Fear that China may Overheat Triggers Surge in U.S. Dollar.
The U.S. Dollar surged overnight as traders took protection
against a shift in Chinaâ€™s
expansionary monetary policy. The overnight announcement, that Chinaâ€™s
economic growth and inflation figures exceeded expectations fueled speculation
that it was poised to begin restricting loans and ending stimulus.Fear that the economy may overheat is
triggering demand for lower yielding assets at the expense of higher risk
Overnight the Cash Dollar Index rallied to its highest level
in 5 months and now seems well on its way to retrace its 2009 range of 89.62 to
74.17.This makes 81.90 to 83.72 the
next valid upside target.
The EUR USD weakened further overnight as the cost to
protect Greek bonds from default soared to a new record.Losses were limited, however, by a rumor which
said the European Union was preparing to loan money to the country. The rumor
was denied, but investors, nonetheless, took protection against a possible
massive short-covering rally by lightening up positions.
The chart pattern suggests the EUR USD is holding the
psychological level of 1.4000; however, 1.3800 remains the next valid downside
target.Short-covering today could send
this market back to the old bottom at 1.4217.
The GBP USD weakened further overnight on the news that the U.K. budget
deficit widened.A lack of confidence in
the economy could also be a driving force behind the recent weakness as
investors fear that the U.K.
may be falling behind its peers in the midst of the economic recovery.
The current two-day break has created two key ranges:1.5832 to 1.6457 and 1.5895 to 1.6457.These ranges create retracement zones at
1.6144 to 1.6071 and 1.6175 to 1.6108. The overlap of these two retracement
zones suggests possible support developing inside 1.6144 to 1.6108.In addition, uptrending Gann angle support is
at 1.6132 today.Watch for a possible
technical bounce in this zone.
The USD JPY is rising again overnight on speculation the
Japanese Yen is poised to once again become the worldâ€™s carry currency.Additional weakness hit the Yen following a
report that demand for lending dropped.This news could raise fears of deflation and is definitely a signal that
the Bank of Japan will keep interest rates at historically low levels at its
January 25th meeting.
Investors seem to believe that Japan will be the last country to
exit its stimulus plans.This line of
thinking was backed by a comment from Bank of Japan Governor Shirakawa who said
the central bank â€śis aiming to maintain an extremely accommodative financial
Based on the short-term range of 93.77 to 90.31, traders
should continue to look for the USD JPY to rally to 92.04 to 92.45 before
finding sellers.Additional resistance
is at a downtrending Gann angle at 92.65.Up trending Gann angle support is at 91.31.
The USD CHF continued to soar overnight.The next upside target is the December high
at 1.0507.Gann angle support is at
1.0450.This angle has to hold or the
profit-taking stops will trigger a collapse.Traders have been buying the Dollar against the Swiss Franc in
anticipation of an intervention by the Swiss National Bank because of its
appreciation against the Euro.
Technical factors could pressure the USD CAD now that it has
retraced greater than 50% of its recent break.Based on the main range of 1.0745 to 1.0224, the key retracement zone is
1.0484 to 1.0546. This market is currently testing this area.A failure to hold uptrending Gann angle
support at 1.0424 will be another sign of weakness.Downtrending Gann angle resistance is at
1.0515.This price was tested early last
night when the market rallied to 1.0524.
Fundamentally, the recent action by the Bank of Canada
suggests that it will defend against a rapid rise in the currency.This creates a potentially long-term bullish
scenario. Short-term conditions are overbought, which may trigger a mild
The AUD USD is trading slightly better following its attempt
to test a major 50% price level at .9031. Short-term conditions appear to be
oversold which could trigger the start of a short-covering rally back to .9189
especially if it closes higher today.
The recent actions by China to tighten up its lending
policies could have long-term implications on the Australian economy.The formation of a secondary lower top will
be a strong sign that a top has been formed.The next Reserve Bank of Australia
meeting is February 2nd.Traders are
leaning toward another rate hike, but have cut down the probability of the hike
now that China
has begun tightening.
A reported slow down in the New Zealand economy coupled with
monetary tightening in China led to the huge sell-off on Wednesday.Last night, there was additional selling
pressure but nothing compared to yesterdayâ€™s weakness.This could be suggesting that conditions are
Technically, the NZD USD completed a .618 retracement of the
.6970 to .7442 range to .7150. Additional support is being provided by the
uptrending Gann angle at .7160. Regaining .7206 will be a sign of
strength.This move could trigger the
start of a retracement back to .7292 to .7327.
Forex Trading News
Daily Forex Market News Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Forex News Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
Actionable trading levels delivered to YOUR charts in real-time.
Mon 19 Mar 2018 Tue 20 Mar 2018 AA 9:30 GB- CPI A 10:00 DE- ZEW Survey Wed 21 Mar 2018 AA 03:00 AU- Employment AA 9:30 GB- Employment A 12:30 US- Current Account AA 14:00 US- Existing Homes Sales A 14:30 US- EIA Crude A A18:00 US- Fed Rate Decision A 21:00 NZ- RBNZ Rate Decision Thu 22 Mar 2018 AA All Day flash PMIs AA 9:30 GB- Retail Sales AA 12:00 GB- Bank Of England Decision A 13:30 US- Weekly Jobless Fri 23 Mar 2018 AA 12:30 CA- CPI/Retail Sales A 12:30 US- Durable Goods A 14:00 US- New Homes Sales
John M. Bland, MBA co-founding Partner, Global-View.com
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.