All posts by Janne Muta

Janne Muta is Chief Market Analyst at _url_

EURUSD Challenging Resistance Above 1.1090

Janne Muta

EURUSD rallied to the 1.1090 resistance identified in my report yesterday. The pair reacted lower but then attracted buyers at an intraday support at 1.1012. This has led to a fifth consecutive up day with price once again trying to challenge the resistance area above 1.1090. EURUSD is trading inside the upper Bollinger Bands (1.5 and 2 stdv) and the Stochastics is getting overbought. Trend in 4h resolution has been strong and suggest that this will be another day without a significant correction in EURUSD but the upside is indeed getting limited as the resistance area is near. EURUSD is trading near levels that have been able to turn price lower before, therefore I expect that in today’s trading upside will be limited to 1.1090 – 1.1130 range. more…

EUR/USD Bearish Wedge

Janne Muta

Yesterday’s US May building starts and permits divergence was good news on net but didn’t have an impact on the US Dollar Index. The 11.1% drop in housing starts from an upwardly-revised April cycle-high reflected the tail-end of the winter’s weather gyrations while an 11.8% permits surge to a robust 1.275 mln new cycle-high rate bodes well for housing activity into mid-year. Starts under construction is climbing at a healthy 14% rate into Q2, and home completions have risen 28.3% over the past two months after a 17.3% February-March setback that was likely weather-related. The surge in new home construction and completions will fuel a climb in new home sales into mid-2015. more…

Gold Edging Closer To Support

Janne Muta

Ever since the US dollar started move strongly higher last year most analysts have predicted Gold would considerably lower in USD terms. This however has not taken place and the price of Gold has been moving sideways since November last year. This has been a clear sign of relative strength and suggests that there have been underlying demand factors supporting this market. However, price action in Gold since the US Dollar index (DXY) started topping has not supported the Relative Strength idea. A market that has true relative strength bounces sharply higher when more…