Investors are expecting an eventual reduction of support by the Fed, and Merkel winning the election this weekend. However, what stock markets have not priced in is the resurgence of Eurozone troubles into the headlines. So what are the options, why is this important and how will this effect markets?
USDCHF remains in downtrend from 0.9455, the rise from 0.9229 is likely consolidation of the downtrend. Resistance is now located at the upper line of the price channel on 4-hour chart, as long as the channel resistance holds, the downtrend could be expected to resume, and another fall towards 0.9000 is still possible. Key resistance is at 0.9340, only break above this level will signal completion of the downtrend, then another rise towards 0.9600 could be seen.
This week was always going to be a tricky one for both traders and investors, with the market’s primary focus being the FOMC meeting on Wednesday. The meeting at which the FED is likely to signal the beginning of the end of its bond buying program. Well, that’s the theory anyway, but given the less that stellar NFP data, this is far from certain.
Today’s Short-Term Forex Outlook Ahead of the Federal Reserve Statement
USDJPY failed to break above the resistance of the downward trend line on 4-hour chart, and pulled back from 98.64, suggesting that the pair remains in downtrend from 101.53. Further decline would likely be seen, and next target would be at 96.00 area. Key resistance is located at the trend line, only a clear break above the trend line resistance could signal completion of the downtrend.
Short Term Daily Forex Analysis – August 16, 2013 Being contained by the resistance of the downward trend line on 4-hour chart, USDJPY pulls back from 98.64.
As mentioned in the previous post, the Yen index can give us an excellent perspective of market sentiment, given the Yen’s unique position within the forex market as both a currency of safe haven and a gauge of market risk.
USDJPY continues its upward movement from 92.56, and the rise extends to as high as 99.66. Further rise is still possible after a minor consolidation, and next target would be at 101.00 area.
The Bank of Japan took control of it’s currency in grand style last week, having duly selected the largest hypodermic they could find, filled it with steroids, and then injected a syringe full directly into the artery of the dollar yen.
Morning Coffee Break – Tuesday April 2 April what is thought of being a strong month historically began the month and second quarter at a slow snail pace. The Dow and the bulls have look to April as the best month of the year as far back as 1950 with an average 2.7% gain for the month.
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