EURUSD’s downward movement from 1.3711 extends to as low as 1.2888. Key resistance is at 1.3161, as long as this level holds, the downtrend could be expected to continue, and next target would be at 1.2800 area, only break above 1.3161 resistance could signal completion of the downtrend.
USDJPY broke below the lower line of the price channel on 4-hour chart, and is now in consolidation of the uptrend from 82.11. Range trading between 86.82 and 89.67 would likely be seen in a couple of days
Wednesday FOREX Short-Term Market Analysis – After touching the lower line of the price channel on 4-hour chart, USDJPY rebounds from 86.82, suggesting that a cycle bottom is being formed. Further rise could be expected….
Monday January 7th Daily FOREX Market Analysis
AUDUSD has formed a cycle top at 1.0527 on 4-hour chart. Pullback to 1.0420 area would likely be seen. Key support is at 1.0344, as long as this level holds, the fall could be treated as correction of the uptrend from 1.0344, another rise to test 1.0585 resistance is still possible
Below are Monday’s trending equities ahead of the opening bell.
We initially sold EURUSD at 1.3121 and added to the position at 1.3026. The pair sold off after forming a bearish Harami candlestick pattern and we have subsequently revised the stop-loss and target downward to lock in some gains
JP Morgan losses seriously diminish credibility in banking sector Political saga in Eurozone continues to shake investor confidence China economic data disappoints and weighs further on risk correlated assets Commodity bloc and emerging market FX exposed German; UK inflation mixed The intense risk-off price action that we saw over the past several sessions looked like it might be poised for reprieve into North America on Thursday, before markets got wind
Most of the major currency pairs continue to show significant correlations with the MSCI World Stock Index, suggesting that broad-based risk appetite trends remain dominant as drivers of price action. This puts thematic macro-level concerns – specifically, the durability of the US recovery and its ability to offset headwinds from Europe and China facing global growth – squarely at the forefront. The US economic calendar is relatively quiet, with headline event risk clustered at the end of the week as PPI and UofM Consumer Confidence readings cross the wires on Friday. This puts the onus on evaluating the extent of downward pressure.
The ongoing political turmoil in Europe continues to shake the markets, with the inability for Greece to form a government now fueling speculation that the country might soon exit the Eurozone. Although an exit by Greece would have only a minimal impact on the broader economy, given the country’s size, fears of contagion seem to be the bigger problem right now, as investors start to price in the impact this will have on larger economies like Spain and Italy.
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