Daily Forex News

The British pound continued last week’s rally after penetrating the indicated 1.6045/86 level (50% Fibonacci retracement of 1.8672-1.3500 and minimum 38.2% retracement of fall from 2.0162-1.3500) and extended to 1.6432 (exactly equality Fibonacci projection of 1.5852-1.6183 measured from 1.6053) on Monday before retreating, however, pullback is likely to be limited…

Above 97.24 resistance this time would signal wave 2 from 101.45 is over and bring gain to 99.80 first…. The greenback rebounded strongly from 93.85 (22 May 2009) to 97.24, however, lack of follow through buying and the retreat suggests further choppy sideways trading would be seen and only a…

Euro’s upside is likely to be capped at 1.4363 and bring retreat… The single currency accelerated after breaking 1.3739 resistance (19 March) and rallied to the indicated Fibonacci equality projection level of 1.4167 in the last trading of May, much faster than our previous thought in early June, suggesting erratic…

While the common currencies extends recent rise against dollar, it’s clearly underperforming other majors. As noted in the regular technical outlook reports, EUR/GBP is still in its short term down trend while EUR/CHF is still bounded in sideway consolidation. While EUR/JPY did strengthen mildly, it’s kept below recent high of…

Monday in Asia, the Australian dollar soared to a fresh multi-month high against the U.S. currency after reports showed that Australia’s retail sales advanced for a second month in April and the nation’s manufacturing PMI improved in May, providing evidence that the nation’s recession may be easing.

Monday morning in Asia, the yen edged up to multi-day highs against its U.S., European and Swiss counterparts on speculation General Motors Corp. will file for bankruptcy today, spurring demand for Japan’s currency as a refuge from the financial crisis.

EUR/JPY’s break of 134.20 minor support suggests that an intraday top is in place at 135.68 and turns outlook neutral for the moment. Some consolidation might be seen but after all, downside should be contained above 131.68 support and bring rally resumption to 137.38 resistance first. Break there will confirm…

GBP/JPY is staying below 38.2% retracement of 215.87 to 118.81 at 155.88 and with 4 hours MACD staying below signal line. Intraday outlook remains neutral for the moment and another pull back to 4 hours 55 EMA (now at 151.42) cannot be ruled out. As mentioned before, sustained break of…

EUR/GBP’s recovery should have completed at 0.8799 and intraday bias is flipped back to the downside for 0.8652 first. Break will confirm that recent decline has resumed for 61.8% projection of 0.9494 to 0.8785 from 0.9036 at 0.8598 next. On the upside, above 0.8731 minor resistance will turn intraday outlook…

Outlook in EUR/CHF remains rather mixed for the moment but favor is mildly on the downside with 1.5159 minor resistance intact. Retest of 1.5007 would likely be seen and break will extend the choppy correction from 1.5446 further towards 61.8% retracement of 1.4577 to 1.5446 at 1.4909. On the upside,…