to the same month a year ago whereas the last increase was of 3.3%.
Japanese All Industry Activity Index highlighting the monthly change in overall production by all industries of the Japanese economy released by the Ministry of Economy, Trade and Industry will be released later.
Today in the Euro Zone, the German business sentiment index will be released by the CESifo Group, which is expected to increase from the last reading of 107.9 to 108.45 in April 2015.
The US dollar struggled a lot recently during the past couple of sessions against many major currencies including the Japanese yen. There is a bullish trend line on the 4-hour chart of the USDJPY pair, which is helping buyers to hold the ground. However, the pair remains at risk of more downsides in the near term and a break below the same might call for more losses. There is a positive sign to note from the chart i.e. the fact that the 200 and 100 simple moving averages are sitting just below the trend line. Let us see if the pair can move higher from the current level or not.
Intraday Support Level – 119.20
Intraday Resistance Level – 120.00
Overall, as long as the pair is above the highlighted trend line it might continue moving higher.
A break below the same could ignite more losses in the short term.
If the USDJPY pair moves higher from the current levels, then the 120.00 swing area might act as a major barrier for the US dollar buyers.
The Euro managed to gain a lot of ground against the Japanese yen after trading towards the 126.00 level. However, the pair is currently struggling around the 200 simple moving average (SMA) – 4H, which is around a bearish trend line. So, there is a major hurdle around the 129.55 level where buyers are facing a lot of resistance. There is a chance of a move back lower in the near term, which might find support around the 100 SMA (4H). The 4H RSI is above the 50 level, which is a positive sign.
Intraday Support Level – 128.60
Intraday Resistance Level – 129.50
Buying dips around the 100 SMA (4H) looks like a good option.
A break below the same might call for more losses.
On the upside, a break above the highlighted trend line might call for a run towards the 130.00 level.
Think Global - Act Local
Simon Furman is one of the best financial analyst with 27 years of trading experience
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.
Taking into account today’s volatile economy GTCM endeavors to provide its clients with a secure trading environment and strong financial services. We aim to establish a strong relationship with our customers by providing them with ease, transparency and accountability on all their account activities
Banc De Binary is home to the 21st century investor. Founded in the wake of the 2008 financial crisis, we set out to provide the simplest, most profitable trading solutions, and have built a following among customers in over 80 countries worldwide. Today, we provide access to the financial markets via our online binary options platform to 250,000 account holders. As a World Finance listed company and multi award-winning firm, we are proud to be able to guarantee a safe and risk-controlled environment for all our valued clients.
HY Markets is a market leader in providing retail and institutional investors with access to foreign exchange and other capital markets. With HY Markets you can trade forex, metals such as gold and silver, energy products such as US oil and natural gas, commodities, indices as well as stocks, all from a single integrated account.
Ikon Markets are an online trading service provider affiliated to the Ikon Group, an acclaimed global network for online financial trading. Prior to the introduction of our online segment. We, at Ikon, have had many years of experience in providing financial trading services to institutional investors, such as banks, large financial institutions and mutual fund companies.