Daily Forex News

After edging higher to 0.8857 initially last week, AUD/USD reversed and dropped sharply to as low as 0.8567 before recovering. The break of 0.8585 support indicates that a short term top is at least formed at 0.8857 with bearish divergence conditions in 4 hours MACD and RSI. Hence, while some…

USD/CAD had an extremely volatile week, first dropped to as low as 1.0670, then rebounded strongly to 1.0957 before retreating back to middle of the range. Initial bias remains neutral this week and some more pull back might be seen. But after all, as long as 1.0670 support holds, we’re…

EUR/GBP surged to as high as 0.9297, met mentioned target of 61.8% retracement of 0.9799 to 0.8399 at 0.9264 but turned into consolidation since then. Friday’s rebound lacked follow through momentum and subsequent fall from 0.9196 argues that correction from 0.9297 might still be in progress with another fall. Initial…

EUR/CHF spiked higher to 1.5238 last week on SNB intervention but again failed to sustain gain and dropped back to close at 1.5087. Fall from 1.5363 is still in progress and further decline could still be seen to 1.5076 and below. Nevertheless, we’d continue to expect downside to be contained…

EUR/JPY dropped sharply to as low as 129.02 last week but rebounded ahead of 100% projection of 138.70 to 132.17 from 135.47 at 128.94. The strengthen of the rebound form 120.02 and mild bullish convergence conditions in 4 hours MACD and RSI argues that a short term bottom is in…

GBP/JPY’s fall extended further to as low as 139.72 last week and turned into sideway trading since then. Friday’s rebound suggests that consolidation from 139.72 is still in progress and another rise would be seen to above 144.52 minor resistance initially this week. Nevertheless, upside of the recovery is still…

The short answer to that is a definitive, unequivocal ‘maybe.’ The first day of October saw risk assets take a beating for apparently no good reason. True, weekly US jobless claims rose and the ISM manufacturing index disappointed, but we knew from the Chicago PMI that ISM was likely to…

Weak economic data hit markets hard this week, prompting traders to take profits as one of the best quarters for equities seen in decades came to a close on Wednesday. More than one commentator noted that the big slide that many had predicted for September has apparently arrived a month…

This week’s U.S. economic data were a mixed bag. We had some good news, with pending home sales and consumer spending up significantly in August, while many of the manufacturing and employment indicators disappointed. Putting it all together, this week was yet another reminder that the recovery won’t be a…

This will not be your typical economic recovery. The September employment report brought home the harsh realities of the forces of cyclical weakness, structural change and the globalization of the production cycle. Cyclical weakness is evident from the employment report for both income and production. Household income will be weaker…