Forex Market News
Captain America is back!!!
With a lack of anything new overnight or yesterday, the USD has continued its momentum higher. We had an attempt at some USD pullback on Monday into the European trading session, however it didn’t take long for the market to pull the trigger and start buying USD. USDJPY pretty much led the way with EUR taking a short spell at the lows of 1.0820, however there was no waiting on Tuesday as EUR crashed through 1.0800 and dropped almost 200 pips in a steady run lower. AUD and NZD followed throughout Asia with commodities and RBNZ action on Thursday weighing on the respective ccys.
No real standout news overnight.
DATA HIGHLIGHTS TONIGHT
– China Industrial Production
– ECB Draghi speaks
– UK Manufacturing Production
– Crude Oil Inventories
Tomorrow morning RBNZ – No change in rates expected, (never say never!), but look for potential dovish view going forward on interest rates.
EURUSD – Mondays support levels got taken out and down we go. With lack of any new market news or developments, the bearish sentiment and momentum continues. Market talking parity now. No surprises there.
Resistance : 1.0770, 1.0820 (previous supports)
Support : 1.0500, 1.0225
USDJPY – Finally we take out the December 2014 high at 121.83 ! That’s been hard work from 115.60 pullback ! However with US equities sold off again and a pullback in UST yields, the market failed to hold that breakout and a we have a large high test bar. Watch for equity markets to turn around and look to buy the pullback. Trend is higher. I heard someone mention 140 today !! Nikkei rallying today as I write this with USDYEN 50pips off the lows.
Resistance : 122.02, 124.15
Support : 120.80, 120.45
AUDUSD – It may have taken awhile for the selling to emerge but here it is ! 5 days of it ! We’ve finally taken out the 0.7625ish low and it feels like the AUD is playing a bit of catch up on the selling. Commodities still weigh with gold and iron ore a concern. Employment or should I say unemployment data tomorrow. Anyone else notice that the RBA has been talking Unemployment yet to peak !!
Resistance : 0.7627, 0.7680,0.7750
Support : 0.7520, 0.7450
GBPUSD – A decent attempt at recovery (100pips) after Friday night’s steep sell off, however only served to form a train-track bearish price formation and another test of Fridays lows. Holding in there and let’s see what BOE Gov Carney has to say tonight ! 1.4950 here we come.
Resistance : 1.5195, 1.5290
Support : 1.4990, 1.4950, 1.4820
NZDUSD – The Kiwi is starting to show why it’s a flightless bird !! Another 2 days of selling as market eyes the RBNZ meeting tomorrow with recent comments from the PM and the central bank alluding to a more dovish outlook ! There’s also been a threat of poisoning to Fonterra dairy products that either way will weigh on the ccy.
Resistance : 0.7330, 0.7400
Support : 0.7200, 0.7175, 0.7120
CNBC News piece worth reading! ‘Dollar rally has long way to go!’
Good Luck !