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EUR/USD consolidates below 1.3700


 

 

 

FXstreet.com (Córdoba) - The EUR/USD extends its consolidative pattern Monday amid thin markets during the last full trading day before the Christmas Holiday.

 

The EUR/USD edged higher and touched a high of 1.3694 during the Asian session but the pair failed to break above the 1.3700 mark as momentum was weak and it was confined to a slim range. The EUR/USD is currently trading at the 1.3675 zone, virtually unchanged on the day, having climbed off a 2-week low of 1.3624 on Friday.

 

EUR/USD technical levels

 

As for technical levels, the EUR/USD could find immediate supports at 1.3665 (daily low/21-day SMA), 1.3650 (Dec 19 low) and 1.3624 (Dec 20 low). On the upside, resistances could be faced at 1.3694 (daily high), 1.3708 (Dec 20 high) and 1.3725 (10-day SMA).

 

 


 

 

Dec 23,2013

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US: Chicago Fed National Activity Index rises 0.60 in November


 

 

 

FXstreet.com (Córdoba) - The Federal Reserve Bank of Chicago informed that the National Activity Index rose to 0.60 during November, up from October's -0.07 (revised from -0.18).

 

 

 

 


 

 

Dec 23,2013

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USD/CAD hits 6-day low


 

 

 

FXstreet.com (Córdoba) - The Canadian dollar strengthened Monday and dragged the USD/CAD to a 6-day low amid a softer greenback and helped by better-than-expected Canadian GDP.

 

The USD/CAD broke below the 1.0600 mark and dropped to its lowest level in almost a week at 1.0589, although it found support a few pips above last week's low and settled in a range over the last hours. At time of writing, the USD/CAD is trading at 1.0600, recording a 0.4% loss on the day.

 

USD/CAD technical levels

 

In terms of technical levels, the USD/CAD could find immediate supports at 1.0589/85 (Dec 18 low/psychological level) and 1.0571 (Dec 16 low). On the flip side, resistances are seen at 1.0652 (daily high), 1.0670 (Dec 9 high) and 1.0700 (psychological level).

 

 

 

 


 

 

Dec 23,2013

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EUR/USD eases some, still frozen


 

 

 

FXstreet.com (Buenos Aires) - The EUR/USD eases some over the European morning, but for the most unchanged in ultra thin holiday’s markets. Trading within yesterday’s range, the pair is down on the day, having found some short term support around in 1.3671 daily low, but holding below the 1.3700 level. Anyway, current lack of action will probably extend for the rest of the week, leaving short term traders adrift.

 

Bottom confirms a long

 

The steady rise of the pair ever since testing 1.3290 following ECB rate cut past November 7th, seems to have now confirmed more longs ahead, according to Fan Yang, from FXTimes, as the pair reached a “bottom of its price channel and a previously established horizontal support level. This week starts off with the confirmation I was looking for to go long. So, I’ve got my order placed at 1.3650 to go long, with my stop 70 pips below at 1.3580, and a target of 1.4140. I’m seeking 490 pips and risking 70, thus offering a reward/risk of 7:1.”

 

 

 


 

 

Dec 24,2013

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US: Mortgage applications extend decline


 

 

 

FXstreet.com (Córdoba) - Applications for mortgages fell 6.6% in the week ending Dec 20, the Mortgage Bankers Association said Wednesday.

 

This reading comes after a 5.5% drop the previous week.

 

 

 


 

 

Dec 24,2013

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USD/CHF hits fresh highs but loses momentum


 

 

 

FXstreet.com (Córdoba) - The USD/CHF pushed higher and printed fresh daily highs during the American session as the greenback gained momentum following strong US data.

 

However, moves remain shy in holiday-thinned trade with USD/CHF slowing after hitting a 4-day high of 0.8971. At time of writing, the USD/CHF is trading at 0.8965, recording a 0.3% gain on Tuesday.

 

USD/CHF technical levels

 

In terms of technical levels, the USD/CHF might face resistances at 0.8971 (daily high), 0.9000 (psychological level) and 0.9048 (Dec 5 high). Meanwhile, supports are seen at 0.8915 (10-day SMA), 0.8900 (psychological level) and 0.8840 (Dec 18 low).

 

 

 


 

 

Dec 24,2013

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Flash: USD/JPY: Onwards and Upwards - TD Securities


 

 

FXstreet.com (Córdoba) - The BoJ is the only major monetary authority to outdo the Fed in terms of aggressive easing initiatives in 2013, and with the Fed set to trim stimulus through 2014, the divergence should become even more prominent, commented the TD Securities analyst team. 

 

Key Quotes

 

"That should underpin even further highs in USD/JPY over the course of the next year".

 

"Our target for a year from now is 110, though the risk to that forecast is for an overshoot". 

 

"At the start of 2014, 105.00/50 will be the first major hurdle".

 

 

 


 

 

Dec 24,2013

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Wall Street closes higher ahead Santa's visit


 

 

FXstreet.com (San Francisco) - The US stocks market closed positive ahead of Christmas's break following the better-than-expected data in the United States. Investors are confidence in the US economic recovery. 

 

The Dow and S&P closed at new record highs while the Nasdaq close at fresh 13-year highs. 

 

The Dow Jones advanced 62.94 points or 0.39% to close the day at 16,357.55; the S&P 500 added 5.33 pts or 0.29% to finish at 1,833.32; and the Nasdaq Composite won 6.51 pts or 0.16% to 4,155.42.

 

 

 


 

 

Dec 24,2013

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USD/CHF hovering above 0.8900


 


FXstreet.com (Córdoba) - The USD/CHF is taking a breather, consolidating in a narrow range around 0.8900 Monday, after slumping to a 2-year low of 0.8800 last Friday.

 

The USD/CHF dropped more than 150 pips Friday and printed a low of 0.8800 but bounced strongly and trimmed losses as the dollar recovered ground across the board during the American afternoon. The USD/CHF finally settled above 0.8900 where it has spent most of the day. At time of writing, the USD/CHF is trading at 0.8905, little changed since opening.

 

USD/CHF technical outlook

 

"Although USD/CHF plunged more than 150 pips on Dec 27, it recovered most of the losses the same day and managed to settle above the monthly S2", says the Dukascopy Bank Team. "At the moment the pair is challenging 0.8930 and in case of success may set a new objective at 0.8991/75, where the six-month down-trend resistance merges with the monthly S1, a fact that makes a breach of this area a low-probability event".

 

 

 


 

 

Dec 30,2013

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Brazilian real shows little reaction after Rousseff's televised address


 

 

 

 

FXstreet.com (London) - The Brazilian real has shown little reaction so far following Brazilian President Dilma Rousseff’s televised address yesterday evening which focussed on talking up the country’s economy.

 

Rousseff’s end-of-year speech skirted around the public demonstrations that dogged the government in the summer, and instead took and extremely optimistic stance on the country’s economy. Rousseff claimed that her government had been strongly criticised over its handling of the economy because of her government is the victim of "psychological warfare" by the business community. Despite this, Rousseff conceded that she had been forced to "retouch" and "correct" the economy.

 

Addressing her detractors, Rousseff said that: "If we dive into pessimism and stay trapped in petty disputes, we will have a smaller country."

 

In reference to the county’s price rises, Rousseff stated that: “The government is alert and steadfast in its commitment to fight inflation and maintain the balance of public accounts.” 

 

Brazilian inflation once again ran above the Banco Central do Brasil’s 4.5 percent inflation target, with November CPI printing at 5.77 percent.

 

BRL/USD is currently trading at USD0.4283, up 0.23 percent on the day on thin trading.

 

 

 


 

 

Dec 30,2013

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EUR/USD advances toward 1.3800


 

 

 

 

FXstreet.com (Córdoba) - The EUR/USD edged higher and printed fresh daily highs at the beginning of the New York session as the dollar weakens slightly along with US yields.

 

The EUR/USD managed to overcome the 1.3770 zone and rose to a fresh daily high of 1.3788 in recent dealings. At time of writing, the EUR/USD is trading at the 1.3780 zone, recording a 0.2% gain on the day ahead of the next string of US data.

 

EUR/USD technical outlook

 

"The big ramp up in EUR/USD though seen Friday has been partially reversed at least today, leaving the 1.38 area as still looking like a zone of fairly strong resistance", says the TD Securities team. "The EUR spike higher came in thin liquidity conditions but the market is clearly reluctant to push the EUR significantly lower at the moment. ECB President Draghi’s remark that there was no urgent need to cut rates again provided some support for the EUR in overnight trading but we continue to view current levels as expensive from a fundamental and technical perspective and we expect the EUR to weaken gradually in the New Year".

 

 

 


 

 

Dec 30,2013

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Schaeuble: Greek EU presidency is an opportunity for Greece and for Europe


 

 

 

 

FXstreet.com (Łódź) - German Finance Minister Wolfgang Schaeuble said on Monday in an interview for the Bild newspaper that Greece would get all the support it needs from the European Union and that taking over the EU presidency will be a “huge opportunity for the country and for Europe." 

 

"The presidency will show the Greek people that Europe is its future," as it will spur “identity, self-confidence, pride” Schaeuble said. 

 

He discarded the possibility of Greece taking advantage of its EU presidency to ease the conditions of the intentional bailout. He also rejected further debt writedowns for the country, signaling however that Greece could get more aid. 

 

Moreover, the German Finance Minister commented on the easy monetary policy of central banks, which “can't last forever” and stated that first signs of the decline in the European money supply are apparent. 

 

The interview has been published following an attack by unidentified gunmen on the German ambassador’s residence in Athens on Monday morning. No one was hurt in the incident. 

 

 

 


 

 

Dec 30,2013

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Schaeuble: Greek EU presidency is an opportunity for Greece and for Europe


 

 

 

 

FXstreet.com (Łódź) - German Finance Minister Wolfgang Schaeuble said on Monday in an interview for the Bild newspaper that Greece would get all the support it needs from the European Union and that taking over the EU presidency will be a “huge opportunity for the country and for Europe." 

 

"The presidency will show the Greek people that Europe is its future," as it will spur “identity, self-confidence, pride” Schaeuble said. 

 

He discarded the possibility of Greece taking advantage of its EU presidency to ease the conditions of the intentional bailout. He also rejected further debt writedowns for the country, signaling however that Greece could get more aid. 

 

Moreover, the German Finance Minister commented on the easy monetary policy of central banks, which “can't last forever” and stated that first signs of the decline in the European money supply are apparent. 

 

The interview has been published following an attack by unidentified gunmen on the German ambassador’s residence in Athens on Monday morning. No one was hurt in the incident. 

 

 

 


 

 

Dec 30,2013

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EUR/USD hits fresh 2-week low


 

 

 

 

FXstreet.com (Córdoba) - The EUR/USD edged a tad lower during the European session and touched a fresh 2-week low, before bouncing to mid-range.

 

Following a steep fall Thursday, the EUR/USD entered a quieter phase, although it stretched to a fresh low of 1.3627 before settling in a slim range just above. At time of writing, the EUR/USD is trading at the 1.3640 zone, still 0.2% below its opening price. The EUR/USD remains in a corrective phase after hitting a 2-year high of 1.3891 last week.

 

Up ahead during the New York session, several Fed members will speak, including Chairman Bernanke, who is ending his term in 4 weeks. "His remarks will be the main focus on Friday as the market will attempt to gauge the Fed's desire to further reduce the pace of QE purchases in coming months", says the TD Securities team.

 

EUR/USD levels to watch

 

In terms of technical levels, if the EUR/USD breaks below 1.3627 (daily low), next supports could be found at 1.3620 (Dec 6 low) and 1.3600 (psychological level). On the flip side, resistances are seen at 1.3671 (daily high), 1.3700 (psychological level) and 1.3720 (20-day SMA).

 

 

 


 

 

Jan 03, 2014

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Dollar climbs ahead of Fed speeches


 

 

 


FXstreet.com (London) - The dollar continues to consolidate yesterday’s gains against the euro. The dollar climbed against the euro on the back of stronger-than-expected manufacturing PMI numbers which pushed EUR/USD to a low of USD1.3633 before rebounding towards the close of the session to USD1.3663.


EUR/USD is currently trading at USD1.3642, down 0.14 percent in choppy trading. The pair has recovered from an intraday low of USD1.3628, driven by European Central Bank data which indicated that private sector lending continues to contract in the Eurozone.

 

Markets remain thin with quiet holiday trading carrying into the New Year as a result of a winter storm set to hit the northeast coast of the US.

 

With little in the way of market-moving data set for release, eyes and ears will be on Fed officials scheduled to speak at a conference in Philadelphia this afternoon (GMT), including Charles Plosser, Jeremy Stein and Ben Bernanke. Jeffrey Lacker is scheduled to speak later at a separate event in Baltimore.

 

Of particular interest will be outgoing Fed chairman Ben Bernanke who will handover control of the Federal Reserve to Janet Yellen on 31 January. With the minutes from the Fed’s December meeting being released next week, markets will be looking for an insight into the Fed’s schedule for rolling back its quantitative easing programme. In its December meeting, the Fed moved to taper its monthly asset purchases by USD10bn, leaving its monthly purchases at USD75bn, citing the strengthening US economic outlook. It is anticipated that the Fed will taper in further USD10bn increments, ending the programme before December 2014.

 

 

 


 

 

Jan 03, 2014

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GBP/USD turns south and threatens daily lows


 

 


FXstreet.com (Córdoba) - The GBP/USD climbed to fresh daily highs during the European session following the release of firm UK mortgage data, but failed to overcome that level and came under mild pressure.

 

The GBP/USD rose to 1.6473 but failed to sustain momentum and dipped back to the lower-side of today's range, although it has managed to hold above the 200-hour SMA so far, which has been offering dynamic support to the Cable. At time of writing, the pair is trading at the 1.6425 zone, 0.2% below its opening price.

 

GBP/USD technical outlook

 

From a technical perspective, Valeria Bednarik, chief analyst at FXstreet.com recently commented that failure to maintain gains should see bearish tone building, with a break below yesterday's low (1.6410) triggering a quick short term dip towards 1.6370. "Once below this latter, 1.6320/30 area comes next", Bednarik added.

 

 

 


 

 

Jan 03, 2014

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USD/CAD falls toward 1.0600


 

 

FXstreet.com (Córdoba) - The USD/CAD has resumed the slide after the latest recovery attempt was capped by the 1.0675 zone during yesterday's NY session. 


USD/CAD holding above 1.0600

 

The USD/CAD has pulled back sharply from highs as the greenback recedes on better risk sentiment, dropping to a low of 1.0601 so far. At time of writing, the USD/CAD is trading at the 1.0610 zone, recording a 0.5% loss on the day.

 

USD/CAD levels to watch

 

In terms of technical levels, if the USD/CAD falls below 1.0600, next supports are seen at 1.0587 (Jan 2 low) and 1.0580 (Dec 23 low). On the flip side, resistances could be found at 1.0677 (Jan 2 high), 1.0700 (psychological level) and 1.0726 (Dec 30 high).

 

 

 


 

 

Jan 03, 2014

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EUR/GBP rallies after services PMI numbers


 

 

 

 

 

FXstreet.com (London) - EUR/GBP has rallied after Eurozone composite Markit services PMI numbers matched expectations with gains on the November print. In contrast, the UK missed expectations, despite continuing to show solid expansion. The pair is currently trading at GBP0.8318.

 

Modest Eurozone growth despite fragility

 

The Eurozone composite posted a three-month high of 52.1 in December, up from 51.7 in November, and its second highest level in two-and-a-half years. The Markit report showed that manufacturing continued to lead the recovery. Growth of production accelerated to its fastest since May 2011, as new orders improved aided by a solid increase in new export business.

 

As may continue to be a running theme for 2014, carrying through from 2013, France and Italy were the rotten apples in the basket. French services again contracted, printing at 47.8, down from November’s 48.0. Italy posted 47.9, beating the November print of 47.2, but still indicating contraction.

 

UK misses expectations despite robust expansion

 

By contrast, the UK showed much more robust economic activity, but missed its higher expectations in comparison with the Eurozone. Expectations were for a slight gain on November’s print of 60.0, with the seasonally-adjusted headline business activity index coming in at 58.8, a six-month low.

 

The Markit report said that UK service sector continued to expand strongly as 2013 came to an end, with activity, new business and employment all again rising at marked rates. It indicated that confidence among service providers was at its highest in nearly four years.

 

Indication of potential upside wage pressure

 

The numbers also gave positive news for UK wages, which have continued to slump in real terms, despite a strongly improving UK macro picture. There was further evidence of capacity pressures in December, with backlogs of work rising for a ninth successive month. Many companies responded to rising workloads by adding to their payroll numbers at a marked pace. Employment rose for a twelfth successive month.

 

EUR/GBP rallies strongly on expectation miss

 

The pair is currently trading at GBP0.8318 after hitting highs at GBP0.8331. The pair is up 0.38 percent on the day after opening at GBP0.8284. The next major event will be German consumer price index numbers for December, due at 13:00 GMT.

 

 

 


 

 

Jan 06, 2014

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Flash: The Euro´s resilience is striking - BBH


 

 

 

 


FXstreet.com (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman notes that the euro is consolidating at the upper end of yesterday's range. 


Key Quotes

 

“Immediate resistance is seen in the $1.3655-75 area. The euro's resilience is striking.” 

 

“We note that EONIA, which peaked at the end of the year near 45 bp, is now below 10 bp. The US-German 2-year spread was just below 7 bp in mid-December and 17 bp today.”

 

 

 


 

 

Jan 07, 2014

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EUR/CAD’s bullish performance


 

 

 

 

FXstreet.com (London) - EUR/CAD has been one of the best performers on the session. 

 

Strategists at TD Securities explained that EURCAD’s recovery has taken back about half of last week’s sell off already this week. “The broader trend higher remains intact but the rally did hit a big technical roadblock with last week’s reversal from 1.48+ levels and short-term momentum has weakened considerably this week. The bounce from the mid 1.44 area (38.2% of the Nov/Dec rally and 28-day MA) ought not extend that much more if last week’s weekly bear reversal signal is to remain an influence on near-term price swings. Losses should extend below 1.4450 towards 1.41/1.42”.

 

EUR/CAD Levels

 

The 20 DMA is 1.4590, the 50 DMA is 1.4380, and the 200 DMA is 1.3820. RSI (14) reads 37.80. Supports are ascending from 1.4240, 1.4300, 1.4330, 1.4370, 1.4425, 1.4535. Spot is 1.4628 with resistances at 1.4660 and 1.4775.

 

 

 


 

 

Jan 07, 2014

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US's Lew praises German government for promoting domestic investment


 

 

 

 

FXstreet.com (Łódź) - On Wednesday US Treasury Secretary Jack Lew held a joint press conference with German Finance Minister Wolfgang Schaeuble in Berlin, during which he praied Europe's progress in overcoming the crisis in the banking sector and Germany's decision to boost domestic spending. 

 

“Over the course of this past year, I think we’ve seen very constructive movement to get the balance right between fiscal consolidation and growth,” Lew said “We can continue to discuss where that balance should be, but it’s moved in the right direction, from our perspective.”

 

The German Finance Minister assured that it was important for Germany to see the US economy strengthening. He also stressed the need of preventing the formation of asset bubbles.

 

"We must keep a watch on liquidity levels to ensure new bubbles aren't being created," Schaeuble said, adding however that monetary policy should be established by central banks, not politicians.

 

 


 

 

Jan 08, 2014

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Flash: The BoC unlikely to cut or hike rates in 2014 - Scotiabank


 

 

 

 

FXstreet.com (London) - Camilla Sutton, Senior FX Strategist at Scotiabank notes that the BoC is unlikely to cut or hike rates in 2014.

 

Key Quotes

 

“Governor Poloz’ interview on the Lang and O’Leary show sug‐gests that the BoC will not cut or hike rates this year; that Governor Poloz is focused on the Bank’s inflation mandate and that it is not focused on a level of CAD.” 

 

"The interview was neutral for CAD, but provides a succinct overview of Governor Poloz’ views and highlights that inflation releases will be important data points for CAD.“

 

 


 

 

Jan 08, 2014

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