Daily Forex News

Although the single currency surged to 135.76 yesterday, as euro retreated sharply from there, suggesting further consolidation would be seen, however, downside should be limited to 132.50 and bring another rebound for gain to said resistance. However, only a breach of 136.00 would confirm the correction from 138.49 has ended…

Although the rebound from 0.8916 turned out to be stronger than expected, as price has retreated from 0.9148, suggesting further choppy consolidation would take place and mild downside bias remains for another decline. However, only break of 0.8906-16 would confirm the decline from 0.9330 top has resumed and bring stronger…

Although the single currency rose to as high as 1.6001 this Monday, as the currency pair has retreated after faltering below resistance at 1.6096, suggesting further consolidation would take place, however, downside should be limited to 1.5525 (61.8% Fibonacci retracement of 1.5231-1.6001). As we are still keeping our count that…

The aussie traded narrowly since our previous update and further consolidation below recent high at 0.9330 is likely to continue and we are still keeping our view that a temporary top has possibly been formed at 0.9330, hence mild downside bias remains for fall to 0.8900 but a daily close…

Intraday bias in USD/CAD remains mildly on the downside for the moment and pull back from 1.0851 might extend further to 61.8% retracement of 1.0205 to 1.0851 at 1.0452. But downside is expected to be contained there and bring resumption of rise from 1.0205. Above 1.0727 minor resistance will flip…

AUD/USD’s recovery was limited at 0.9142 and retreats and intraday bias is turned neutral for the moment. With 0.9180 resistance intact, fall from 0.9326 is still expected to continue. Break of 0.8915 will target 0.8567 support next. However, note that break of 0.9180 resistance will suggests that fall from 0.9326…

Intraday bias in EUR/GBP remains mildly on the downside for the moment. Break of 0.8911 will indicate that decline from 0.9410 has resumed and should target 100% projection of 0.9410 to 0.8996 from 0.9238 at 0.8824 next. On the upside, above 0.9060 minor resistance will be the first signal that…

Risk trade gains popularity in forex trading

For now, risk appetite is making a comeback on the currency market. Indeed, the risk trade is gaining popularity in forex trading as it appears that the Fed will keep U.S. rates steady, and as further evidence supports the idea that economic recovery is on its way.

GFT’s Boris Schlossberg reports in FX360 on the interest in the risk trade in forex trading:

Risk currencies rallied throughout the Asian and European session helped by better than expected data out of UK firmer equity prices and further gains in gold which reached another record high of $1093/oz. Asian and European bourses tacked on gains as global economic data continued to show steady improvement. Yesterday’s US auto sales which came in at 10.2 million annual run rate suggested that consumer demand appears to have stabilized lending further credence to the recovery trade.

Yesterday’s risk aversion, which helped strengthen the U.S. dollar, appears nowhere today. Instead, investors are optimistically looking for better returns, and waiting for further news that things are improving.

Things could turn around, though. Volatility remains relatively high, and the goodwill everyone feels today could dissipate by tomorrow. But for now, the risk trade is alive and well in forex trading.

See Also

• Looking for Economic Clues
  Forex trading on the currency market

Fed left rates unchanged at 0-0.25% as widely expected. The wordings that rates will be kept at exceptionally low level for an “extended period” of time was practically unchanged. After all, there was nothing special from the FOMC statement. Markets struggled to find directional initially after the release but dollar…

USD/CHF’s fall from 1.0337 extends further in early US session and the development indicates that a short term top is in place at 1.0337 already. Deeper decline might be seen to 1.0156 and below. But still downside should be contained above 1.0032 support and bring rise resumption. Break of 1.0337…