Daily Forex News

Investors sentiments remain extremely weak last week. Earlier optimism based on hope for a new stimulus package from China eroded after Premier Wen said that the current package was enough to keep can help China achieve the 8% growth target in 2009 already. DOW and SP 500 touched fresh 12…

Apart from reducing interest to 0.5%, the lowest level since the central bank was established, the BOE announced a quantitative easing policy worth up to 150B pounds. We would like to analyze how this policy will affect the UK’s economic growth, inflation as well as performance of sterling.

EUR/USD recovered after dipping to 1.2456 initially last week. Downside momentum is clearly diminishing with bullish divergence condition in 4 hours MACD. But after fall, short term outlook remains bearish as long as 1.2991 resistance holds and further decline is still in favor. Below 1.2456 will target a retest of…

USD/JPY edged higher to 99.67 initially last week but subsequent sharp fall indicates that a short term top is formed with bearish divergence condition in 4 hours MACD and RSI. Initial bias is mildly on the downside this week for deeper decline to 38.2% retracement of 87.12 to 99.67 at…

GBP/USD’s recovery from 1.3956 extended to 1.4304 last week but was limited below 1.4363 resistance and fell sharply since then. With 1.4363 resistance intact, further decline is still expected. Below 1.3956 will suggest that fall from 1.4984 has resumed to retest 1.3503 low. On the upside, though, break of 1.4363…

USD/CHF’s sharp fall from 1.1847 was inline with our view that consolidation from 1.1883 is still in progress. Initial bias will remain on the downside this week as long as 1.1642 minor resistance holds. Further decline could still be seen towards 1.1313 cluster support (38.2% retracement of 1.0366 to 1.1883…

Short term outlook in AUD/USD remains mixed but after all, with 0.6553 resistance intact, further decline is still in favor. Break of 0.6248 low will confirm that fall from 0.7267 has resumed for 0.6008 low. Meanwhile, on the upside, break of 0.6553 will indicate that fall from 0.6849 has completed…

USD/CAD’s rally lost moment after hitting 1.2972, below 1.3005/15 key resistance zone and turned into sideway consolidation. Initial bias is neutral this week and com more consolidation could be seen. But after all, pull back should be contained above 1.2392 support and bring rally resumption. Sustained break of 1.3005/15 will…

EUR/GBP continued to be bounded in established range of 0.8635 and 0.9071 last week as choppy consolidation continued. Focus remains on mentioned 0.9082 cluster resistance (38.2% retracement of 0.9799 to 0.8635 at 0.9080). Sustained break there will affirm the case that whole corrective decline from 0.9799 has completed with three…

EUR/CHF’s strong break of 1.4657 support cleared out the near term picture and confirmed that whole decline from 1.5880 has resumed. Initial bias will remain on the downside this week as long as 1.4724 minor resistance holds. Further decline should be seen to next target of 61.8% projection of 1.5880…