02 / 06 / 2016 | Technical Analysis

USD/JPY: Recovers its losses to trade at 109.17

European Session
The USD/JPY pair has been under bearish pressure since the 30th of May 2016, with the sellers leading the price from as high as 111.44 to as low as 108.83.

The major fell sharply on Wednesday hitting the intraday low of 109.06, but gained traction during the North American session on risk aversion. Today, the pair initially fell to the session low of 108.83, but registered a minor recovery to currently trade at 109.17. The risk-off sentiment continues to underpin the safe haven yen.  In addition, diminishing expectations of a June U.S. rate hike and concerns over the global growth seem to affect the pair.

In the event that the price breaks below the session low of 108.83, the pair could find support at 108.66 and 108.45 respectively.

On the flip side, in the scenario where the price breaks above 109.60, the pair could rise up to 110.00 and 110.45 in extension.



Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.
 

 
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01 / 06 / 2016 | Technical Analysis

GBP/USD: Extends Losses to 1.4441

North American Session
The GBP/USD pair has been trading in a broad range since the 24th of May 2016, with the price ranging between the levels of 1.4724 and 1.4550.

The pair initially rose on Friday, testing the daily high of 1.4725, but subsequently fell sharply to the daily lows of 1.4465. Today, the major consolidated for a while, but then fell to 1.4441 at the start of the North American session. Despite the U.K.’s upbeat May manufacturing PMI data, the sterling remains under pressure on increased Brexit fears.

In the event that the pair breaks below1.4423, the price could find support at 1.4386 and 1.4345 respectively.

To the upside, in the scenario where the price breaks above 1.4550, the pair could reach 1.4584 and 1.4620 in extension.



Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.
 
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01 / 06 / 2016 | Market News

Aussie and Kiwi strengthen on strong Australia GDP and mixed Chinese data

The greenback fell against the Japanese yen on Wednesday, weakening from Monday’s peak, while the Australian and New Zealand dollars strengthened following the release of strong Australian growth data and mixed manufacturing reports from China.

The dollar fell 0.7% to 109.95 against the yen, pulling away from a one-month high reached on Monday. The yen’s rise came on a day when the Prime Minister Shinzo Abe is expected to announce a delay to a scheduled sales tax raise. The Japanese Prime Minister told members of his party on Wednesday that he will postpone the tax hike by two and a half years.

The Aussie rose 0.54% to 0.7273 against the dollar, the highest level since the 18th of May 2016, after the Australian Bureau of Statistics reported on Wednesday that GDP advanced 1.1% in the three months to March, exceeding expectations for a 0.8% increase.

The country’s economy grew by 0.75 in the fourth quarter of 2015, whose figure was downwardly revised from a previously estimated growth of 0.6%/ On a year-over-year basis, GDP rose by 3.1% in the first quarter, as opposed to expectations for a 2.8% increase.

The New Zealand dollar also edged higher 0.31% to 0.6786 against the dollar, the highest since the 23rd of May. A report released from China earlier on Wednesday revealed that the country’s official manufacturing PMI index remained unchanged at 50.1 in May. Economists had expected a downtick to 50.0. In addition, China’s Caixin manufacturing PMI fell to 49.2 in May from 49.4 in April, exceeding expectations for a drop to 49.3.
 
The U.S. dollar index was last steady at 95.75, still close to Monday’s two-month highs of 95.96.

Overnight, the greenback inched down against its other major counterparts, after soft U.S. consumer confidence and manufacturing reports overshadowed other positive reports released earlier in the day.

The U.S. Conference Board reported that its consumer confidence index dropped to 92.6 in May from 94.7 in April, whose figure was revised down from a previously reported 94.2 reading. Economists had expected the index to rise to 96.0.

The report came after the Kingsbury International market research group said that its Chicago PMI fell to a three-month low of 49.3 in May from a 50.4 print in the previous month. Economists had expected the index to tick up to 50.9.

Earlier in the day, the U.S. Commerce Department reported that personal spending rose by 1.0% in May, above expectations for a 0.7% increase. Personal spending for March inched up 0.1%. Personal income increased by 0.4%, in line with expectations and after rising by 0.4% in April.

The EUR/USD fell 0.17% to settle at 1.1127, after the release of a report revealing that inflation in May for the eurozone fell by 0.1% on a year-over-year basis. In April, inflation fell by 0.2%.
 
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01 / 06 / 2016 | Technical Analysis

EUR/CHF: Ranging Around 1.1058

European Session
The EUR/CHF pair has been trading sideways since the 25th of May 2016, with the price trading in a tight range between the levels of 1.1083 and 1.1038.

The European cross initially fell on Tuesday, but found enough support at 1.1030 to turn things back around and reach the daily high of 1.1074. Today, the pair consolidated around 1.1058. Downbeat reports from the Chinese manufacturing PMI and the falling crude oil prices are affecting the risk associated sentiment today, boosting the Swiss safe haven. Investors will be monitoring the Swiss retail sales and the SVME PMI due later in the session.

In the event that the price breaks below 1.1038, the pair could find support at 1.1016 and 1.1002 respectively.

Alternatively, in the scenario where the price breaks above 1.1083, the pair could reach 1.1094 and 1.1128 in extension.



Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.
 
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