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As indicated in our previous update that the Tenkan-Sen has continued to put a floor on the currency pair and the past 3 weeks all ended with a relatively long lower shadow candlesticks on the weekly chart, suggesting a test of recent high of 82.00 cannot be ruled out, however,…

The Australian dollar finally penetrated recent high at 0.8479 and resumed the upmove from 2008 low of 0.6007, the series of white candlesticks on the weekly chart suggests further gain to indicated upside target at 0.8708 (50% projection of 0.6248 to 0.8265 measuring from 0.7700) is under way, however, aussie…

Today we expect the FX market to continue to take its direction from commodities. Especially, we will keep an eye on oil ahead of the OPEC meeting tonight. The official OPEC meeting will not start until late due to Ramadan. However, as always we should expect comments from OPEC delegates…

Tuesday the US dollar index traded at its lowest level since September 2008 and gold traded above $1000. The USD decline and gold rally is fueled by investor diversification. Diversification out of USD to gold may partly reflect concern about the risk of inflation. At last weekends meeting, the G-20…

In economic data, Australia’s Sept Westpac consumer confidence rose to 5.2% from 3.7% prior, which was the highest reading since July 2007. Additionally, Australia’s July retail sales [AUSTRALIA JULY RETAIL SALES M/M: -1.0% V 0.5%E (prior revised to -0.8% from -1.4%)] and lending data (AUSTRALIA JULY HOME LOANS: -2.0% V…

EUR/USD closed higher on Tuesday and above the upper boundary of this summer’s trading range, which crosses. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If it extends the…

Euro/Dollar made a significant upward movement with around 200 pips on Tuesday as stocks and commodities gained. On the 1 hour chart the downward channel was broken upwards, indicating potential rising perspectives, but lack of trading volume may also lead to a false break, so be aware for another possible…

The UK Nationwide Consumer Confidence Survey for August came in at 63; better than its forecast of 62 and its previous release of 60. The BRC August Shop Price Index came in weaker year over year at -0.1%. The market remains unchanged as the GBP trades off session highs.

In yesterday’s data release, UK industrial production in July rose for the second consecutive month and raised hopes of a return to positive growth in Q3. Indeed, the National Institute (NIESR) estimated that growth turned positive in the 3m to August, up 0.2%. The pound was one of the stronger…

Yesterday’s gains were quite impressive. However, I feel they may well have completed this part of the correction at 1.6585. However, I can’t say the correction has been too deep and we should therefore be aware of the risk of the possibility of a minor new high. However, I feel…