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SunbirdFX Daily Analysis 18/08/2011

Discussion in 'Commercial Trade Journals' started by SunbirdChief, Aug 18, 2011.

  1. SunbirdChief

    SunbirdChief Recruit

    Aug 10, 2011
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    Daily Analysis 18.08.2011

    Mix closes on Wall Street yesterday on the background of surprising PPI data. Stocks rose at the beginning of the day but started weakening during the second part of the day. Investors will concentrate today on the CPI data and continuing jobless claims.

    Indices made red candlestick and created reversal patterns that might start another bearish session in the markets.

    NASDAQ went below Tuesday's low and a continuation today can take it back to 2120 and below.

    The YEN is showing signs of trying to break-down the lower boundary of the channel that it has been moving in for the past week. The support at 79.5 is still holding on but the fact that the recent highs are getting lower, is a positive signal for the JPY. This pair is about to face, again, the support of the historical low at 76.2 and a strong break-down might slide under 74.0.

    The Canadian dollar is correcting against the USD these days, but it is still weaker than the JPY, though the recent lows are getting higher and that might indicate for a possible rising of the CAD against the JPY. However, most of the technical signs show that a break-down should occur here at some point, and complete the "Inverted Cup & Handle" pattern above 77.0. If this pair crosses under 77.50, it will increase the chances for more declines towards 77.0. A break-up of 78.5 will be a bullish signal for this pair, and a positive signal for the CAD.

    The American debt crisis cut out the overwhelming momentum of the NZD. No doubt, the sharp declines were just because of investors who got nervous and institutional might believe that this is an opportunity to buy the NZD at a very cheap price. The interest levels in New-Zealand (2.5%) is still higher than most of the western countries and therefore the currency attracts many investors.

    In the technical aspect, the NZD is trying to overcome the resistance at 84.0. A strong break-up there might be the trigger for the heavy buyers, who can launch it to 88.0 again.


    Warning: Remember, that the prices of shares and other investments can fall fast and you may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions on real cash trading accounts. Take independent advice before making such decisions.

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