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AUDUSD bounced strongly from 0.9321, suggesting that the pair remains in uptrend from 0.9208, the fall from 0.9437 would possibly be consolidation of the uptrend. Further rise to test 0.9437 resistance is possible, a break above this level will signal resumption of the uptrend, then next target would be at 0.9500 area. Support is now at 0.9321, only break below this level will confirm that the uptrend had completed at 0.9437 already,. Then deeper decline to 0.9250 area could be seen.

AUDUSD broke below the lower line of the price channel on 4-hour chart, and is now facing 0.9349 support, a breakdown below this level will indicate that the uptrend from 0.9229 had completed at 0.9437 already, then deeper decline to 0.9250 area could be seen. On the upside, as long as 0.9349 support holds, the fall from 0.9437 would possibly be consolidation of the uptrend, one more rise to 0.9500 area is still possible after consolidation.

By CentralBankNews.info
    Nigeria’s central bank maintained its policy rate at 12.0 percent, as widely expected, saying core inflation has continued to send conflicting signals since January and “if the upward trend continues as observed in April 2014, it could be a major factor in the upward trend in prices.”
    The Central Bank of Nigeria (CBN), which has kept its policy rate steady since October 2011, also said high domestic liquidity could exert pressure on both the exchange rate and consumer prices, accentuating the already high demand for foreign exchange, further depleting external reserves.
    In a statement from Acting Governor Sarah Alade, who will be handing the reins of the CBN to Godwin Emefiele next month, the bank’s monetary policy committee voice concern over the eroded fiscal buffers that have exposed the Nigerian economy to domestic and external shocks, accentuating the regime of persistently high interest rates, elevated demand for foreign exchange and declining accretion of reserves.
   “The Committee enjoined the management of  the bank to continue to monitor developments in the fiscal space with a view to taking appropriate monetary policy actions,” the bank said.
    Nigeria’s headline inflation rate rose slightly to 7.0 percent in April from 7.8 percent, within the central bank’s 6.0 – 9.0 percent target range. Core inflation, which had eased to 6.6 percent in January, rose further to 7.5 percent in April after 7.2 percent in February.

    Nigeria’s gross official reserves declined to US$ 38.3 billion as of May 15 – the equivalent of some 9 months of imports – from $37.4 billion end-March and $42.85 billion end-December.
    However, the central bank also said it was satisfied with the overall domestic economic environment, with stable inflation, recent stability in the foreign exchange rate of the naira currency, stable interbank rates and a strong growth outlook.
    “Over the medium term, the major risks to price stability appeared to be emanating from both external and internal sources,” the bank said.
    The external risks to Nigeria’s economy stem from higher yields and interest rates in the U.S. and rather low economic activity in emerging markets, both of which could have repercussions for foreign exchange inflows and stability of the exchange rates.
   Internal risks include high systemic banking system liquidity, elevated security concerns and expected high election-related spending in the run-up to the 2015 general elections.
    The naira has been depreciating steadily against the U.S. dollar since 2009 and fell in February when the country’s president suspended the central bank’s internationally-respected governor, Lamido Sanusi.
    But the currency started to appreciate in March, helped by the central bank’s tightening when its raised the cash reserve requirement on private sector deposits by 300 basis points to 15.0 percent.
    Since March 1, the naira has  gained 2.1 percent, quoted at 162.34 to the U.S. dollar today, but it is still down 1.5 percent since the start of the year.

    http://ift.tt/1iP0FNb

By HY Markets Forex Blog

Stocks – Asia

Stocks in the Asian region were seen traded higher on Tuesday, bouncing back from the previous losses.

Japan’s benchmark Nikkei 225 index climbed 0.49% higher ending the session at 14,075.25, while Tokyo’s Topix index rose 0.29% closing at 1,153.38. Yahoo Japan climbed by 13% on Tuesday after Softbank canceled plans to sell the telecommunications company, eAccess to the search engine giants.

Hong Kong’s Hang Seng index gained 0.78% to 22,877.90 at the time of writing, while the mainland Chinese benchmark Shanghai Composite climbed 0.16% higher to 2,008.46. The Chinese computer  manufacturer Lenovo gained 2.68%, while the telecom company china Unicom lost 2.72%.

In China, the government intends to push for development in the capital markets by spreading stock sales to ensure similar figures each month, China Securities Regulatory Commission Chairman Xiao Gang said in a statement.

The South Korean Kospi index slid 0.19% lower to 2,011.26 at the time of writing, while in Australia, the nation’s benchmark S&P/ASX index edged 0.32% higher closing the session at 5,426.50. Treasury Wine soared 19.29% after turning down a takeover offer from Kohlberg Kravis Roberts.

The Reserve Bank of Australia released minutes from its last monetary policy meeting, which showed no additional hints regarding the bank’s interest rates forecast.

“The board noted that overall growth in coming quarters was likely to be below trend given expected slower growth in exports, the decline in mining investment and the planned fiscal consolidation,” the minutes stated.

Stocks – Europe

European stocks were little changed on Tuesday as investors focus on the UK inflation rate data for April due to be released later in the day.

The European Euro Stoxx 50 declined 0.09% opening at 3,164.50, while the German DAX slid 0.13% to 9,647.80 at the time of writing. Meanwhile, the French CAC 40 fell 0.31% starting the session at 4,456.30, while the UK’s benchmark FTSE 100 edged 0.12% lower to 6,836.30.

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The post Stocks Market Report 20th May appeared first on | HY Markets Official blog.

Article provided by HY Markets Forex Blog

By HY Markets Forex Blog

Gold futures were seen trading slightly lower on Tuesday, during the Asian trading session as traders focus on Ukraine’s upcoming presidential election scheduled for May 25.

Gold futures edged 0.29% lower at $1,290.10 an ounce on the comex in New York at the time of writing, while futures for silver lost 0.22% to $19.310 an ounce at the same time. The US dollar, which advanced 1.7% higher against the 17-nation euro currency in the last two weeks, was slightly changed before the release of the Federal Reserve’s April 29-30 meeting minutes scheduled for Wednesday.

Gold – Ukraine

As traders focus on Ukraine’s presidential election which is scheduled for Sunday, tensions in the eastern region of the country eased after the Russian President Putin ordered Russian troops in Rostov, Belgorod and Bryansk regions to withdraw from the Ukrainian boarder.

Tensions in Ukraine spurred the commodity’s safe-haven status as the prices for the metal climbed 7.5% this year due to the country’s turmoil.

Assets in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, came in at 2.70 tons lower to 782.85 tons on Friday.

Philadelphia’s Fed President Charles Plosser is expected to give a speech later in the day in Washington, while the Fed President of New York, William Dudley is also expected to speak in New York Today. The Central bank has reduced its asset purchases at each of its monthly policy meeting for the past three months to $45 billion per month.

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The post Gold Prices Trades below $1,300; Ukraine Elections in Focus appeared first on | HY Markets Official blog.

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The EURUSD Is In A Narrow Range Again

The EURUSD continues trading in a tight range where it has already been for a week except falling to 1.3648. Yesterday, it rose above 1.3720 and tested 1.3734 and after that it returned to 1.3706. Thus, a forecast is the same – growth attempts encounter interest to sale that keeps the risks of testing the support around 1.3618. Breaking through current resistance will lead to a rise in the direction of the 38th figure, however the pair is trading below, a bearish sentiment will be kept.

The GBPUSD Running A Risk To Recover A Decline

The GBPUSD is also consolidating in a tight range. Resistance is around 1.6842, and support is around 1.6805. Inability to rise and to consolidate above 1.6842 is a negative factor for the pair. In theory, bears are trying to test 1.6730 in a short time again. However, today data on consumer inflation in the UK will be published that can influence significantly on the dynamics of the GBPUSD.

The USDCHF Can Test 0.8959

Yesterday, fluctuations in the EURUSD were not marked. It stuck in a tight range this time between the levels of 0.8903 and 0.8923. The franc remains under pressure along with the risks of testing the USDCHF bulls by the current high at the level of 0.8959. Breaking through this level will open the way to the 91st figure. A fall below 0.8840-0.8800 will weaken a bullish impulse and put the 87th figure at risk.

provided by IAFT

Technical Sentiment: Consolidation

Key Takeaways

• Gold’s trading range will continue to narrow until a break-out occurs;
• 50-Day Moving Average provides resistance at $1307;
• Support extends as low as $1282-$1284

While intraday traders may be focusing too much on “gold strengthening above $1300” / “gold weakens below $1300”, this large round number is not the real level of interest in the current market conditions. Gold has been stuck in a triangle formation and the boundaries of this triangle, not the $1300 handle, represent the key levels which will determine the direction of the break-out.

Technical Analysis

Even without the aid of trendlines or moving averages, it is clear that gold has been pressured from both directions. The range has been increasingly tighter as the precious metal formed Lower Highs and Higher Lows, the necessary conditions for a perfect triangle formation.

The large moving averages do not provide too much information at this point mainly due to the location of the triangle, right on the 100-Day SMA and 200-Day SMA. The 50-Day Moving Average coincides with the resistance at $1307, yet price action already confirmed the resistance trendline. Thankfully, gold’s movement as of late have not been chaotic, consequently most pivot levels since April have been respected. In the case of a break-out we can rely on several levels.

For a bullish scenario Gold needs to maintain the Higher Lows configuration. Support has been confirmed around $1288 in recent days, yet the triangle support extends as low as $1282-$1284. A bullish break-out will be confirmed on a rally above $1307. This move will first target $1314-$1315, with a main target around $1331 (April 14^th top).

The bearish scenario first has to clear this week’s low in order to test the triangle support. Even if a break below $1282 will show price outside the triangle formation, only below $1277 Gold will be completely bearish after invalidating the Higher Lows configuration. The first target for bears will be $1268 (April 24^th Low), followed by support levels $1260 and $1231.

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Prepared by Alexandru Z., Chief Currency Strategist at Capital Trust Markets

Article By RoboForex.com

Analysis for May 20^th, 2014

USD CAD, “US Dollar vs Canadian Dollar”

At H4 chart of USD CAD, Alligator is going to sleep; D Alligator is still moving southwards. Indicators are in green zone; price is forming bullish fractal; there is Squat bar on the MFI. Bullish fractal may reach Alligator’s jaw (blue line), and then I expect breakout of fractals to the downside.

At H1 chart of USD CAD, Alligator is reversing upwards. AO is in red zone, AC is near balance line; there is Squat bar on the MFI. After two equidistant fractals, I expect breakout of fractals to the downside.

NZD USD, “New Zealand Dollar vs US Dollar”

At H4 chart of NZD USD, Alligator is opening its mouth downwards. AO and AC are in red zone; there is Fade bar on the MFI and might be Squat one too. Bearish fractal may reach D Alligator’s teeth, and then I expect breakout of fractals to the upside.

At H1 chart of NZD USD, Alligator is moving southwards. AO and AC are in grey zone; there is Green bar on the MFI and no Squat ones. Bullish fractal may reach Alligator’s jaw, and then I expect breakout of fractals to the downside.

RoboForex Analytical Department

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Article By RoboForex.com

Analysis for May 20^th, 2014

EUR USD, “Euro vs US Dollar”

Possibly, Euro finished the second “leg” C of (D) of ascending zigzag (D) of [B] in the form of diagonal triangle. In this case, later price is expected to start forming final descending zigzag (E) of [B].

Probably, price started forming final descending zigzag (E). Right now, Euro is forming its first “leg”A of (E). After completing local ascending correction [ii] of A, pair may continue falling down inside impulse [iii] of A.

Possibly, pair is forming local ascending correction [ii] of A, which may be followed by descending impulse [iii] of A.

GBP USD, “Great Britain Pound vs US Dollar”

Possibly, Pound completed ascending zigzag D of (B) of large skewed triangle (B), which may be followed by final descending zigzag E of (B).

Possibly, price started forming final descending zigzag E. Right now, Pound is forming local ascending correction(ii) of [a] of Eof the first “leg”[a] of E. If this assumption is correct, then after completing it, pair may continue falling down inside impulse (iii) of [a].

Probably, price is forming local ascending correction (ii) of [a], which may be followed by descending impulse (iii) of [a].

USD CHF, “US Dollar vs Swiss Franc”

Probably, Franc completed diagonal triangle [c] of D of descending zigzag D of (4), which may be followed by final ascending zigzag E of (4).

Probably, price started forming final ascending zigzag E. Right now, Franc is forming its first “leg”[a] of E. After completing local descending correction (ii) of [a], pair may continue growing up inside impulse (iii) of [a].

Possibly, pair is forming local descending correction (ii) of [a], which may be followed by ascending impulse (iii) of [a].

USD JPY, “US Dollar vs Japanese Yen”

Probably, Yen is forming long horizontal correction 4 of (A). In this case, later price is expected to start final ascending movement inside wave 5 of (A).

Probably, pair finished descending zigzag [c] of 4 of horizontal triangle 4, which may be followed by ascending zigzag [d] of 4.

Possibly, price completed descending zigzag [c] of 4 and started forming ascending zigzag [d] of 4 of horizontal triangle 4.

RoboForex Analytical Department

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.