Signals Articles

Mixed reaction to Germany’s OMT ruling

Forex Analysis
EURUSD

EURUSD, 60 min

Draghi’s promise to do “whatever it takes” to safeguard the Eurozone came with the promise of the OMT (Outright Monetary Purchases) and helped to end the debt crisis. Germany’s top court today finally gave its final clearance after initially referring it back to the EU’s top court, although with a caveat with the German Constitutional Court voicing concerns, but saying they were bound by the EU ruling, which argued that the plan contained sufficient safeguards to prevent the bond purchases from being disproportionate.

Germany’s Ifo institute said the ruling was a “pity”, because it is “obvious that the OMT primarily pursues the fiscal aim of maintaining credit access for highly indebted states”. The Ifo would have liked the court to set tighter rules for the Bundesbank’s participation in the program. The ZEW meanwhile said the ruling is “very Europe friendly”, saying the focus on the implementation of the program in the ruling, means government and parliament will need to watch how the OMT is implemented, but also that “financial markets can now relax”. Germany has been trying to safeguard the ECB’s prohibition of direct government financing, but it seems the pressure for a mutualisation of costs and risks is getting ever stronger and the critics see the OMT as one step in the direction of direct financing.

EURUSD is attracting some buying after the ruling was published but resistance levels are near. The nearest intraday resistance is at 1.1330 with the next intraday resistance at 1.1340. Intraday support at 1.1320. ECB’s Draghi will speak in about one hour’s time and might cause some extra volatility in the pair. I advise to reduce risk and when necessary to exit geared positions before an event that might move the markets in unpredictable ways.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

About Janne Muta, HotForex’s Chief Market Analyst

jmutaJanne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.

Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.


“My mission is to help you to become a confident and successful trader”

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

 

RBA Minutes support AUDUSD

Forex Analysis
Chart_16-06-21_12-00-00

AUDUSD, Daily

The RBA Meeting Minutes from from the June 7th policy review were published today. Minutes contained no indication of further rate cuts which has kept a positive momentum going in the AUD. It has gained today against the USD, EUR and CAD while it has lost ground to against JPY and NZD. In May the central bank cut rates lower to 1.75 (a record low) in a surprise move and signalled at the time that inflation was expected to remain subdued for some time. Lower AUD has helped the economy and supported the labour market. Unemployment has dropped from 6.25 to 5.75 in the first quarter. At first the rate cut produced further depreciation in the currency but it was soon reversed and AUDUSD has rallied over 4% since the low at the end of May. At the time of writing AUDUSD is trading above the levels it was at the time of the May 7th rate cut. Traders seem to be bidding the pair higher on the back of the belief that the RBA has reached the end of the easing cycle. This however could change if the currency appreciated significantly from the current levels and started to impact the employment numbers.

Technically AUDUSD has created a bullish higher low (at 0.7285) in the daily picture and is currently challenging the high at 0.7504 created in the beginning of June. This level coincides with the 0.50 Fibonacci retracement level but the preceding higher low together with the strong economic picture and the recent RBA communication suggests that the market is more likely to push through this resistance. The next significant resistance area after 0.7504 is at 0.7574 – 0.7600 while the nearest daily support is at 0.7410. The nearest intraday support area can be found at 0.7435 – 0.7465. I’m looking for buy signals inside the support area. My targets are as follows: T1 is at 0.7500 and T2 at 0.7570. Alternatively, if price breaks above the resistance without a retracement to support then I’m applying the strategy our traders know from the Live Analysis Webinars. Should that be the case, the 0.7570 becomes the T1 while T2 would then be at 0.7605.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

About Janne Muta, HotForex’s Chief Market Analyst

jmutaJanne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.

Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.


“My mission is to help you to become a confident and successful trader”

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

All about Sentiment, Fundamentals on hold

Forex Analysis
2016-06-17_12-06-03

GBPUSD, H4        

The tragic events on the streets of small town in northern England yesterday prompted a dramatic about turn in the UK political tone, which was mirrored in the markets. The EU Referendum campaign has been suspended, with no indication of when it will be restarted;   however the referendum will still go ahead next Thursday. The FT’s poll tracker is showing 48% support to leave the EU and 43% support to remain in the EU, with the Leave campaign having gained one percentage point and the Remain camp having lost one percentage point following the inclusion of the two latest polls. While the last six polls have all shown higher support for leaving the EU than remaining a part of the single market, bookmakers are still showing the betting market that the UK will vote to remain in the EU. Ladbrokes, for instance, is showing a 64% implied probability in favour of Remain. This backdrop and news of the suspension of campaigning prompted an unwinding in sterling short positions yesterday. The pound is sitting 2% above the two-month low seen yesterday against the dollar at 1.4012 and currently trades at 1.4290. There was also major volatility yesterday, on the Gold market as a dramatic reversal from recent highs at $1315 took hold. The key commodity declined almost 3% to trade as low as $1276 before recovering to the $1280 -1285 level.

Sentiment is the major driver of the markets at the moment with technicals and fundamentals taking a back seat. These wild intra-day swings and volatility will persist until the resolution of the UK Referendum. This is likely to be “around breakfast time” (anywhere between 03:00-05:00 GMT) next Friday June 24, however , there is considerable uncertainty about when the actual national declaration will take place as it is dependent on all 382 local totals being declared.

Although there is no official exit poll, referendum rules do allow exit polls on the day of the referendum so long as they are not published until after polls close (19:00hrs GMT). The UK hedge fund industry has commissioned private exit polls to get an early warning of the result and this will inevitably move sterling as they take their positions based on the result of their polling.  However, doing an exit poll in a referendum is very difficult as there is not a lot of past data on which to base your findings. There have not been many referenda in the UK and therefore it is difficult to get the methodology correct.  The major UK media outlets will not be publishing exit polls due to these problems. So, as always, trade with strict risk management and expect increased volatility to be the only constant in the week ahead.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

About Janne Muta, HotForex’s Chief Market Analyst

jmutaJanne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.

Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.


“My mission is to help you to become a confident and successful trader”

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

UK Retail Sales Stronger – Sterling weaker

Forex Analysis
2016-06-16_12-30-33

GBPJPY, H4        

Post-UK data gains in the pound were reigned in as the stellar retail sales report for May, which was replete with big up revisions in April data, were offset by a new Brexit poll from Ipso Mori putting the Vote Leave campaign six points in the lead. Seven of the last eight polls have put Leave ahead.

UK retail sales, meanwhile, came in much stronger than expected in official data for May, rising 0.9% m/m and by 6.0%y/y from upwardly revised April figures of +1.9% m/m (originally 1.3%) and +5.2% (originally 4.3%). The median forecasts had been for just 0.1% m/m and 3.7% y/y growth. The data kicks into touch the idea that the run-in to the Brexit vote would have impeded retail activity. Cable, after some oscillations, is presently near the midpoint of the day’s range, at 1.4165 which has itself remained within yesterday’s range. GBPJPY remains south of 148.00 and EURGBP north of 0.7950.  Risk remains to the downside given the real chance for the UK voting to leave the EU at next Thursday’s referendum.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

About Janne Muta, HotForex’s Chief Market Analyst

jmutaJanne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.

Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.


“My mission is to help you to become a confident and successful trader”

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

JPY Keeps on giving – USDJPY Target 1 hit

Forex Analysis
2016-06-16_11-17-05

USDJPY, Daily        

The USDJPY Daily trade I identified on Monday (June 13th) was triggered on the close of the Daily candle that night with the Target 1 realised yesterday (June 15) for a 75 pip gain. This was prior to the huge move we have seen following the FOMC and BOJ announcements and press conferences overnight where we now see the pair sub 104.00 (another 150 pips further down).

It is also a reminder to “trade what you see and not what you think”. One of the many mind games that lead to successful trading is to not worry about  “what might have been” or how many pips you would have made if you’d “just left the trade on that little bit longer”.  That nagging little inner voice will ultimately detract from your success. The comfort of trading from completed candles and completing analysis before the event is that you set your entries and targets and let the market come to you. You do not need to “chase” trades or go “trade hunting.”

 2016-06-13_10-52-03

Trading on the Daily timeframe allows for Target and Entry levels to be set without the “noise” of the intra-day moves, and although I have “missed” the larger moves trading this way, the benefit is that you do not enter a market too soon and you can trade with much less stress. Patience is a skill that all successful traders practice very time they open a trade.

The strength of the yen and weakness of sterling has also seen the GBPJPY 148.80 Monthly support I identified on Monday to be breached this morning, a 100+ pip move. Next down levels remain 145.15 and the 2013 low of 140.20.  Brexit and its implications continue to dominate markets and with polling day less than a week away uncertainty continues to rise as quickly as the YEN and the price of GOLD.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

About Janne Muta, HotForex’s Chief Market Analyst

jmutaJanne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.

Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.


“My mission is to help you to become a confident and successful trader”

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Away from Brexit AUDNZD looks interesting

Forex Analysis
2016-06-15_14-02-42

AUDNZD, Daily        

Away from the Brexit woes and the impending FOMC announcement and press conference later today my attention has turned to the some of the other crosses. The antipodean pair has been in a strong down trend on the Daily time frame since the end of April.

Today sees the GDT (Global Diary Trade) data released and it is a key for the New Zealand economy, tomorrow (Thursday) sees the announcement of GDP also from New Zealand. The NZD is having another strong day today too. Also tomorrow there is Inflation and Employment and Unemployment numbers from Australia.

Technically, the Daily down trend remains is intact, a potential SELL area appears where the channel, 20 DMA and 23.6 FIB retrace levels coincide between 1.0580 – 1.0620. This would generate Target 1 – 1.0486, Target 2 1.0340 and Target 3 1.0173.  A break above 1.0750 would be of interest for BUY positions.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

About Janne Muta, HotForex’s Chief Market Analyst

jmutaJanne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.

Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.


“My mission is to help you to become a confident and successful trader”

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

EURUSD waiting for the FOMC

Forex Analysis
EURUSD

EURUSD, 60 min

With the FOMC decision ahead of the markets are likely to stay on a wait and see mode. This means that EURUSD fluctuating between nearby minor support and resistance levels. Market participants are wary of taking strong views and large positions before they know what the US Fed is likely to decide. We don’t expect a rate hike today due to recent lousy NFP data and the UK’s EU referendum being so close and look for two rate hikes later on this year, with the first one possibly coming in July after UK voters have said no to Brexit.

The last time I was writing about EURUSD I suggested the market should be a sell either at or inside my Sell area of 1.1304 – 1.1320. Market rallied to 1.13027, turned and then moved through both my Target 1 and Target 2 areas.

Currently EURUSD is trending lower in 4h resolution and trading near resistance levels created by Monday’s lows ( 1.1230- 1.1240). If EURUSD manages to close above the resistance area, then it brings the channel high (currently at 1.1270) into play. However, with the FOMC statement ahead of us today markets are likely to be subdued and I’d be surprised if EURUSD started to break resistance levels. Therefore in the intraday picture I expect that the resistances will prevail while volatility will remain low until the FOMC statement. As the resistance has now been rejected I expect the pair to move to 1.1190 – 1.1200 range. In the longer term picture it seems that the USD is getting stronger and provided that the Fed Chair Yellen doesn’t come with any surprises we should see this trend continuing over the coming weeks.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

About Janne Muta, HotForex’s Chief Market Analyst

jmutaJanne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.

Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.


“My mission is to help you to become a confident and successful trader”

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

UK Unemployment falls in April

Forex Analysis
2016-06-15_12-15-55

GBPUSD, H4       

UK unemployment unexpectedly fell to 5.0% in April, which is the lowest level seen since November 2005. The median forecast had been for an unchanged reading of 5.1%. The employment rate was 74.2%, which is the joint highest since records began in 1971. Wage data were also perkier than expected, with the including-bonus average household income figure rising to 2.0% y/y in the three months to April, unchanged from March and contrary to expectations for a dip to 1.7%, while the ex-bonus figure rose to 2.3% y/y from 2.2%, contrary to the median forecast for a dip to 2.1%. The more timely claimant count change dipped by 0.4k in May, while the claimant count rate was 2.2%, unchanged from an upwardly revised figure for April. The data catalysed a 30 pip rally in sterling, thought follow-through has been limited given Brexit preoccupations.

With nine days to go until the UK’s referendum the FT poll tracker is showing 47% support for leaving the EU and 44% for remaining, with the Vote Remain campaign losing one percentage point since the last update. Conversely, bookmaker Ladbrokes is showing the betting market is discounting a 62% probability for the UK remaining in the single market, which is up from 57% yesterday, likely reflecting a betting response to the threat by pro-EU chancellor Osbourne today of higher taxes and cuts in public services in the event of a Brexit vote. Given the disrepute of pollsters following their abject failure to predict the comfortable Conservative Party victory at last year’s general election, many are looking to the betting market for a more accurate gauge on the vote outcome.

The H4 time frame has near term resistance at 1.4210-1.4220 and support at 1.4100, with the FOMC announcement and press conference awaited later today too.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

About Janne Muta, HotForex’s Chief Market Analyst

jmutaJanne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.

Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.


“My mission is to help you to become a confident and successful trader”

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

UK CPI unchanged but it’s all about Brexit

Forex Analysis
2016-06-14_12-10-42

GBPUSD, Daily        

UK May CPI remained unchanged at 0.3% y/y, below the median for 0.4% y/y. Rising transport costs and restaurant bills were principal upward drivers. Core CPI also came in unchanged, at 1.2% y/y. The data fits BoE projections, which is also expecting prices to rise markedly in the second half of the year on the back of rising energy prices, though the central bank still thinks CPI will remain below 2% at its two-year forecasting horizon. The wildcard will be if the UK votes to leave the EU, which would more than likely trigger a sharp drop in sterling (most think to around 1.20 versus the dollar) and which would in turn drive inflation well above BoE forecasts. As was the case in the 2008-2014 period, when CPI remain above the 2% target, the BoE would like ignore a post-Brexit spike in inflation.

The UK PPI data that was released at the same time was a little stronger than expected, however, sterling continues to trade lower.  1.4050 marks the April low and 1.3850 the 2016 low with Brexit woes continuing to dominate sentiment.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

About Janne Muta, HotForex’s Chief Market Analyst

jmutaJanne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.

Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.


“My mission is to help you to become a confident and successful trader”

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Weidmann: Low inflation justifies the ECB policy

Forex Analysis
Chart_16-06-13_12-07-30

Low inflation and expectations of further easing have been pressuring EURUSD. ECB’s Weidmann commented on inflation earlier today saying that expansionary policy currently justified, as low inflation is not just a consequence of low oil prices, but core inflation is also low. In what looked like comments to defend Draghi’s policy stance to the critical German audience, Weidmann said in Frankurt that “given these muted price prospects and expansionary monetary policy is current appropriate”, although he added that “you can have different opinions on the specific design of the unconventional measures”.

EURUSD has been violating support levels since it turned from the 1405 – 1415 resistance level I Identified in June 7th report. Now the pair is oversold as per Stochastics (7.3.3) in the 4h chart and is trying to retrace some of the recent losses. I expect that this rally will be short lived and the market will turn lower after the buying interest fails. I’m seeing a resistance area between 0.382 and 0.5 Fibonacci retracement levels (1.1300 – 1.1322) while there is a support level at 1.2200 together with further support at 1.1134. This support is significant and has potential to stop the down move and turn EURUSD higher.

I am therefore looking for sell signals at or inside my Sell Area 1.1304 – 1.1323 with Target 1 at 1.1268 – 1.1280 and Target 2 at 1.1230 – 1.1244. Target 3 is at 1.1135 – 1.1285. For those interested in the potential up move to the Sell Area, I’m seeing support between 1.1250 and 1.1260. Please remember that this is not investment advice and that you should not be trading without proper understanding of risk management.

Janne Muta

Chief Market Analyst

If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:

http://www.topforexbrokerscomparison.com

About Janne Muta, HotForex’s Chief Market Analyst

jmutaJanne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.

Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.


“My mission is to help you to become a confident and successful trader”

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.