Currencies

USD/CAD: Fed Expectations and Obama Compromise Weaken US Dollar

The Federal Reserve is expected to announce today an expansion of its asset purchases program that is likely to weaken the valuation of the US dollar versus the Canadian currency. Hopes also continue to rise as talks concerning a fiscal cliff deal are believed to be making progress.

CurveAheadMarketStrategies.com Morning Coffee Break

U.S. stock indexes printed small gains yesterday as market participants begin to focus on the two day Federal Reserve meeting.  Analysts are looking for policymakers to provide further monetary stimulus – QE4? However, the Fed watchers will also be watching for any signs of deal or lack of deal concerning the fiscal cliff.

FOREX Market Analysis

AUDUSD is facing the support of the upward trend line on 4-hour chart, a clear break below the trend line support will indicate that the uptrend from 1.0287 has completed at 1.0515 already, then the following downward movement could bring price back to 1.0000 zone. On the upside, as long as the trend line support holds, the fall from 1.0515 could be treated as consolidation of the uptrend, and one more rise to 1.0550 area is still possible.

CurveAheadMarketStrategies.com Morning Coffee Break

U.S. markets are coming off a meager up week with the Dow Jones and S&P 500 closes the in the green the last 3 session prior to the weekend.  The NASDAQ, however, is having difficulties with its largest component Apple (AAPL, quote) continues to struggle. 

FOREX Market Analysis

AUDUSD stays above a upward trend line on 4-hour chart, and remains in uptrend from 1.0287. As long as the trend line support holds, the uptrend could be expected to continue, and further rise to 1.0550 area is still possible. On the downside, a clear break below the trend line support will suggest that a cycle top has been formed at 1.0515, and the uptrend has completed, then the following downward movement could bring price back to 1.0000 zone.

FOREX Market Analysis

EURUSD breaks below the lower line of the price channel on 4-hour chart, suggesting that a cycle top has been formed at 1.3125 and the uptrend from 1.2661 has completed. The pair is now in downtrend from 1.3125, further decline could be expected and next target would be at 1.2850-1.2900 area. Key resistance is at 1.3125, only break above this level could trigger another rise towards 1.3500.

FOREX Market Analysis

EURUSD may be forming a cycle top at 1.3125 on 4-hour chart. Range trading between 1.3000 and 1.3125 would likely be seen in a couple of days. Support is now located at the lower line of the price channel, as long as the channel support holds, the fall from 1.3125 could be treated as consolidation of the uptrend from 1.2661, one more rise towards 1.3500 is still possible after consolidation, only a clear break below the channel support could signal completion of the uptrend.

EURUSD FXE

Traders start out the week with the U.S. dollar broadly lower against the major currency pairs.  The moves comes on the hope the U.S. policymakers can reach a deal before the fiscal cliff deadline which in turn pushed sentiment toward risk appetite assets and away from the safety of the U.S. dollar.

EURUSD FXE

A portion of this post was published also in the public section Traders start out the week with the U.S. dollar broadly lower against the major currency pairs.  The moves comes on the hope the U.S. policymakers can reach a deal before the fiscal cliff deadline which in turn pushed sentiment toward risk appetite assets and away from the safety of the U.S. dollar.

U.S. Dollar Trading Higher Against Yen

The U.S. Dollar is trading higher against the Japanese Yen during the mid-morning U.S. session going into the weekend.