AUDUSD Looks For Correction

Gregor Horvat

AUDUSD is at new lows which has been expected in the last few months as rally from April to May highs has a clear corrective personality as mentioned at the time. We labeled it as wave (4), so current leg down from 0.8160 should then be wave (5), final leg within a bearish sequence. However, before we may look for a bottom formation we need five subwaves down into around 0.7000 area where bottom could be seen sometime this year. more…

EURUSD To Make New Lows To 1.0695?

Ville Vainio

EURUSD was on a down note with the Greek vote last week adding some volatility to this pair. In my opinion, no matter what, Greece is staying on the Euro zone. I am expecting this pair to decline further before turning bullish for the next corrective wave up. If this is going to be a triangle forming here, the decline should be subdued. If this is following my preferred wave count, This can go much lower. We will find out soon enough which view is correct. more…

EURUSD: all bears need now is a ‘lower low’

Fawad Razaqzada

The EURUSD has been trending lower in recent weeks and the selling pressure has accelerated over the past few days as the investor focus has returned to the interest rate differential between the US and Eurozone economies. Whereas the Fed has signalled that it is ready to hike rates later this year, the ECB has only recently started QE and there were no suggestions from President Mario Draghi today that the bank is ready to trim or end the €60 billion a month stimulus programme early. In fact, Draghi said the ECB has temporarily increased emergency funding to Greek banks by €900m. Thus, the ultra-accommodative monetary policy is here to stay for now and this should in theory put downward pressure on European bond yields, which in turn could depress the euro even further. more…

NZDUSD Traders Crying Over Spilt Milk, Could .6400 Be Next?

Matt Weller

If I had told you Tuesday that China’s quarterly GDP would beat expectations, backed up by strong growth in Industrial Production and Retail Sales, you would logically expect NZDUSD to be trading higher. After all, China is New Zealand’s second-largest trading partner behind Australia, which is itself heavily dependent on growth in the world’s largest economy. Unfortunately, this simplified analysis ignores one critical factor: the price of milk. more…

USDJPY Above 123.35 The Pair Is Bullish

Nenad Kerkez

USDJPY has been showing strength and resilience in last 4 days. Technical pattern which is currently shown on H4 chart is clearly V shaped reversal/ Diving Board and it marks strong bounce off important 120.00 zone. Currently the pair is struggling to break 123.35 and above the level pair is considered bullish. If 123.50 breaks the pair could head towards 124.45 , previous double top which shows a confluence with 124.35 resistance. If the pair breaks 122.90 it could gain additional momentum towards 122.00 and 121.50. Overall sentiment and technical picture is still bullish so we need to pay attention to the levels. Breakout/Continuation to the upside is favoured due to momentum and V shaped reversal. more…

USD/JPY: where to next?

Fawad Razaqzada

The appetite for risk has improved noticeably this week, as evidenced by a sharp rebound across the global equity markets. FX traders have likewise witnessed the unwinding of some safe haven trades with CHF and JPY both falling sharply following their recent gains. The US dollar has performed well given the fact that the weekly unemployment claims disappointed expectations and after the minutes from the FOMC’s last policy meeting contained very little in the way of new information other than what we already knew. However, as some FOMC members are concerned about the developments in China and Greece, more…

FOMC Minutes: A Prescient Fed, For Once

Matt Weller

“There are decades where nothing happens; and there are weeks where decades happen.”
– Vladamir Lenin

The Federal Reserve’s June monetary policy meeting was only three weeks ago, but in today’s fast-paced markets, it feels like it was at least a decade ago for short-term. If you recall, the US central bank shifted its interest rate expectations (the so-called “dot chart”) lower, but the median Fed official still expected two interest rate increases this year, likely in September and December. more…

Better trader, better profits.