Daily Forex News With Market Directions
Elliott Wave View: DAX Ending 5 Waves (09-Jan-2018 at 11:36:59 am)
DAX Short Term Elliott Wave view suggests that the Index ended Intermediate wave (X) pullback at 12731.46. The rally from there is unfolding as a 5 waves impulse Elliott Wave structure where Minutte wave (i) ended at 12943, Minutte wave (ii) ended at 12881.5, Minutte wave (iii) ended at 13408.5, and Minutte wave (iv) is proposed complete at 13328.5. Index has scope to extend 1 more leg higher in Minutte wave (v) before ending 5 waves up from 1/2 low (12731.46).
Market Morning Briefing: Dollar Index Has Moved Up (09-Jan-2018 at 08:40:37 am)
Dollar Index (92.267) has moved up and seems to be on course to test 92.5-92.75, seen as near term resistance on 3 day candles and 3 day line charts. Simultaneously, we saw Euro (1.1971) break below 1.20, which could now move down towards crucial support near 1.19-1.195 (seen on 3 day and weekly candles) as the Dollar Index moves towards 92.5-92.75.
GBP/JPY Threatens To Break Through Key Resistance (09-Jan-2018 at 07:07:56 am)
The GBP/JPY looks like it is about to stage a breakout as it hovers near the top of its recent range. Since bottoming out in October 2016, the Guppy has been forming a series of higher highs and higher lows. Consequently, its key moving averages have turned higher which objectively suggest that the trend is indeed bullish. If the GBP/JPY now manages to find a firm footing above the 152.80/153.00 support area then we may see a break above the 153.50 long-term resistance, followed by a run towards the Fibonacci extension levels at 154.45 (127.2%) and 155.80/5 (161.8%) next, with the psychological level 155.00 also being a bullish objective. However all bets would off if price goes back below 151.80 first – this being the low prior to the latest rally into 153.50 resistance. In this potential scenario, we could see a sizeable pullback before the uptrend potentially resumes. Indeed, from a fundamental point of view we expect the GBP/JPY to head higher over time because we expect the divergence between UK and Japanese monetary policies to grow. The Bank of England has already dropped its dovish bias and has raised interest rates for the first time since before the financial crisis. The Bank of Japan on the other hand is still printing money and keeping interest rates below zero. Should UK inflation rises further or stays at current levels then the BoE will have little choice but to raise interest rates again. This would be pound-positive, especially against currencies where the central bank is still dovish – such as the Japanese yen or the Swiss franc, to name but a few.
USD/CAD Remains Pressured After Jobs Data (09-Jan-2018 at 07:06:53 am)
Friday's simultaneous release of US and Canadian jobs data for December resulted in USD/CAD extending its sharp slide of the past three weeks. Friday's plunge was driven in large part by the contrast between the US and Canadian employment data, as the US headline number fell significantly short of expectations while Canada's job creation in December far exceeded forecasts. Monday's price action has seen a modest rebound for USD/CAD, which has pared some of Friday's losses, but the currency pair remains pressured ahead of next week's potentially pivotal interest rate decision from the Bank of Canada
Market Update - Asian Session: North And South Korea Hold First Talks Since 2015 (09-Jan-2018 at 11:35:17 am)
General Trend: Asian equities are generally higher as US indices ended mostly positive. Nikkei and USD/JPY pare gains amid BoJ reduction of purchases of longer dated JGBs in daily operation. Analysts ponder if BoJ move at daily operation has broader implications for monetary policy
Top Weighs On Euro (09-Jan-2018 at 08:14:59 am)
EUR/USD is in danger of forming a double top after the failure at 1.21. The New Zealand dollar was the top performer while the euro lagged. Japan returns from holiday Tuesday. There are currently 7 Premium trades in progress, 4 of which are in profit, 2 in a loss and 1 unchanged.
Dollar Bears Got Too Far Over Their Skis (09-Jan-2018 at 07:03:50 am)
The USD dollar has a spring in its step to start the week. But with little to no evidence that the broader US dollar downtrend has run its course, the short-term correction is little more than the recent buildup on EURUSD longs has left dollar bears too far over their skis and vulnerable to a position squeeze given the lack of near-term bullish Euro catalysts.
USD/CAD Canadian Dollar Flat As BoC Ponders January Rate Hike (09-Jan-2018 at 07:02:00 am)
The Canadian dollar was slightly lower agains the US dollar at the start of the week. The loonie is up 1.17 percent versus the greenback so far in 2018. The American currency has not had the best of starts this year. The tax reform and December interest rate hike by the Fed had already been priced in and investors are looking ahead to a highly political year for the USD. Canadian employment was a huge surprise to the upside with another massive job gain. The number of jobs added to the economy in December was 78,600 much higher than the forecasted 1,000. The monster gain has prompted Canadian financial institutions to update their forecasts for the January policy meeting of the BoC with the majority expecting a rate hike. The loonie continued rising after the slow start to the year of the US and the boost from higher oil prices.
Gold Rally Takes Pause As Investors Look For Cues (09-Jan-2018 at 06:59:05 am)
After another week of gains, gold is trading quietly in the Monday session. In North American trade, the spot price for an ounce of gold is $1319.03, down 0.07% on the day. On the release front, it’s a quiet start to the trading week, with no major US releases
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