The AUD was a significant rebound as a result of the stronger than expected growth in second quarter (1.2%) due to household consumption and greater than expected increases in exports. This data surprised economists partly because retail sales have stagnated in recent months.
In Germany, against all odds, retail sales fell in July by 0.3%, posting a second consecutive month of decline in annual rate. Over a year, retail sales rose only 0.8%. Read the rest of this entry »
USD-CHF
The week just ended has been very difficult for the USD / CHF, which was down 1.0452 to 1.0217. The supports were broken one after the other and our goal early in the year to 1.0000 could finally be realized in future sessions. The Federal Reserve chairman Ben Bernanke said Friday afternoon ready to take further steps to boost the economy, which should push for a few more months of rising interest rates. Our view for the week is as follows: channel between 1.0000 and 1.0400.
Technical analysis is continueing..
EUR-USD
After flirting with disaster at the technical level last week, the EUR / USD has rebounded over the 50% Fibonacci retracement and moving average 80 days to 1.2600 (1.2584 low), rising to 1.2778 at the highest. The channel that we had given weekly or 1.2500-1.2900, should again be valid for the next 5 sessions. The positive economic figures released in Europe would have allowed a return to the top of the channel, which was not the case, and thus makes us think of a new attempt to test media. Read the rest of this entry »
Forex Technical Analysis
Here is a summary of all technical indicators forex and summarizes a glance the status of different currency exchange market for the day of 27/07/2010.
And above all remember to place your orders! Wink
Good trades to all.
USD-CHF For this new week, the Swiss franc began to increase slightly. The publication of new home sales, better than expected, did not reverse the downward trend of the USD / CHF, which has traded in a channel between 1.0456 and 1.0556. Today, the main support is at 1.0400 and resistance at 1.0585.
EUR-USD The EUR / USD has fluctuated within a relatively narrow channel between 1.2874 and 1.3005. The point of 1.3000 was reached painfully late in the day. If the EUR / USD remains above 1.3000, we could go up to 1.3100, which is our main strength. A return to 1.2950, our support, represent a good buying level.
USD-JPY The dollar has lost color against the yen, from 87.71 to 86.80 at the lowest of the day. The EUR / JPY has spent a quiet day, trading between 112.19 and 113.47. It is possible that the USD / JPY goes below 87.00 to go and test the 86.00 support. Resistance is at 88.00. This afternoon, we expect the figures for U.S. consumer confidence, which could bring us to the volatility.
EUR-CHF Publication of resistance testing in European banks did not have much impact on investors’ choices. The euro began gaining ground to 1.3632, 1.3544 and then down to the lowest of the day. It is not excluded that we touched the 1.3700 during today’s meeting. A return to 1.3600 would provide a good selling opportunity. We establish the 1.3700 resistance and 1.3420 support.
GBP-USD Day on Monday was beneficial to the pound, which rose against the greenback, to 1.5407 to 1.5520. In the second part of the session, the trend has stabilized at around 1.5480. The EUR / GBP was between 0.8322 and 0.8397. We give 1.5575 as resistance to monitor for the Cable and establish support at 1.5340. Channel fluctuation of the EUR / GBP: 0.8310-0.8475.
Tokyo stocks could extend its opening hours in order to increase volumes and to cope with growing competition from Asian platforms, including Chinese markets. The Exchange is currently considering several options, including shortening or even eliminating the lunch break of 90 minutes and offer an evening session for shares traded for cash.
Today officially start negotiations between the EU and Iceland for the country’s accession. Iceland has filed his nomination July 16, 2009 when the country was experiencing a severe financial crisis and its currency, the krona, collapsed on the foreign exchange market. Since then, the popularity of the population for the EU and the euro has significantly blunted, raising fears in some European governments that the negotiations fail.
Since yesterday, an IMF mission in Bucharest to allow the payment of a further tranche of its aid. This new unit is estimated at 900 million euros. The Romanian Government is confident about the delays.
Finally, the Financial Times revealed yesterday that several German banks that have been subjected to tests for resistance have failed to detail their risk on sovereign debt of European states. This information raises many questions about the credibility of the tests.
Asian markets have evolved positively today following figures better than expected sales of new homes in the United States, suggesting a sustained economic growth overseas. The MSCI index has gained nearly 0.6% while the Nikkei has gained 0.2% and the Australian ASX 200 rose 0.5%.
- According to the U.S. Commerce Department, sales of new homes increased 24% from May to June, at an annual rate of 330,000. The market estimate was only a level of 20,000.
- U.S. stocks have benefited from the announcement yesterday, the S & P500 increased on yesterday’s sitting of 1.1%.
- On the foreign exchange market, the EUR / USD has climbed above 1.30 because of the positive mood on financial markets. The dollar has generally lost ground against major currencies. Thus, the pound rose yesterday to a higher level in three months against the dollar after the success of UK banks to resistance testing. The yen, meanwhile, fell to its lowest level in nearly seven weeks against the euro, while Asian markets were operating in the green and that investors expect a rise in durable goods orders in June United States. A possible increase could be a further reduction in Japan’s currency on the FX.
- The Bank of Israel announced yesterday an increase of a quarter point from its key rate to 1.75%, to stem the sharp rise in house prices which have risen 21% in one year.
- On the commodities market, a barrel of crude traded around $ 79 U.S. for the fourth consecutive day.
The news of the day
As expected by the markets, India’s central bank decided to raise its rates this morning by a quarter point to 5.75% in order to fight against inflationary pressures. It also increased the reverse rate by 0.5 points to 4.5%. This is the fourth time since January that the Indian central bank raises rates, while the rate of inflation of wholesale prices is above 10% in five months.
Today, the economic indicators are few. Investors will focus primarily on the U.S. consumer confidence and the publication of the survey CaseShiller on house prices in the United States.