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[StraussX]

09.11 #analysisi #forex #socialtrading

The #EURUSD has been fluctuating between two converging trend-lines over the past one week or so, forming a symmetrical triangle on hourly charts. Wednesday's early uptick quickly ran out of the steam, rather met with some fresh supply near the triangle resistance.


The #intraday #pullback has now dragged the pair back below 100-hour SMA, the intraday bias might have shifted in favor of bearish traders and sets the stage for a move towards testing the triangle support, currently near the 1.1020 region, which is followed by 200-hour EMA.


Due to drifting into the bearish territory on the 1-hourly chart, failure to defend the mentioned support levels might indicate the resumption of the prior/well-established bearish trend.


The pair might then turn vulnerable to slide back towards challenging multi-year swing lows, around the 1.0925 area, before eventually sliding farther below the 1.0900 round figure mark towards testing its next major support near the 1.0835-30 region - levels now seen since May 2017.


On the other hand, the 1.1050 region might continue to attract some fresh #supply, which if cleared decisively should negate any near-term bearish bias and prompt some aggressive short-covering move and assist the pair to surpass last week's swing high resistance near the 1.1085 level.

 

[StraussX]

0912 #analysis #EURUSD #forex #socialtrading
#EURUSD pair came under some renewed selling pressure on Wednesday and tumbled back below the key 1.10 psychological mark, albeit managed to recover around 25-pips from daily lows. The shared currency took a sharp knock in reaction to the German growth downgrade by the #Kiel #Institute for the World Economy, now expected to contract by -0.3% in Q3 following -0.1% in the previous quarter and meeting the criteria of a ‘technical recession’.
#USD remained well supported by a strong follow-through pickup in the US Treasury bond yields amid growing optimism over the resumption of the #USChina trade talks. On the economic data front, the US Producer Price Index (PPI) for August bettered market expectations and remained supportive of the bid tone surrounding the greenback. The headline PPI came in to show a rise of 0.1% during the reported month while the core PPI, which excludes food and energy prices rose 0.3%.
#TradeTensions between the world's two largest economies eased further on Wednesday after the US President #Trump said that he will delay a planned tariff hike on Chinese goods by two weeks as a gesture of goodwill after Beijing exempted a range of American goods from its own tariffs. The market reaction, however, turned out to be rather muted, as investors seemed reluctant to place any aggressive bets ahead of Thursday's key event risk - the highly anticipated #ECB monetary policy decision.
The #ECB is widely expected to #lower #InterestRates further into the negative territory and also announce a new #QEprogram, though opinions on the stimulus package are divided and thus, increases the relevance of Thursday's rate decision. This will be followed by the post-meeting press conference, where comments by the ECB President Mario Draghi will further collaborate towards infusing volatility around the EUR crosses. From the US, the release of consumer inflation figures for the month of August might influence the USD price dynamics but seems more likely to be overshadowed by the post-ECB volatility.
Short-term #TechnicalAnalysis
From a technical perspective, the #EURUSD on Wednesday broke through a symmetrical triangle formation on hourly charts and confirmed a fresh bearish breakdown. However, the fact that the pair managed to defend the 1.10 handle on a closing basis warrant some caution before placing any aggressive bearish bets. The pair now seems to have stabilized around 200-hour SMA, just below the triangle support breakpoint near the 1.1025 region. Any subsequent up-move now seems to confront fresh supply near mid-1.1000s, resistance marked by 38.2% Fibo. level of the 1.1251-1.0926 downfall, above which a bout of short-covering now seems to assist the pair to surpass the recent swing higher - around the 1.1070-80 region - and test 61.8% Fibo. level resistance near the 1.1125-30 area en-route the next major hurdle near the 1.1175-80 region (100-day SMA).
On the flip side, sustained weakness below the 1.10 handle, leading to a subsequent slide through the overnight swing lows - around the 1.0985, might now turn the pair to fall back towards the multi-year swing lows - around the 1.0925 area before eventually dropping farther below the 1.0900 round figure mark towards testing its next major support near the 1.0835-30 region.

 

[StraussX]

#WeekAhead #forex #news #followme #socialtrading

Hey friends! Happy new week.

Here are the data highlights for this week:

(GMT+8)

Monday:

10:00 Chinese industrial production, fixed asset investment and retail sales



Tuesday:

09:30 RBA Meeting Minutes

17:00 German ZEW economic sentiment and

21:15 US industrial production


Wednesday

16:30 UK Consumer Price Index (YoY) (Aug)

20:30 Canada BoC CPI


Thursday:

02:00 US FOMC Economic Projections

02:00 US Fed's Monetary Policy Statement REPORT

02:00 US Fed Interest Rate Decision

02:30 US FOMC Press Conference SPEECH

06:45 AUD Gross Domestic Product (QoQ) (Q2)

09:30 AUD Employment Change s.a. (Aug)

09:30 AUD Unemployment Rate s.a. (Aug)

10:00 JPY BoJ Interest Rate Decision

10:00 JPY BoJ Monetary Policy Statement REPORT

14:00 JPY BoJ Press Conference SPEECH

19:00 UK BoE Asset Purchase Facility

19:00 UK BoE Interest Rate Decision

19:00 UK BoE MPC Vote Hike

19:00 UK Bank of England Minutes REPORT

19:00 UK BoE MPC Vote Cut

19:00 UK BoE MPC Vote Unchanged


Friday:

20:30 Canadian Retail Sales (MoM) (Jul)


#FederalReserve is expected to cut rate about 25-basis point. It would be a major shock if the Fed doesn’t deliver. But some, including Donald Trump, want more than just 25 basis points. In fact, the US President has called for “boneheads” Fed to cut rates to zero or lower in a tweet this week. Understandably, with US data not deteriorating as badly as, say, Germany, the Fed is reluctant to cut aggressively and rightly so. The risk therefore is that the Fed refuses to provide a dovish outlook for interest rates. In this potential scenario, a rate cut might only weigh on the dollar momentarily. With most other major central banks already being or turning dovish, the Fed will also need to be super dovish for the dollar to end its bullish trend. Otherwise, the greenback may find renewed bullish momentum, even if the Fed cuts by 25 basis points.



The #Swiss National Bank will have to say about the #ECB’s decision to resume bond buying, given the recent appreciation of the franc against the shared currency. The #BoJ is unlikely to respond to the #ECB’s resumption of bond buying. It may keep the current policy of controlling the yield curve. For one, the global economy hasn’t deteriorated too significantly to exacerbate deflationary pressures in the export-oriented Japanese economy. For another, the there’s only limited number of policy options left at the BoJ's disposal. Thus, cutting short-term interest rates further into the negative may be an option, but to be used on another occasion.

 

[StraussX]

#EURUSD #ANALYSIS #Forex #followme #socialtrading

The EUR/USD pair fails to hold on to recovery gains as it trades near 1.1070 ahead of the European session on Wednesday.


The US #IndustrialProduction and #CapacityUtilization failed to please the #USD buyers as better than forecast prints of the ZEW Economic Sentiment for Germany and the Eurozone gained major attention. Also adding to the pair’s strength was the market’s risk recovery after Saudi Arabian diplomats showed readiness to overcome the recent damages due to drone attack within few weeks. Furthermore, news of the New York #Fed injecting funds through repo market and trade-positive headlines concerning the US, China and Japan also tamed the earlier #risk-off momentum.


#Traders have been #cautious since the start of Wednesday with eyes on the US #FederalReserve’s monetary policy meeting announcements up from 18:00 GMT. However, fresh trade/political headlines help extend the latest risk-on. As a result, Asian stocks report gains and the US 10-year Treasury yield remain around 1.80% by the press time.


Considering the high probability of the US Federal Reserve’s 0.25% Fed #rate, investors will be less surprised unless the US central bank offers less/more or no rate change. As a result, details of the quarterly economic forecast, press conference by the Fed Chairman #Powell and Fed’s Monetary Policy Statement will be the key to predict near-term market moves. The European Central Bank (#ECB) has recently shown its dovish bias and hence any hawkish statement from the Federal Open Market Committee (#FOMC) could be harmful to the pair’s latest recovery.


On the economic calendar, final reading of August month Consumer Price Index (CPI) from the Eurozone and the US housing market numbers could offer intermediate moves ahead of the Fed decision.


#TechnicalAnalysis

Not only a falling trend-line since late-June, at 1.1090, but the 100-day exponential moving average (EMA) level of 1.1167 also could restrict pair’s near-term upside, which in-turn highlights 1.1100 and recent low surrounding 1.0925 as key supports.

 

[StraussX]

#WeekAhead #forex #news #followme #socialtrading

Hey friends! Happy new week.

Here are the data highlights for this week:

(GMT+8)

Monday:

15:30 German Markit PMI Composite (Sep)

15:30 German Markit Manufacturing PMI (Sep)

16:00 Eurozone Markit PMI Composite (Sep)

21:50 US Fed's Williams speech


Tuesday:

13:35 BoJ's Governor Kuroda speech

16:00 German Ifo Business Climate and US Consumer Confidence (CB)

17:55 RBA's Governor Lowe speech


Wednesday:

07:50 BoJ Monetary Policy Meeting Minutes

10:00 RBNZ Rate Statement REPORT

10:00 RBNZ Interest Rate Decision



Thursday:

20:30 US Final GDP


Friday:

07:30 Japan Tokyo CPI ex Fresh Food (YoY) (Sep)

20:30 US Nondefense Capital Goods Orders ex Aircraft (Aug)

20:30 US Core PCE Price Index; Core Durable Goods Orders, and Personal Spending and Income



Among next week’s data highlights, traders should watch closely: (1) Eurozone flash services and manufacturing PMIs, (2) RBNZ rate decisions and (3) US macro data released throughout the week.



Eurozone PMIs in focus

The #ECB restarted #QE and cut #InterestRates last week because of the Eurozone economy. The latest PMIs provide a leading indication of economic health. Businesses and their purchasing managers tend to react quickly to changing market conditions. If the PMIs – especially in the manufacturing sector – continue to paint a bleak picture, then the single currency could come under renewed pressure in early next week. The #EURUSD bulls huffed and puffed this week, but macro concerns kept a lid on the exchange rate. With the Fed turning out to be less dovish than expected, the path of least resistance remains to the downside for this popular exchange rate.


#RBNZ likely to hold rates steady after the surprise 0.5% cut

The Reserve Bank of New Zealand is likely to hold interest rates unchanged at the historically-low rate of 1.0% after delivering a shock 50 basis point cut when a 25bp cut was expected in the previous meeting in August. In total, rates have been trimmed by the RBNZ by 75 basis points since May. Going forward, the rate setters at the central bank will likely sit on theirs hands and monitor the ongoing trade situation between the US and China. However, if the RBNZ makes any hints of forthcoming rate cuts then the NZD/USD could drop further lower after it hit a new 2019 low below the old low of 0.6270 on Friday to drop to 0.6255 at the time of this writing.


US-China Trade and #Brexit back to forefront

Deputy trade negotiators from the US and China resumed talks for the first time in almost two months this week. Their aim is to lay the groundwork for high-level talks in early October. Will they finally bridge their differences and find a way out of the trade war? As the high levels talks near, expect more tweets and tariff threats from US President Donald Trump, which could highs some risk-sensitive markets. However, for the time being, stock markets remain supported with US equity indices near record levels after a week of central bank bonanza, where the #message was loud and clear: global #InterestRates will remain at or near record #lows for the foreseeable future.


Meanwhile, hopes over an imminent Brexit breakthrough rose earlier this week and the GBP/USD shot above the 1.25 handle to trade 20 pips shy of 1.26 by early Friday session. However, it then sold off sharply after the Irish Foreign Minister Simon Coveney dashed those hopes by saying: “I think we need to be honest with people and say that we’re not close to that deal right now. But there is an intent I think by all sides to try and find a landing zone that everybody can live with here."


Followme, more than trade.

 

[StraussX]

#forex #followme #socialtrading

#AUDUSD has dropped into the red, having faced rejection at the 50-hour moving average line and could suffer a deeper drop if the Reserve Bank of Australia's (#RBA) governor Lowe reinforces the market expectation of a 25 basis point #RateCut on Oct. 1.


The currency pair is currently trading at session lows near 0.6765, representing 0.10% losses on the day. The pair had picked up a bid in the early Asian trading hours on comments by the US Treasury Secretary Steve Mnuchin, confirming the Chinese Vice Premier’s trade visit to the US in the next week


The upside, however, was capped by the 50-hour moving average near 0.6779. Therefore, a break above that average is needed invite stronger buying pressure and yield a notable bounce.


That, however, may not happen or could be short-lived if RBA's Lowe talks dovish. The central bank chief is scheduled to speak at 09:55 GMT.


Expectations for the RBA to cut the official interest rate to 75% on Oct. 1 surged following last week's worse than expected unemployment rate.


The ASX 30 day cash rates futures contracts are currently indicating a more than 70% chance of an RBA rate cut next week.


The AUD will likely rise well above the 50-hour MA if RBA's Lowe pushes back on expectations of an October rate cut. The currency pair, however, could drop below 0.67 if Lowe talks dovish, further boosting the probability of a 25 basis point rate cut on Oct. 1.

 

[StraussX]

#WeekAhead #forex #followme #socialtrading

Hey friends, this is the last day of September and the new day of this week.

Here is the highlight of this week forex news:

(GMT+8)


Monday:

09:45 Chinese manufacturing PMI

16:30 UK Gross Domestic Product (QoQ) (Q2)

20:00 German Harmonized Index of Consumer Prices (YoY) (Sep)


Tuesday:

12:30 RBA meeting

22:00 US Manufacturing PMI



Wednesday:

20:15 US ADP Employment report


Thursday:

22:00 US Non-Manufacturing PMI


Friday:

20:30 Average Hourly Earnings (YoY) (Sep)

20:30 US Nonfarm Payrolls (Sep)



In this week, the economic calendar is full of market-moving data and the Reserve Bank of Australia looks set to #CutRates one more time on Tuesday. For another, Q3 is officially ending on Monday, meaning there will be some portfolio rebalancing and window dressing operations from portfolio managers to provide extra volatility. All this is happening at a time when #Brexit talks are entering a crucial stage, while the #US-China trade talks are set to resume in early October.



With regards to Brexit, reports on Friday suggested that the EU believes negotiations have stalled and that the possibility of reaching an agreement in October is very limited. So, everything is up in the air and a lot could happen. So, volatility should remain elevated, which should be good news for traders.


By the time we get to Friday’s #NonfarmPayrolls report, a lot could have happened. But those employment figures will likely be the week’s main scheduled event. With jobs growth slowing over the past few months, another disappointing showing could increase bets on further rate cuts from the Fed and, in turn, derail the dollar’s rally. Or will there be a surprise pick-up in wage growth? If that’s the case, the USD could remain supported for a while yet.


Ahead of Friday’s US jobs report, we will have had the latest manufacturing PMIs from both China and the US. After a shocking German PMI this week, growth concerns could really come to the forefront should manufacturers at the world’s largest economies also paint a bleak picture. So, commodity dollars could be in for a wild ride.

 

[StraussX]

#forex #EURUSD #analysis #socialtrading
#EURUSD appears to have met a strong resistance in the mid-1.0900s for the time being amidst a recovery attempt in the Greenback.


The pair is exchanging gains with losses around the 1.0940/50 region in the European morning, looking to extend the positive streak for yet another session after YTD lows near 1.0880 on Tuesday.

Broad-based fears of a recession in the US economy in the next couple of years continue to fuel the selling pressure around the Dollar and the downtrend in US yields, all collaborating further with the corrective upside in spot.


The pair keeps the weekly recovery well and sound so far today, retaking levels well above the 1.09 barrier on the back of increasing selling pressure hitting the Greenback. The up move in the pair, however, is seen as corrective only, as the slowdown in the region stays far from abated and carries the potential to deteriorate further, as per the latest PMIs in core Euroland and despite the lacklustre improvement in a couple of German sentiment gauges. Speaking of Germany, the likeliness that the country could slip back into recession in the third quarter just adds to the already gloomy panorama for the bloc and weighs further on the single currency. The unremitting slowdown in the region does nothing but justify the ‘looser for longer’ monetary stance by the ECB. On another front, potential US tariffs on imports of EU cars remain well on the table, while the Brexit limbo and UK politics adds to the ongoing concerns.

EUR/USD technical analysis
At the moment, the pair is retreating 0.09% at 1.0948 and a breach of 1.0879 (2019 low Oct.1) would target 1.0839 (monthly low May 11 2017) en route to 1.0569 (monthly low Apr.10 2017). On the upside, the next hurdle aligns at 1.1000 (21-day SMA) followed by 1.1109 (monthly high Sep.13) and finally 1.1163 (high Aug.26).

 

[StraussX]

#forex #analysis #socialtrading #fintech

The #GBPUSD pair reversed an early European session dip to sub-1.2200 levels and rallied around 30-35 pips in the last hour, albeit lacked any strong follow-through and quickly retreated few pips thereafter.


The continued showing some resilience below the 1.2200 round-figure marks and managed to regain some positive traction amid some renewed US Dollar weakness. The latest developments on the US-China trade front threatened to derail already delicate trade negotiations and turned out to be one of the key factors weighing on the Greenback.


Brexit uncertainties continue to cap the upside

Apart from a subdued USD price action, the uptick lacked any major fundamental catalyst and remained capped in the wake of overnight reports that Brexit talks between Britain and the European Union were close to breaking down. Meanwhile, the UK PM Boris Johnson reiterated that they would leave the EU by October 31st and revived fears of a no-deal Brexit.


Moreover, the latest comments by the Irish finance minister, Paschal Donohoe clearly indicated that any Brexit deal is nowhere in the offering, which might further contribute towards keeping a lid on any runaway rally for the major. Donohoe said that there is a big gap between the UK and the EU on the crucial Irish backstop issue and constructive engagement is the only choice.


Hence, it will be prudent to wait for a strong follow-through buying before confirming that the recent slide from the vicinity of the 1.2600 handle is already over and (or) positioning for any further near-term appreciating move amid absent relevant market-moving economic releases - either from the UK or the US.


Later during the early North-American session, a scheduled speech by the Fed Chair Jerome Powell might influence the USD price dynamics and produce some short-term trading opportunities ahead of the release of the minutes of the latest FOMC monetary policy meeting held on September 17-18.

 

[StraussX]

#USDJPY #forex #analysis #followme #socialtrading

The #USDJPY pair finally broke out of its daily consolidative trading range and jumped to near two-week tops, around the 108.25 region in the last hour.


A sustained move above 100-day EMA was seen as a key trigger for bullish traders and remained supportive of some follow-through buying interest on Friday.


The pair is now trying to build on the momentum further beyond a four-month-old descending trend-line resistance amid growing US-China trade optimism.


This is closely followed by 50% Fibonacci retracement level of the 112.40-104.45 downfall, which if cleared will set the stage for a further near-term appreciating move.


Beyond the said hurdle around mid-108.00s, the pair is likely to aim towards reclaiming the 109.00 handle en-route 61.8% Fibo. resistance near the 109.30-35 region.


On the flip side, any meaningful pullback now seems to find some support near the 107.85 region (100-day EMA), which if broken might negate the constructive outlook.