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Flash: Neutral Carney pushes Cable higher - OCBC Bank


 

 

 

 

FXstreet.com (Barcelona) - Emmanuel Ng, FX Strategist at OCBC Bank notes that Carney’s neutrality propelled GBP/USD above 1.6400 last week.

 

Key Quotes

 

“Neutral to positive rhetoric from the BOE’s Carney on Monday propelled the GBP/USD higher past 1.6400.” 

 

“In the near term, the pair may continue to push the envelope on the upside with the 1.6450 area 

seen as an initial resistance, while the pair may also need to exhibit resilience on any retracement towards 1.6300 to meaningfully retain its recent gains.”

 

 

 


 

 

Dec 10,2013

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US: NFIB Business Optimism Index (Nov.) rose to 92.5


 

 

 

 

FXstreet.com (Edinburgh) - The National Federation of Independent Business informed that the small-business optimism index climbed to 92.5 for the month of November, leaving behind October’s 91.6 and exceeding the forecasts at 92.3.

 

 


 

 

Dec 10,2013

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USD/JPY finds support at 102.40 and trades back at 102.65


 

 

 

FXstreet.com (San Francisco) - After declining around 55 pips from 102.95 to test fresh daily lows at 102.40 in the European session, the USD/JPY seems to have found support at this level with the pair trading back above the 102.50 area at 102.70. 

 

Currently, the USD/JPY is trading around 102.65, 0.05% negative on the day. The short term perspective is strongly bearish according to the FXstreet.com Trend Index in the 1-hout chart. MACD, CCI and Momentum are pointing to the south while the Stochastic is neutral. 

 

USD/JPY levels

 

Above the 102.70, the USD/JPY would face resistances at 102.95 (daily high), 103.40 (Dec 10 high) and 103.55 (May 23 high). On the downside, immediate supports at 102.40 (daily low), 102.00 (psychological level) and 101.63 (Dec 5 & 6 lows).

 

 


 

 

Dec 11,2013

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USD/CHF falls to test 2-year lows at 0.8850


 

 

FXstreet.com (San Francisco) - The US dollar resumed its decline against the Swiss Franc in the last hour after trading sideways in between 0.8865 and 0.8885 during the European session. With the American open, the USD/CHF declined fast to test the lowest level since November 2011 at 0.8850. 

 

Currently, the USD/CHF is trading at 0.8855, 0.20% down on the day. The short term perspective is slightly bearish according to the FXstreet.com trend index in the 1-hour chart. CCI and Momentum are pointing to the south while the MACD and the Stochastic are neutral. 


USD/CHF levels:

 

Below the 0.8850, the USD/CHF would face supports at 0.8810 and 0.8800. On the upside, resistances are at 0.8880, 0.8900 and 0.8930.

 

 


 

 

Dec 11,2013

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Flash: USD/JPY stalling just ahead of the 103.74 2013 high - Commerzbank


 

 

FXstreet.com (London) - Karen Jones, Head of Technical Analysis at Commerzbank notes that USD/JPY has again stalled at 103.40, similar to price action seen last week. 

 

Key Quotes:

 

“The market appears to be stalling just ahead of the 103.74 2013 high. We note the Elliott wave count on the daily chart suggests a retracement back to 100.91/100.16 remains viable, however while underpinned by the cloud on the 240 minute chart at 102.26, we will assume an immediate upside bias. 

 

The slide lower held over the July 2013 high at 101.54 and this we regard as bullish price action. Support is found at the 101.54 July high and 100.62 September high. We will stay bullish while above the 99.56 November 19 low.”

 

“Longer term, the market has recently broken up from a large triangle points to a longer term target of 108.86. We have an additional target en route at 105.48, the 61.8% retracement of the move down from 2007.”

 

 

 


 

 

Dec 11,2013

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Flash: USD/JPY stalling just ahead of the 103.74 2013 high - Commerzbank


 

 

FXstreet.com (London) - Karen Jones, Head of Technical Analysis at Commerzbank notes that USD/JPY has again stalled at 103.40, similar to price action seen last week. 

 

Key Quotes:

 

“The market appears to be stalling just ahead of the 103.74 2013 high. We note the Elliott wave count on the daily chart suggests a retracement back to 100.91/100.16 remains viable, however while underpinned by the cloud on the 240 minute chart at 102.26, we will assume an immediate upside bias. 

 

The slide lower held over the July 2013 high at 101.54 and this we regard as bullish price action. Support is found at the 101.54 July high and 100.62 September high. We will stay bullish while above the 99.56 November 19 low.”

 

“Longer term, the market has recently broken up from a large triangle points to a longer term target of 108.86. We have an additional target en route at 105.48, the 61.8% retracement of the move down from 2007.”

 

 

 


 

 

Dec 11,2013

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AUD/USD ‘down under’ 0.9000 on RBA comments


 

 

FXstreet.com (Barcelona) - Following better than expected Australian Employment numbers, but a marginally increasing Unemployment Rate, AUD/USD has plunged past the key 0.9000 level following comments from the RBA’s Stevens.

 

AUD/USD heading ‘down under’

 

Overnight, AUD/USD spiked to post a daily high at 0.9081 on better than expected employment data, which saw a significant jump in Employment Change, but a small increase in the Unemployment rate to 5.8% from 5.7%. The spike was short lived, making a low at 0.9010, but spot climbed throughout the European session to post a session high at 0.9067. 

 

However, the RBA’s Stevens has taken to the wires to declare that he feels the currency is overvalued, and wants the currency as low as possible to spur the economy on. Gerry Davies of FXBeat comments, “Australia needs A$ closer to 85 cents, and A$’s natural level is seen as lower than the current rate.” This caused spot to plunge past 0.9000 to post a low at 0.8960. Nevertheless, better than expected US Retail Sales registered alongside a worsening Initial and Continuing Jobless pairing, and spot has found some near time support at 0.8970, down -0.89% on the days trading.

 

What are today’s key AUD/USD levels?

 

Hourly RSI sits at 22, in oversold territory, with ADX at 38. The hourly 200 SMA sits at 0.9086, sloping lower, with the daily 20 EMA at 0.9176 and bearish. Gerry Davies of FXBeat notes that there are buy orders clustered around 0.8950/60. Today’s central pivot point can be found at 0.9087, with support below at 0.9011 (S1), 0.8969 (S2) and 0.8893 (S3) and resistance at 0.9129 (R1), 0.9205 (R2) and 0.9247 (R3). Dark Cloud Cover, and Engulfing Bearish.Candlestick patterns can be found on the daily chart.

 

 


 

 

Dec 12,2013

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Flash: Bernanke to step down early?

 

 

FXstreet.com (London) - Strategist at BBH said reports indicate that the entire Senate vote on Yellen's nomination is likely to be held next week. 

 

Key Quote:

 

This may not be in time for the FOMC meeting, but it does strengthen our base scenario that Bernanke steps down early and Yellen chairs the late January FOMC meeting.

 

 

 

 

Dec 12,2013

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AUD/USD awaiting FOMC and remains range bound


 

 

FXstreet.com (London) - AUD/USD has stuck to a range on the 0.89 handle and between 0.8909 and the 0.8950’s.

 

The AUD is still trading on the lows after falling on headlines that 'RBA’s Stevens says Australia needs AUD/USD closer to 85 U.S cents. The calendar is very light today at the end of a long week and it seems like traders are sitting on their hands waiting for the FOMC outcome which is still some way off next Wednesday. There is a growing consensus that is looking for a token taper next week of $5-10b. 

 

AUD/USD Levels

 

The 20 DMA is 0.9158, the 50 DMA is 0.9361 and the 200 DMA is 0.9558. RSI (14) reads 46.21. Supports are ascending from 0.8770, 0.8830, 0.8848, 0.8891. Spot is 0.8938 while resistances are 0.8989, 0.9011, 0.9083 and 0.9125.

 

 


 

 

Dec 13,2013

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Flash: EUR weak, with eyes on next week’s inflation print - Scotiabank


 

 

FXstreet.com (Barcelona) - Camilla Sutton, Chief FX Strategist, at Scotiabank notes that EUR is weak, down 0.2% on a broader USD strengthening move. 

 

Key Quotes

 

“Fundamental data was mainly second tier, with next week’s inflation print a key upcoming risk.” 

 

“Highlighting one of the several factors that has supported EUR this year is the ongoing narrowing in the ECB balance sheet partially driven by LTRO repayments (with the ECB announcing today that €23bn of LTROs will be repaid next week); while the Fed’s balance continues to grow at a pace of $85bn per month.” 

 

“As we move towards the AQR rumours of repatriation and balance sheet preparation are likely to increase.”

 

 


 

 

Dec 13,2013

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Flash: How will the AUD fair in Chinese data?


 

 

FXstreet.com (London) - The AUD has suffered heavy losses since ’RBA’s Stevens says Australia needs A$ closer to 85 U.S cents’ and there has been little data of late for markets to digest for Australia. However, strategists at BBH noted that over the weekend, HSBC flash China manufacturing PMI will be reported. 

 

Key Quotes:

 

“This will be the first reading for December, and consensus is 50.9 vs. 50.8 final in November”. 

 

“We expect the Chinese economy to maintain its modest growth path into 2014. Indeed, consensus right now is GDP growth of 7.6% y/y in Q4, which follows 7.8% growth in Q3. Growth is seen at 7.6% in Q1 2014 before slowing further to 7.5% in Q2, 7.4% in Q3, and 7.35% in Q4”. 

 

“Despite the modest growth profile, it appears the authorities are prepared to allow further modest yuan appreciation in the coming months”.

 

 

 


 

 

Dec 13,2013

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Session recap: Dollar extends the swing ahead FOMC


 

 

 

 

FXstreet.com (San Francisco) - The US Dollar extended gains for second day against the Euro and for third session against the Pound as investors remain cautious ahead the Federal Reserve policy meeting next week. However, it is too early to talk about a top in place in EUR/USD and GBP/USD.

 

As FXstreet.com's Valeria Bednarik said in a recent report, "taking a look at the daily chart, one may think a double top is under way around the 1.3810/30 highs from October and December, albeit a better look shows the valley in between both, and the level to be broken to confirm the figure, stands at 1.3290."

 

In a bigger chart, the EUR/USD advanced for fifth week in a row after posting only two negative sessions in the last nine days. The EUR/USD declined on Friday to test lows at 1.3710 but it managed to close at 1.3740. 

 

Other picture in the GBP/USD as the Cable declined for second week to close at 1.6290. The Sterling just closed below the 1.6300, level that used to be support in the previous days. The USD/JPY advanced for seventh consecutive week; the pair reached 5-year highs at 103.91 on Friday, but it felt vertigo and closed off highs at 103.30.

 

Main headlines in the American session:

 

US: Producer price index drops 0.1% in November

 

Goldman: Don't bet on much dollar strength in 2014 despite Fed tapering

 

FXBeat Weekend Read: A fresh set of eyeballs on the AUD/NZD

 

CFTC Commitments of Traders: Big bets against the Canadian dollar

 

Wall Street declines for second week ahead FOMC meeting

 

 


 

 

Dec 14,2013

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EUR/GBP rises toward 1-month high


 

 

 

 

FXstreet.com (Córdoba) - The EUR/GBP bounced off lows and erased intraday losses as the shared currency got a boost from better-than-expected Eurozone PMIs.

 

The EUR/GBP climbed to a high of 0.8439 but stalled a few pips shy of its 1-month high scored during the Asian session at 0.8442. At time of writing, the cross is trading at the 0.8435 zone, 0.2% above its opening price, ahead of the Eurozone trade balance figures.

 

EUR/GBP technical levels

 

In terms of technical levels, if the EUR/GBP breaks decisively above 0.8442, next resistances could be found at 0.8460/63 (100-day SMA/Nov 13 high) and 0.8475 (Nov 4 high). On the other hand, supports are seen at 0.8413 (daily low) and 0.8400 (psychological level) followed by 0.8390 (Dec 12 low).

 

 


 

 

Dec 16,2013

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US: Markit Manufacturing PMI edges lower in December (Prelim.)


 

 

 

 

FXstreet.com (Córdoba) - The preliminary reading of the US Markit Manufacturing PMI showed the sector expanded at a slower pace in December.

 

The Markit PMI decreased to 54.4 from 54.7 the previous month and missed expectations around 54.9, but held in expansionary territory above the 50.0 threshold.

 

 


 

 

Dec 16,2013

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USD/CHF double bottom pattern attempt?


 

 

 

 

FXstreet.com (Chicago) - USD/CHF continues trading below the 0.89 zone although a reverse attempt seems to be consolidating shortly after the opening of the American trading session.

 

The most recent data releases reveal mixed US results while the stock markets open strong with the Dow up 0.51%, Nasdaq 0.49% stronger and S&P 0.46% higher.

 

USD/CHF Technical Levels

 

Technically speaking, the pair is offered at 0.8869 and oscillates between the supports aligned at 0.8840 (December 10th lows), 0.8789 (September 20th lows 2011) ahead of 0.8722 (May 15th lows 2011) and the resistances set at 0.8918 (December 13th highs), 0.8974 (December 6th highs) followed by 0.9031 (November 29th lows). According to the FXstreet.com trend index on one-hour timeframe analysis, the pair is strongly bearish and navigates below the EMA20. If the pair manages to pull off a reverse, a double bottom formation will be evidenced.

 

 


 

 

Dec 16,2013

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EUR/USD backs away from 1.3800


 

 

 

 

FXstreet.com (Córdoba) - The EUR/USD lost momentum and pulled back after testing the 1.3800 psychological level following the latest string of US data and amid Draghi's comments.

 

Speaking before the European Parliament, ECB President Mario Draghi said the bank is ready to consider all the available instruments as he stated that adjusting interest rates is not always sufficient to maintain price stability. On the data front, US industrial production increased by 1.1% in November, printing its biggest jump in a year. 

 

The EUR/USD retreated from a daily high of 1.3798 toward the 1.3760 zone before the 100-hour SMA offered support. At time of writing, the EUR/USD is trading at the 1.3765 area, still 0.3% above its opening price. 

 

EUR/USD levels to watch

 

As for technical levels, if the EUR/USD breaks decisively above 1.3800 (psychological level) it could rise to 1.3811 (Dec 11 high) en-route to 1.3732 (2013 high Oct 25). On the other hand, if the pair falls below 1.3760 (100-hour SMA) next supports are seen at 1.3727 (daily low), 1.3710 (10-day SMA) and 1.3693 (Dec 9 low).

 

 


 

 

Dec 16,2013

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Flash : EUR/USD, buoyed by data – TD Securities


 

 

 

 

FXstreet.com (London) - Strategists at TD Securities noted that the Eurozone flash PMI’s were overall better than the market was anticipating, keeping the EUR well supported this morning. 

 

Key Quotes:

 

“There are a number of data releases in the coming days in both Europe and the US that should make for some choppy price action in EUR/USD, as well as an EU leaders summit toward the end of the week, but the defining event for the pair this week should be Wednesday’s FOMC meeting”. 

 

“With that in mind, ‘taper talk’ will certainly be in focus in the next few sessions, but European bank funding developments are also important to keep an eye on. After the larger than expected LTRO repayment last week, Euribor has continued to edge higher, lending additional support to spot EUR/USD”. 

 

“We remain fundamentally bearish on the pair, but prefer to wait for clearer selling opportunities—perhaps closer to the turn of the New Year”.

 

 


 

 

Dec 16,2013

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GBP/USD finds support at 1.6255


 

 

 

 

FXstreet.com (San Francisco) - The Sterling seems to have found support against the US Dollar at 1.6255 after falling around 85 pips in the European morning. The GBP/USD bounced at the mentioned level to test 1.6290 area. 

 

Currently, the Pound to Dollar exchange rate is pricing at 1.6270, 0.20% negative in the day. The short term perspective is strongly bearish according to the FXstreet.com Trend Index in the 1-hour chart. MACD, CCI and Momentum are pointing to the south while the Stochastic is neutral. 

 

GBB/USD technical levels

 

Above the 1.6290, the GBP/USD would face resistances at 1.6300, 1.6335 and 1.6350. On the downside, next supports are at 1.6255, 1.6240 and 1.6120.

 

 


 

 

Dec 17,2013

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US: NAHB Housing Market Index increases to 58 in December


 

 

 

 

FXstreet.com (Barcelona) - The US NAHB Housing Market Index grew to 58 in December, from 54 in November, according to data released by the National Association of Home Builders. Analysts expected the indicator to rise only to 55.

 

 

Dec 17,2013

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Flash: Don't expect FOMC taper - Societe Generale


 

 

 


FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale doesn’t think the FOMC will ‘taper’ its bond purchases today (why risk volatility in illiquid year-end markets?) 

 

Key Quotes

 

“We do expect a very strong hint that the move is coming in January and I also think tapering is now 90% priced in to asset markets.” 

 

“There is a press conference after the meeting (19:30 GMT) and that allows for hints on changes to the forward guidance framework, as well as a chance to reinforce the familiar ‘tapering is not tightening’ message.” 

 

Flash: Don't expect FOMC taper - Societe Generale

 

 


 

 

Dec 18,2013

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Flash: COT EUR sentiment improved for second week - Scotiabank


 

 

 

FXstreet.com (Barcelona) - Camilla Sutton, Chief Currency Strategist at Scotiabank notes that sentiment towards EUR has improved for the second consecutive week. 

 

Key Quotes

 

“The net long position now stands at $2.7bln - modest relativ to its October high but still the largest among its peers.” 

 

“Details are suggestive of increasing risk appetite, as both gross long and gross short positions are rising.”

 

 


 

 

Dec 23,2013

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