Month: May 2014

EURUSD: EUR extended its weakness on Friday following through on the back of its Thursday losses. Support lies at the 1.3737 level where a violation will aim at the 1.3700 level followed by the 1.3650 level. Below here will aim at the 1.3600 level. Its daily RSI is bullish and pointing lower supporting this view. Conversely, on a recovery higher , resistance resides at the 1.3844 level where a violation if seen will aim at the 1.3909 level followed by the 1.3950 level and subsequently the 1.3993/1.4000 levels. Above here if seen will aim at the 1.4050 level and after that the 1.4100 level. All in all, EUR remains biased to the downside on further weakness.

Article by www.fxtechstrategy.com

By HY Markets Forex Blog

USD/CHF recently reversed strongly up after reaching the sell target 0.8700 that was set in our earlier report for this currency pair.USD/CHF is expected to continue the latest upward correction from 0.8700 toward the next correction target at the resistance level 0.8850.

This resistance level stands in the center of the strong resistance area made out of the two resistance trendlines lines belonging to two down channels from this January and September of last year – as well as 61.8% Fibonacci Correction of the earlier downward price impulse from April (as you can see below).

The post HY MARKETS News: Forex Report: USD/CHF appeared first on | HY Markets Official blog.

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By HY Markets Forex Blog

DAX has been moving sideways in the last few trading sessions – after the recent sharp reversal from the 61.8% Fibonacci Correction of the preceding minor upward impulse wave from the end of the intermediate ABC correction (2).

The index is currently trading close to the upper resistance trendline of the daily Triangle from the start of April. If DAX breaks this Triangle it can rise to the next buy target 9730.00 (top of the earlier impulse (1)).DAX will also need to break the upper channel line of the daily down channel from January to reach this target.

The post HYMARKETS News: Index Report: Deutsche Borse AG German Stock Index appeared first on | HY Markets Official blog.

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By HY Markets Forex Blog

Brent Crude Oil recently reversed up from 50% Fibonacci Correction of the previous sharp minor impulse (i) from the start of April. The upward reversal from this support level completes the previous minor corrective wave (ii). 

Brent Crude Oil is expected to rise further to the next buy target at 111.00 inside the currently active minor impulse wave (iii) belonging to the longer-term impulse wave 3 from last month. To reach this target, Brent Crude Oil will need to break the upper resistance trend-lines of the daily Triangle from March and of the daily Down Channel from December.

The post HY MARKETS Commodities Report: Brent Crude Oil appeared first on | HY Markets Official blog.

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By HY Markets Forex Blog

Intel recently reversed up twice from the support level 26.00. The support zone near this support level (highlighted on the daily Intel chart below) was strengthened by 38.2% Fibonacci Correction of the preceding sharp upward price impulse from the middle of March and the lower daily Bollinger Band.

Intel is expected to rise further in the currently active minor impulse wave 3 toward the next buy target 27.00 (the resistance level which earlier created the top of the intermediate wave (A) in January and the top of the recent minor impulse 1 in April).

The post HY MARKETS News : Stocks Report:Intel Corporation appeared first on | HY Markets Official blog.

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EUR/USD closed with a large bearish pin bar on Thursday, showing considerable weakness in the price action, following the European Central Bank (ECB) monetary policy announcement and dovish press conference by the ECB head Mario Draghi thereof. The long term sentiment remains bullish due to Higher High in the recent upward wave.

Technical Analysis

As of this writing, EUR/USD is being traded near 1.3833. A support may be noted around 1.3818 which is the confluence of 55 Simple Moving Average (SMA), trendline support and 50% fib level as demonstrated in the following chart. A break and daily closing below the trendline might trigger renewed selling interest, validating a dip below the 1.3700 handle.

On the upside, the pair is expected to face a hurdle near 1.3896, the 76.4% fib level ahead of 1.3993 which is the intraday high of yesterday. A break above 1.3993 will be eyeing initially 1.4000 and then 1.4070.

ECB Monetary Policy

The ECB kept the benchmark interest rate unchanged at 0.25%, in line with the median projection of different analysts surveyed by Bloomberg. The Euro showed skyrocket movement after the unchanged monetary policy but then reversed all the gains and closed broadly lower against almost all the major currency pairs because of the dovish tone by the ECB chief Mario Draghi during press conference. Draghi clearly said that the bank might adopt some unconventional instrument such as Quantitative Easing (QE), another cash rate cut or negative deposit rate to cope with the persistent slowdown in inflation.

Trade Ideas

Considering the huge bearish pin bar on the daily chart and dovish monetary policy tone by the ECB, selling the pair around the current levels could be a good strategy; the trade should however be stopped on a break above the intraday high of yesterday.

By capitaltrustmarkets.com

Article By RoboForex.com

Analysis for May 9^th, 2014

EUR USD, “Euro vs US Dollar”

Euro was just several pips shy from the group of upper fibo levels. Price rebounded downwards and broke several levels at a time. Target is in the area of 78.6% 138.2%.

As we can see at H1 chart, pair is going to start new correction with target at level of 23.6%. Most likely, after reaching it, price will rebound. Expecting this to happen, I’ve placed pending sell order.

USD CHF, “US Dollar vs Swiss Franc”

Franc also was just several pips shy from the group of lower fibo levels. In the near term, pair may start new correction. After this correction, price is expected to start new ascending movement towards the group of upper fibo levels.

As we can see at H1 chart, Franc is about to start new correction. It looks like in the future price is going to test local level of 23.6%. If market rebounds from it, pair will start new ascending movement.

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 9^th, 2014

DJIA Index

Chart structure has been changed. Probably, after completing double three pattern inside wave [2], Index formed initial bullish impulse inside wave (1). In the near term, price may start new correction.

More detailed wave structure is shown on H1 chart. Probably, market started new correction, which may turn out to be quite long. I managed to open new sell order after Index rebounded from upper border of diagonal triangle pattern.

Crude Oil

Probably, Oil continues falling down inside the third wave. On minor wave level, price is finishing the second wave and about to start new descending movement inside the third one. In the future, I’m planning to open sell order right after instrument starts falling down inside wave [3].

As we can see at the H1 chart, wave [2] turned out to be longer than we expected. Considering that price formed bullish wedge pattern inside wave (A), instrument is expected to start local correction. In the future, Silver may start moving upwards inside wave (C) of [2].

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.

By CentralBankNews.info
    Peru’s central bank maintained its policy reference rate at 4.0 percent, saying inflation is initially forecast to remain close to the bank’s upper band of its target range but then converge to the 2 percent midpoint.
    The Central Bank of Peru (BCRP), which last cut its rate by 25 basis points in November as a preventative move against further economic slowdown, said indicators of activity and surveys on macroeconomic expectations point to “dynamism in economic activity, although a lower rates than expected.”
    Peru’s Gross Domestic Product expanded by 1.8 percent in the fourth quarter of last year from the third quarter for annual growth of 5.2 percent, up from 4.5 percent.
    The headline inflation rate rose to 3.52 percent in April from 3.38 percent in the previous month while the rate of inflation without food and energy was 2.83 percent.
    BCRP targets inflation at a midpoint of 2.0 percent, plus/minus one percentage point.

    Earlier this week central bank Governor Julio Velarde told Reuters that interest rates will likely be maintained in coming months unless inflation rises due to demand or there is a strong slowdown in economic activity.
    Last month the BCRP lowered its 2014 growth forecast to 5.5 percent from a previous 6.0 percent. In 2013 the economy grew by 5.6 percent, down from 6.0 percent in 2012.
    The forecast for end-year inflation was raised to 2.5 to 3.0 percent this year from 1.5-2.5 percent due to higher food prices. In 2013 inflation was 2.9 percent.

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By CentralBankNews.info
    South Korea’s central bank held its base rate steady at 2.50 percent, as expected, and said “inflation will gradually rise, although it will remain low for the time being due largely to the stability of agricultural product prices.”
    Last month the Bank of Korea’s (BOK) also said that inflation would gradually rise, but remain low for the time being due to a “bountiful agricultural harvest.”
    The BOK, which cut its rate by 25 basis points in 2013, said the economic recovery was continuing in line with the growth trend, with exports sustaining their buoyancy.
    “The Committee expects that the domestic economy will maintain a negative output gap for the time being going forward, although it forecasts that the gap will gradually narrow,” the BOK said.
    Korea’s headline inflation rate rose to 1.5 percent in April from 1.3 percent the previous month, mainly due to expansions in the extent of increases in service fees and industrial product prices.
    Core inflation, which excludes the prices of agricultural and petroleum products, rose to 2.3 percent from 2.1 percent.
    The BOK has forecast 2014 inflation of 2.3 percent, up from 2013’s 1.3 percent.

    Earlier this week, new BOK Governor Lee-Ju-yeol said in Kazakhstan at the Asian Development Bank meeting that he would give a warning two to three months ahead of any changes to the bank’s policy rate.
    Speaking to reporters, Lee said financial markets had accepted the BOK’s projection of economic recovery and thus a signal of an interest rate hike.
    The situation could change “but if it goes in the direction of the outlook, it would be difficult to see a lowering of the interest rate,” Lee said, adding he was confident of 4 percent growth by the end of the year.
    Korea’s Gross Domestic Product expanded by 0.9 percent in the first quarter from the fourth quarter of 2013 for annual growth of 3.9 percent, up from 3.7 percent.

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