Daily Forex Preview - 12/11

November 12, 2014

Yesterday’s trading session was quiet with lack of fundamentals and the North American session closed on account of Veteran’s day. However, the Yen pairs were the news makers as the currency weakened considerably on rumors of Japanese Premier Shinzo Abe calling for snap elections in December and speculation of a delay to the proposed sales tax hike according to news reports from a local news outlet.

The Yen turned around this morning as Japan’s Chief Cabinet Minister Yoshihide Suga said that they were not preparing for any elections and neither was there any proposal to delay the sales tax hike.

Late last night, the RBNZ released its financial stability report. The Kiwi Dollar managed to strengthen as the report served to remind that markets of the tightening cycle and that the RBNZ was prepared to raise interest rates when necessary. Governor Wheeler however did mention that the Kiwi dollar was unjustifiably high and future declines will be based on significant appreciation of the US Dollar.

Fundamentals Recap – November 11, 2014

Fundamentals – November 12 2014

EURUSD Daily Pivots

R3

1.2621

R2

1.2559

R1

1.2516

Pivot

1.2454

S1

1.2411

S2

1.235

S3

1.2307

EURUSD managed to close higher in a turnaround towards the US session, forming a higher low. The pair now trades as a critical level as seen from the above charts, in what looks to be shaping out to be a falling wedge pattern with a potential to the upside. However, resistance near 1.2527 needs to be cleared to aim for further upside gains. Alternatively, a close below the daily support level 1 at 1.2411 is required for the EURUSD to position itself for more declines.

USDJPY Daily Pivots

R3

117.844

R2

116.974

R1

116.377

Pivot

115.507

S1

114.906

S2

114.040

S3

113.433

While the Yen weakened yesterday’s today’s news seems to have breathed some life in the Yen. In the above chart, we notice the minor trend line being broken and retested which if validated by a close below today’s pivot could see USDJPY decline towards the daily support 1 level at 114.91. The risks however come from the fact that the latest price action is forming a bullish flag pattern, which itself could be invalidated on a decline to 114.91. Alternatively, a rally above 115.9 region could see further upside gains on the cards for USDJPY.

GBPUSD Daily Pivots

R3

1.6073

R2

1.6008

R1

1.5962

Pivot

1.5899

S1

1.5853

S2

1.5788

S3

1.5742

GBPUSD’s price action is somewhat akin to that of the EURUSD but with the key risks coming from today’s unemployment data and the BoE inflation hearing. Key resistance at 1.6 levels will have to be cleared for any possibility of further upside gains, while a close below the daily support level 1 at 1.5835 is essential to pave way for declines towards the target of 1.574.

Guest post by Orbex

Publication source
Orbex information  Orbex reviews

September 23, 2016
Risk rating
The market is in need of a new narrative. The Fed meeting in December is too far off and for now, the US election is not something that entices excitement. With central banks on hold, markets are pushing the envelope in terms of risk...
September 23, 2016
Greenback regains some ground
On Friday, the evergreen buck regained some ground against other key currencies, as markets kept digesting the Fed’s latest policy decision...
September 23, 2016
Dollar rebounds slightly as precious metals are in a hot zone
The US Dollar rebounds after a substantial selloff led by the FOMC decision to leave the interest rate unchanged. The Dollar index, which tracks the US currency against major peers, recoiled with support at a 95.00 level on Thursday, adding 0.05% to the 95.36 price in the early Friday session...

Grand Capital Rating
XM Rating
FBS Rating
FIBO Group Rating
Vantage FX Rating
Larson&Holz IT Ltd Rating

Empire Option Rating
Porter Finance Rating
OptionsXO Rating
Banc De Binary Rating
OptionTrade Rating
365BinaryOption Rating