forexsq.com - The US Dollar has scope for a corrective pullback after prices hit a new 2012 high yesterday, which may produce a short-term recovery in the S&P 500. S&P 500 – Prices took out support at 1331.50, the 123.6% Fibonacci expansion, to challenge the 138.2% level at 1322.00. A break below this boundary exposes the 150% Fib at 1313.90. The 1331.50 level has been recast as near-term resista
Fundamentally, things have been quiet over the past 24 hours and because of this we will instead take the time to focus on the technical picture today. The following are some of the markets that could be worth watching over the coming days: EUR/USD: Has been very well bid since basing out by 1.3000 last week and the market is now testing some key resistance in the 1.3300 area. This market has bee
The pair continues recovering towards the 1.0750 resistance. Breaking this level would expose additional gains towards the 1.1080 high. The nearest support is now eyed by the 200-Day SMA at 1.0410. Only a daily close below this level would negate our constructive outlook and accelerate declines towards the 1.0150-1.0165 support area, right where the 50-Day SMA and the 100-Day SMA reside.
The pair broke the 200-Day SMA by 1.0410, but did not manage to hold above this level, so we see the risks of a decline towards the 50-Day SMA by 1.0130. Consolidating below the 50-Day SMA would open a new downside extension towards the 0.9860, 0.9660 supports and the 0.9385 low. Meanwhile, should the pair hold above the 200-Day SMA, it will confirm the uptrend towards the 1.0750 resistance.
The Euro initially maintained a firm tone on Friday with a further decline in peripheral bond yields helping to underpin sentiment while there was pressure to curb short positions ahead of the weekend. After a strong Spanish bond auction, the latest Italian sale was slightly disappointing in terms of investor demand and there were still record amounts held on deposit at the ECB which hurt sentime
The pair is still trying to reach the 200-Day SMA by 1.0410. A daily close above the 200-Day SMA would confirm the medium-term uptrend towards the 1.0750 resistance. However, while the pair trades below the 200-Day SMA, we see the risks of a decline towards the 50-Day SMA by 1.0130. Consolidating below the 50-Day SMA would open a new downside extension towards the 0.9860, 0.9660 supports and the
The Euro again hit resistance in the 1.2780 area against the dollar on Wednesday and was subjected to renewed selling pressure ahead of the US open as underlying sentiment remained negative towards the currency.
There were further concerns surrounding Greek debt-restructuring talks with reports that negotiations were close to deadlock as there was heavy resistance to calls for a larger private
ForexSQ.com - My call for a drive higher from USDJPY has, admittedly, been a consistent belief of mine for much of this past year. And yet, the pair has forged little progress to make that a reality. As they say, patience is a virtue. My trading approach is to combine rudimentary technicals and capital flow-based fundamentals; and both of these legs of analysis lead me to the same bullish conclus
Although EURCHF posted a negative weekly performance, Friday’s low was rejected and a daily Bullish Hammer formation posted. Signals for sentiment are mildly bullish going into this week and so our call is Bullish above 1.2105
ForexSQ.com - The US Dollar may rise amid returning safe-haven demand as S&P 500 technical positioning warns that a double top may be emerging. S&P 500 – Prices put in a Doji candlestick below resistance at 1272.60, the December 8 swing high, hinting bullish momentum is ebbing and threatening a reversal lower ahead. Initial support lines up at 1253.80, a former resistance at a falling trend line
ForexSQ.com - The greenback was marginally higher at the close of North American trade with the Dow Jones FXCM Dollar Index (Ticker: USDollar) squeezing out a fractional advance of just 0.06% on the session. Euphoria from the ECB’s Long-Term Refinancing Operations or LTRO was short lived in early US trade as markets pared early gains on extremely low volume to trade in negative territory for the
Forex Technical Analysis - The 4H GBP/CHF chart shows a bullish market that has turned sideways, but is still trading about the 200 period moving average. There has been a rally since the market tagged the 200SMA treating it as support. The rally has brought the market to the 1.4540 -1.4550 area, which has been resistance in early November. On top of that the 4H RSI which is near overbought level
ForexSQ.com - Following is technical analysis of seven major currency pairs for this week:
USD/JPY
1st support - 77.28 (minor)
1st resistance - 78.29 (minor)
2nd support - 77.00 (minor)
2nd resistance - 79.10 (minor)
USD/JPY is likely to trade in a higher range this week as the five-day moving average is above the 15-day moving average and rising. Resistance is at Tuesday's h
Technical Forex Analysis - Despite persisting light liquidity conditions, concerns have not abated over Europe. The Thanksgiving holiday week typically provides relief for markets; seasonality trends dictate the last few weeks of November and the month of December are bullish for higher yielding currencies and risk-correlated assets. This year has proven different, however, at least at the beginn
USD/CAD’s short-term price activity remains positive, following the sharp bullish reversal from the psychological 1.0000 level (prior trading range). Positive momentum needs to hold above 1.0400 (on a daily close) to rebuild the potential major upside reversal higher above the old resistance level at 1.0673 (August high & Congestion zone). A strong directional confirmation above here will open
