The Latest in Forex News & Analysis.

Wholesale Inventories and Sales both rise

By | June 10, 2014 10:26 AM | 0 Comments

The US wholesale inventories for the month of April rose by 1.1% vs. 0.6% expectations. Wholesale trade sales were also stronger 1.3% vs. 0.9%. The prior month was revised higher to 1.6% from 1.4% originally reported. The inventory to sales ratio remained steady at 1.8 months.

In Q1 inventories subtracted 1.62% from GDP (GDP fell by -1.0% in Q1). A rise inventories, like we saw today, should be a positive for 2nd quarter GDP. This should be  positive for the US dollar.

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All information on this site is provided for informational and educational purposes only. Information provided is not to be misconstrued as trading advice. Past results are not indicative of future results. In addition trading in foreign exchange markets on margin carries a high level of risk, and may not be suitable for all individuals.The post is intended for clients and traders outside the US.

JOLTS Job Openings at highest level since September 2007

By | 10:10 AM | 0 Comments

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All information on this site is provided for informational and educational purposes only. Information provided is not to be misconstrued as trading advice. Past results are not indicative of future results. In addition trading in foreign exchange markets on margin carries a high level of risk, and may not be suitable for all individuals.The post is intended for clients and traders outside the US.

USDJPY falling below a cluster of support. Looking for momentum though….

By | 9:37 AM | 0 Comments

The USDJPY is trading around a cluster of support:

  1. 38.2% of the move up from May 29th low to the high on June 4th comes in at 102.266
  2. The 200 hour MA comes in at 102.267
  3. The 100 day MA comes in at  102.26

The price is trying for the second time today to push below this key support area. The first look below  could only get to 102.21. This move has once again tested that 102.21 level.   The sellers are in control, but they are looking for that momentum to kick in.  The 102.10 is the next target on the downside.

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All information on this site is provided for informational and educational purposes only. Information provided is not to be misconstrued as trading advice. Past results are not indicative of future results. In addition trading in foreign exchange markets on margin carries a high level of risk, and may not be suitable for all individuals.The post is intended for clients and traders outside the US.

 

ECB officials hitting the newswires

By | 9:22 AM | 0 Comments

The ECB officials will likely look to talk of easing and more to come as a way to keep the EUR from moving higher.  Today,ECB Liikanen, Makuch and Coeure all have spoken to this theme.  The EUR is the weakest of the major currencies today – falling against all it’s counter parties (see chart below).

For an article on the idea, see WSJ article at: http://online.wsj.com/articles/ecb-determined-to-contain-low-inflation-risk-1402387034?KEYWORDS=ECB

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All information on this site is provided for informational and educational purposes only. Information provided is not to be misconstrued as trading advice. Past results are not indicative of future results. In addition trading in foreign exchange markets on margin carries a high level of risk, and may not be suitable for all individuals.The post is intended for clients and traders outside the US.

EURUSD corrects off support low. Tests retracement

By | 9:08 AM | 0 Comments

On the ECB interest rate decision last Thursday, the EURUSD fell below trendline support on the hourly chart (see chart above). That break failed and the price rocketed back higher.

Yesterday and today we are seeing the EURUSD step lower in more controlled but trend like selling. Yesterday’s step lower found support near the 1.3585 level. This level corresponds with lows going back to May 28th. It is also near the 50% retracement of the move up from last Thursday’s low to the high that we saw on “US Employment Friday” (at 1.35892 – see chart above).

Today, the market broke from the 1 3585 level and moved down to the old support trendline (see chart above). Traders used the level to take some profit (or so it seems). Looking at the 5 minute chart below, the bounce has taken the pair to the 38.2% retracement area of the move down from today’s high to today’s low. Stay below this level in the bears remain firmly in control. Move above the 38.2% level, and then above the 50% retracement level at 1.35668 (see chart below), and the trend becomes suspect.

The burden on a trend is for the countertrend traders to prove that they can take back control. Until the 38.2-50% can be broken (at 1.35587-1.35668) the sellers are the aggressor and the longs are fearful. Note that there may still be buyers /profit taking against the key support line – so be aware of that – but also recognize that a break of that support level, should solicit more momentum selling (the trend remains the friend).

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All information on this site is provided for informational and educational purposes only. Information provided is not to be misconstrued as trading advice. Past results are not indicative of future results. In addition trading in foreign exchange markets on margin carries a high level of risk, and may not be suitable for all individuals.The post is intended for clients and traders outside the US.

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