30 March, 2016
Janet Yellen's dovish remarks yesterday sent the US Dollar weaker. Her comments starkly contrast the other Fed officials' speeches over the past few weeks which managed to support the US Dollar to make steady gains. Most of the USD crosses managed to rise higher following the Fed Chair's remarks, but the NFP data this Friday will likely be the next big event that markets will be looking forward to. A beat on the estimates could see the Dollar regain its bullish momentum but until then, markets could remain range bound.
EURUSD Daily Analysis
EURUSD (1.12): EURUSD managed to reverse the losses over the past week with a strong bullish candlestick, which came after a bullish engulfing pattern. The upside is however limited as noted in yesterday's commentary with 1.130 resistance likely to hold ground. EURUSD could remain range bound at 1.13 and 1.12 levels into Friday's NFP report. Above 1.130, EURUSD could be looking at posting further gains towards 1.15 region, while to the downside, 1.110 and 1.10 will be the support levels to watch for.
USDJPY Daily Analysis
USDJPY (112.40): USDJPY formed a bearish engulfing pattern yesterday, and price action is likely to move lower. Watch 112.0 support to the downside. A break below 112.0 could see USDJPY move back to 17th March lows towards 110.6 - 111.0. The 4-hour chart shows the Stochastics likely to point towards a modest pullback in prices ahead of targeting the 112.0 support, but the upside remains limited for now.
GBPUSD Daily Analysis
GBPUSD (1.43): GBPUSD has enjoyed a second strong bullish day with prices closing near 1.438 and in the process the inverse head and shoulders pattern has been formed. A breakout above 1.443 will validate the move to the upside for a test to 1.4635 resistance. On the 4-hour chart, there is scope for a pullback to the recent rally formed by the doji candlestick pattern and a failure to establish support below. Any dips will see GBPUSD test the 1.4263 - 1.4247 support.
Gold Daily Analysis
XAUUSD (1236): Gold prices attempted to rally back to the $1250 handle, but price action has stalled near the 1246 - 1238 level of support/resistance. A daily close below 1238 would confirm the downside bias for Gold to test the $1200 level ahead of which, 1230 - 1225 will be an important test. A move to the $1200 is likely only on a break below this minor support level, and if prices fail to close below the previous low and instead form a higher low, Gold could remain range bound at 1225 - 1250 levels.
The Institute of Supply Management's business survey covering the manufacturing and non-manufacturing sector showed that activity...
Amid the rising threat of trade wars and the optimism of the looming U.S. and China trade talks, the U.S. President Trump hit out at the Federal Reserve last week...
Japan's economy was seen rising more than expected in the three months ending June 2018. Growth was helped by strong...
The U.S. Federal Reserve Governor, Jerome Powell, gave his two-day testimony to the U.S. Congress last week. In this testimony, Powell cautioned...
The common currency which had fallen sharply over the past few weeks and was eventually seen hovering above the support level of 1.1540 level was seen...
The U.S. dollar fell sharply across the board yesterday after the U.S. President Trump in an interview...
The U.S. dollar lost ground yesterday amid a slow trading day with lack of any clear catalysts for the markets. The speech by Janet Yellen did not offer anything new for the markets...
Mexico's inflation is likely to be boosted higher as the government announced that it would be hiking fuel prices by nearly one-fifth from January. The government said that fuel price ceilings will be capped between 14.2% - 20% above December's prices...
The Institute of Supply Management's Purchase Managers Index data is one of the most widely watched indicators. It is considered to be a leading indicator which gauges the strength in the U.S. manufacturing sector...