Forex Forum to Share, Discuss, Communicate and Trade Forex

Technical News | GDMFX Brokerage | Daily

Share and discuss your analysis, opinions or simply the gut feeling about the possible market direction, trends and/or possibilities for any reversals in this forum.
Image

Technical News | GDMFX Brokerage | Daily

Postby GDMFX » Fri Jul 04, 2014 4:16 pm

FOREX NEWS: INDEPENDENCE DAY AFFECTS THE US DOLLAR. IRREGULAR TRADING EXPECTED


EUR/USD
Forex News: ECB President Mario Draghi indicated during yesterday’s Press Conference that interest rates will remain low, a fact which weakened the Euro. On the other hand, the US Dollar strengthened once the Non Farm Payrolls showed much better numbers than analysts’ forecast and these two factors generated a bear-controlled day.

Image

Technical Outlook
The confluence zone created by the bullish trend line and the level of 1.3640 was broken decisively yesterday, a fact which would normally generate an extended move down. However, lately the pair is moving in a very difficult to predict fashion and lacks volatility, except for some isolated bursts. If the support at 1.3585 will be broken, the next logical target is 1.3520 but if this support is not broken today, we might see another move up which will encounter resistance at the recently broken trend line.

Fundamental Outlook
The day’s only noteworthy release is the German Factory Orders, scheduled at 6:00 am GMT and expected to drop significantly from 3.1% to -0.8%, a fact which would further weaken the Euro. The United States celebrate Independence Day and no economic indicators will be released. Also, American banks are closed and this might translate into irregular volatility.


GBP/USD
The Pound suffered from a lower than anticipated value of the Services PMI and the greenback strengthened on the back of positive employment data; as a result, the anticipated bearish retracement occurred and the pair touched support.

Image

Technical Outlook
Yesterday’s touch of 1.7095 support resulted in a bounce higher so we expect to see a move that will test the recent high formed at 1.7176. The last bearish move cleared the overbought condition of the Relative Strength Index, a fact which sets the stage for further bullish moves; however, we must wait and see if the Dollar strength generated by the NFP will continue throughout today and if this is the case, price will most likely touch 1.7095 once again.

Fundamental Outlook
The United Kingdom doesn’t release any major economic data today and we expect a slow trading session, considering also the fact that US banks are closed.
User avatar
GDMFX
 
Posts: 2175
Joined: Tue Nov 06, 2012 7:02 am
Location: Auckland, New Zealand

Technical News | GDMFX Brokerage | Daily

Postby GDMFX » Tue Jul 08, 2014 4:02 pm

FOREX NEWS: ALL EYES ON GERMAN TRADE BALANCE AND UK’S MANUFACTURING NUMBERS


EUR/USD
Forex News: The pair traded in a 30 pip range yesterday as no major economic releases affected price movement and we saw a small bounce off support. Germany’s Industrial Production came out worse than anticipated but the event didn’t have a strong impact.

Image

Technical Outlook
According to the ranging behavior exhibited lately by the pair, the next possible move is a bounce higher off 1.3585 support, considering also the fact that the Relative Strength Index is moving upwards after a brief encounter with its 30 level; if this bounce occurs, the resistance at 1.3640 will be the next target but a break of support will make 1.3520 the immediate bearish destination.

Fundamental Outlook
The German Trade Balance comes out today at 6:00 am GMT with an anticipated decrease from the previous 17.7B to 15.7B. The indicator shows the difference between imported and exported goods and a positive numbers means that more goods were exported than imported, a fact which usually strengthens the Euro.


GBP/USD
Overall the Pound had a bearish day but support wasn’t touched and price didn’t make any spectacular moves. Trading lacked major reversals or whipsaws.

Image

Technical Outlook
We consider that the pair’s first target is the support located at 1.7095 and once this retracement lower is completed, we expect the bullish trend to resume for another attempt to break 1.7180 resistance. A break of 1.7095 would encounter potential support at 1.7063 but today’s price action will most likely be decided by economic factors.

Fundamental Outlook
AT 8:30 am GMT the UK Manufacturing Production is released. This indicator shows the change in the total value of output produced by manufacturers and represents about 80% of the entire UK Industrial Production; higher numbers suggest increased economic activity and thus, a stronger Pound. The anticipated change is 0.5%, compared with last month’s 0.4%.
User avatar
GDMFX
 
Posts: 2175
Joined: Tue Nov 06, 2012 7:02 am
Location: Auckland, New Zealand

Re: Technical News | GDMFX Brokerage | Daily

Postby GDMFX » Wed Jul 09, 2014 1:09 pm

FOREX NEWS: US DOLLAR STILL WEAK AGAINST ITS COUNTERPARTS. FOMC MINUTES IN THE SPOTLIGHT


EUR/USD
Forex News: Price moved north yesterday after bouncing for a second time off of 1.3585 support and the Euro bulls proved they are not yet ready to admit defeat. The rise was partly generated by a surprisingly better value of the German Trade Balance.

Image

Technical Outlook
Latest price action indicates that the next destination of the pair is the resistance located at 1.3640 as price tried on two separate occasions to break 1.3585 but failed. However, if the bears manage to tip the scales in their favor by breaking 1.3585, the pair’s next target will become 1.3520 support. Our bias is mainly neutral on the pair as the daily range is about 30 pips and price movement is extremely slow.

Fundamental Outlook
The main event of the day is the release of the FOMC Meeting Minutes scheduled at 6:00 pm GMT. The document will offer insights into the reasons that stood behind the FOMC members’ vote regarding the US interest rate and will probably give some hints about future monetary direction. Usually this event creates strong movement so we recommend caution if trading at the time.

At 7:30 pm GMT, ECB President Mario Draghi will deliver a speech in London at the Tommaso Padoa-Schioppa Memorial Lecture. Although the speech is not directly related to ECB’ monetary policy, Draghi’s public appearances can always influence the Euro strongly and caution is recommended as well.


GBP/USD
The Pound lost ground against the US Dollar during the first part of yesterday’s trading session as the UK Manufacturing Production showed a totally disappointing decrease of -1.3%. Later in the day however, the bulls erased most of the losses.

Image

Technical Outlook
Yesterday we saw an immediate rejection when price touched the support zone created at 1.7095, a fact that shows that bulls still have a lot of underlying strength and could very well take the pair into 1.7180 area. Despite bad UK economic data, the US Dollar cannot take the Pound lower and for the time being, support is holding so the chances of a new high have increased.

Fundamental Outlook
Today the United Kingdom didn’t schedule any market moving economic indicators so price direction will be influenced by the FOMC Meeting Minutes and by technical factors.
User avatar
GDMFX
 
Posts: 2175
Joined: Tue Nov 06, 2012 7:02 am
Location: Auckland, New Zealand

Technical News | GDMFX Brokerage | Daily

Postby GDMFX » Thu Jul 10, 2014 1:55 pm

FOREX NEWS: THE GREENBACK CONTINUES TO LOSE GROUND. RESISTANCE LEVELS THREATENED


EUR/USD
Forex News: Yesterday, before the FOMC Meeting Minutes, the pair rose to touch resistance as the US Dollar continued to lose ground against the Euro. The Minutes had a mixed impact and took the pair higher after an initial drop.

Image

Technical Outlook
The bulls have the opportunity to break 1.3640 resistance and to take the pair into 1.3675. Since we are trading in a range-bound market, support and resistance levels tend to have a greater importance than in a trending market so if price stalls at 1.3675 and the Relative Strength Index becomes overbought, we anticipate a bearish pullback.

Fundamental Outlook
The ECB will release their Monthly Bulletin today at 8:00 am GMT; the document will contain an economic outlook and economic expectations from the Bank’s perspective and also reveals the data which was analyzed when the ECB made the Interest Rate decision. The event is considered to have a medium impact on the Euro unless surprising data is revealed.


GBP/USD
The pair touched support once again but the release of the FOMC Meeting Minutes generated a push north and currently the pair is headed towards 1.7180 top.

Image

Technical Outlook
The US Dollar doesn’t seem to have an answer for Pound’s strength and the bears cannot break a single support level. Every time the pair touches the support at 1.7095, it bounces upwards but on the higher time frames, price is overbought and retracements lower are a distinct possibility. Until 1.7180 or 1.7095 is broken, out bias is neutral on the pair.

Fundamental Outlook
The Bank of England announces today the Interest Rate but no change is anticipated from the current 0.50% and probably the event will just create irregular volatility at the time of the release. If any hints are offered about future rate increases or if speculation takes over the market, we will probably see strong movement for the Pound. The scheduled time is 11:00 am GMT and we recommend caution if trading.
User avatar
GDMFX
 
Posts: 2175
Joined: Tue Nov 06, 2012 7:02 am
Location: Auckland, New Zealand

Re: Technical News | GDMFX Brokerage | Daily

Postby GDMFX » Fri Jul 11, 2014 12:02 pm

FOREX NEWS: THE LACK OF IMPORTANT ECONOMIC RELEASES SETS THE STAGE FOR SLOW PRICE ACTION


EUR/USD
Forex News: The Euro lost its appeal for investors as a Portuguese bank missed debt payments and generated concerns for the region’s economic recovery. As a result, the pair bounced lower at resistance and support is threatened again.

Image

Technical Outlook
The resistance zone located at 1.3640 – 1.3650 held perfectly yesterday and stopped the previous rally, generating a swift move into the support located at 1.3585. The same bounce-or-break scenario will be played out today: a bearish break will open the door for a touch of 1.3520 while a bounce higher will make 1.3640 the first upper target once more. A breakout is anticipated, considering that for the entire week the pair traded in this narrow range, but the direction is unclear.

Fundamental Outlook
We have a slow day ahead, with no major economic news scheduled for release by either Europe or the United States. Price action is expected to be ranging unless unscheduled events occur.


GBP/USD
Bank of England decided to keep the interest rate at a record low of 0.50%, a fact that was anticipated by market participants and as a result, it didn’t create any market volatility.

Image

Technical Outlook
The bulls didn’t manage to take price as high as 1.7180 and yesterday the pair’s direction was bearish; however, 1.7095 wasn’t threatened and price remained inside the channel created by the two mentioned levels. As we stated before, the pair is overbought on the higher time frames and this increases the chance of a bearish move, but we maintain our neutral stance until a break of either support or resistance occurs.

Fundamental Outlook
The day is calm for the Pound as the United Kingdom didn’t schedule for release any high-impact indicators. Price direction will be mainly affected by technical factors.
User avatar
GDMFX
 
Posts: 2175
Joined: Tue Nov 06, 2012 7:02 am
Location: Auckland, New Zealand

Re: Technical News | GDMFX Brokerage | Daily

Postby GDMFX » Mon Jul 14, 2014 12:44 pm

FOREX NEWS: MIXED PRICE ACTION AHEAD OF MARIO DRAGHI’S TESTIMONY


EUR/USD
Forex News: Friday lacked major news announcements and price action was extremely slow, moving sideways for almost the entire day. Support is still holding as the pair traded in a 35 pip range.

Image

Technical Outlook
Price remains confined within the horizontal channel created by the support located at 1.3585 and the resistance at 1.3640. Lately the pair totally lacks volatility and bounces between S/R levels as neither bulls nor bears seem interested to take control of direction. We expect more of this type of movement until 1.3640 or 1.3585 is broken, a fact which may occur today during Mario Draghi’s speech.

Fundamental Outlook
At 5:00 pm GMT, ECB President Mario Draghi will testify on monetary policy in Strasbourg, before European Parliament’s Committee on Economic and Monetary Affairs. The speech will most likely offer clues about future monetary direction and actions of the ECB, probably generating a price breakout. We recommend caution if trading during the speech.


GBP/USD
The Pound slowed down Friday and weakened against the greenback but the bears couldn’t take the pair below 1.7095 and the week finished above this support.

Image

Technical Outlook
The support at 1.7095 has been tested several times and the downwards pressure is increasing lately. The Pound reached historical highs and now the time for a bearish retracement has come, considering the fact that price is overextended and the Relative Strength Index is moving down from overbought territory on the higher time frames (Daily and Weekly). If today 1.7095 is broken, the first potential target is 1.7063; otherwise we will have another day when price ranges inside the channel.

Fundamental Outlook
We have a calm economic day as no major events are scheduled by the UK. Price action will be mostly driven by technical factors.
User avatar
GDMFX
 
Posts: 2175
Joined: Tue Nov 06, 2012 7:02 am
Location: Auckland, New Zealand

Re: Technical News | GDMFX Brokerage | Daily

Postby GDMFX » Tue Jul 15, 2014 6:28 am

FOREX NEWS: FULL DAY AHEAD. HIGH-PROFILE EVENTS AND HEAVY MOVEMENT EXPECTED


EUR/USD
Forex News: The Euro adopted a bullish path yesterday on the back of speculation that the ECB might use more stimulus measures such as a lending program which will boost consumer credit.

Image

Technical Outlook
The pair moved higher, in close vicinity of 1.3640 resistance but according to the ranging style which governs the market lately, it bounced lower. The main levels to watch remain1.3640 as resistance and 1.3585 as support but considering today’s main events, we anticipate a breakout; however, the direction will be totally dependent on the outcome of these events.

Fundamental Outlook
Germany will announce at 9:00 am GMT the ZEW Economic Sentiment will be released, showing the level of optimism among German institutional investors and analysts who are highly informed about economic conditions due to the nature of their jobs. The anticipated value is 28.9, a decrease from the previous 29.8 and lower numbers usually weaken the Euro.

The US Retail Sales are released at 12:30 pm GMT; the indicator measures the change in sales made at retail outlets and its release is considered to have a high impact. The expected value is 0.6% compared with the previous 0.3% and higher numbers are beneficial for the US Dollar.

Fed Chair Janet Yellen will testify today at 2:00 pm GMT in Washington before the Senate Banking Committee; the topic is the Semiannual Monetary Policy Report and the speech is likely to be a major market mover, especially during its the second part when members of the Committee will ask questions and Janet Yellen will answer them.


GBP/USD
The Pound finally retraced yesterday and managed to break the closest support. The move south is attributed to high prices that were overextended and in need of a breather.

Image

Technical Outlook
The break of the support located at 1.7095 is not a reason to believe the uptrend has finished but rather a signal that bullish momentum is fading. The chances of moves upwards remain high and a good place for uptrend resumption is 1.7063 (which is potential support, not confirmed yet), followed by 1.7010. The day’s fundamental events will have a very high impact on price action.

Fundamental Outlook
United Kingdom’s Consumer Price Index will be announced today at 8:30 am GMT. The indicator shows the price that consumers have to pay for the goods they purchase and is the main gauge of inflation; any increases above the expected 1.6% can further strengthen the Pound, taking the pair higher.

BOE Governor Mark Carney will testify at 9:00 am GMT about the Financial Stability Report at the House of Commons Treasury Committee Hearing. The testimony can have a huge effect on Pound’s movement, depending on the Governor’s attitude and answers so we recommend caution if trading at the time. Of course, the US events mentioned above will have a direct and high impact on price action.
User avatar
GDMFX
 
Posts: 2175
Joined: Tue Nov 06, 2012 7:02 am
Location: Auckland, New Zealand

Re: Technical News | GDMFX Brokerage | Daily

Postby GDMFX » Wed Jul 16, 2014 2:26 pm

FOREX NEWS: US DOLLAR IN THE SPOTLIGHT FOR YELLEN’S SECOND TESTIMONY


EUR/USD
Forex News: Germany posted yesterday a disappointing number for the ZEW Economic Sentiment, showing that optimism regarding economic conditions is declining. On top of that, Fed Chair Janet Yellen stated that the economy continues to improve and the US Dollar added to the previous gains.

Image

Technical Outlook
The support at 1.3585 was broken yesterday on the back of Euro weakness coupled with greenback strength but the level still needs to be re-tested to confirm the break. This re-test is usually seen easier on a lower time frame and if it is successful, we anticipate a touch of the next support, located at 1.3520. A move back above 1.3585 would make 1.3640 the first target and would suggest that the ranging period is still not over.

Fundamental Outlook
The US Producer Price index is released at 12:30 pm GMT, showing the change in prices paid by producers for their goods and services, compared to the previous month. The indicator has inflationary implications because a higher price charged by producers will be eventually passed on to retailers and ultimately, to the consumer. The expected change is 0.2% compared with last month’s -0.2% and higher numbers are considered beneficial for the greenback. Later in the day, at 2:00 pm GMT Fed Chair Yellen will testify before the House Financial Services Committee, an event considered to have a high impact on the US Dollar.


GBP/USD
The Pound scored another major victory against the greenback as United Kingdom’s CPI showed an unexpected increase from 1.5% to 1.9%. As a result, the pair printed a new multi-year high at 1.7191.

Image

Technical Outlook
Although we have a new high, the resistance located around 1.7180 held yesterday and even rejected price lower; at the moment, that resistance is just pierced, not broken and we expect a new descent into 1.7095 support zone as the market is still overextended. A daily close above 1.7180 would be considered a true break of resistance and would indicate that higher prices will follow.

Fundamental Outlook
The day’s main event for the Pound is the release of the Claimant Count Change, an indicator which tracks changes in the number of unemployed people claiming social help due to their lack of jobs. A higher number suggests economic contraction and usually weakens the Pound; the release is scheduled at 8:30 am GMT and the expected change is -27.1K while the previous was -27.4K.
User avatar
GDMFX
 
Posts: 2175
Joined: Tue Nov 06, 2012 7:02 am
Location: Auckland, New Zealand

Re: Technical News | GDMFX Brokerage | Daily

Postby GDMFX » Thu Jul 17, 2014 11:36 am

FOREX NEWS: ALL EYES TURN TOWARDS EUROPEAN INFLATION INDICATORS


EUR/USD
Forex News: The US Dollar continued to advance against the Euro as Fed Chair Janet Yellen maintained a hawkish attitude and the US Producer Price Index change surpassed analysts’ expectations. Price is nearing support but no attempts were made to break it.

Image

Technical Outlook
An important support for medium term price action is ahead: 1.3520 and we are faced with another bounce-or-break scenario. However, this time we slightly favor a bounce north, mostly because the Relative Strength Index has passed the 30 level downwards, suggesting oversold conditions and from a medium term perspective, the pair has been ranging. If the current support is broken, the next destination is likely to be 1.3480 (visible on a Daily chart).

Fundamental Outlook
The day’s main event will be the release of the European Consumer Price Index scheduled at 9:00 am GMT and expected to remain unchanged at 0.5%. ECB’s inflation target is just below 2% and the current CPI value is considered too low, thus an even lower value would be detrimental for the Euro.

At 2:00 pm GMT the Philly Fed Manufacturing Index comes out, showing the opinions of about 250 manufacturers from the Philadelphia district regarding current economic and business conditions. The expected value is 15.6, a decrease from the previous 17.8 and lower numbers usually weaken the greenback.


GBP/USD
The pair had a mixed trading day yesterday and price remained confined between support and resistance despite signs of improving job market in the United Kingdom.

Technical Outlook
Price is still on its way to 1.7095 following a bounce off 1.7180 resistance zone. The Relative Strength Index doesn’t show an extreme reading so there is no major reason to believe that bulls will take back control of the pair unless the US economy will show surprising figures.

Fundamental Outlook
The United Kingdom has a calm day ahead in terms of economic releases so all eyes will turn towards the United States events.
User avatar
GDMFX
 
Posts: 2175
Joined: Tue Nov 06, 2012 7:02 am
Location: Auckland, New Zealand

Technical News | GDMFX Brokerage | Daily

Postby GDMFX » Fri Jul 18, 2014 12:57 pm

FOREX NEWS: SUPPORT LEVELS AHEAD. A BOUNCE-OR-BREAK SCENARIO UNFOLDS


EUR/USD
Forex News: The pair touched 1.3520 support yesterday but the European CPI remained unchanged and price stalled. The US Manufacturing Index for the Philadelphia district posted a surprisingly good value but the release just briefly strengthened the US Dollar.

Image

Technical Outlook
The bears’ run seems exhausted and the Relative Strength Index is starting to climb out of oversold territory, a fact which suggests that support is still too strong for the sellers to break and that a bounce up might be next. However, yesterday’s ranging price action leaves the door open for both a bounce and a break. First resistance is located at 1.3585 while support sits at 1.3480 (if the current level is broken).

Fundamental Outlook
The sole release that can trigger sharp moves is the US Consumer Sentiment which is a leading indicator of consumer spending because usually when people are optimistic about the country’s economic conditions, they tend to spend more. The release is scheduled at 1:55 pm GMT and the expected figure is 83.5, a rise from the previous 82.5; if analysts’ forecast is surpassed, we are likely to see US Dollar strength.


GBP/USD
The Pound wasn’t affected by major news releases yesterday and the pair continued to move down towards 1.7095 as predicted. The US release helped the bears achieve this target.

Image

Technical Outlook
For medium term movement, the support located at 1.7063 is very important but the first barrier in front of falling prices is the current level of 1.7095. A break of both these levels would indicate that the pair is ready for a bigger retracement and that the uptrend is starting to fade away. A bounce higher could potentially generate a climb back into 1.7180 area of resistance.

Fundamental Outlook
Ahead we have another day that lacks major United Kingdom news, thus price direction will be mainly affected by the technical factors and by the US release.
User avatar
GDMFX
 
Posts: 2175
Joined: Tue Nov 06, 2012 7:02 am
Location: Auckland, New Zealand

Next

Return to What Do You Think? Your 2 Cents...

 

Who is online on Forum

Registered users: Baidu [Spider], bestforexclub24com, Bing [Bot], FXTechstrategy, Google [Bot], Google Adsense [Bot], Jan Schoemaker, Kristian Lennert