Euro, Risk-Linked Currencies Show No Signs of Letup
The strong rallies in the Euro and the three major
risk-linked currencies finished sharply higher and near their highs while
showing no signs of a letup into the close. Whether it was short-covering or fresh
buying, investors celebrated good global economic news by driving the U.S.
Dollar lower and most major markets higher.
Upside momentum is expected to continue overnight, but
traders will have to face a decision about whether to keep up this robust pace
so close to the U.S. Non-Farm Payrolls Report on Friday. In addition, investors
get a chance to assess more U.S.
economic data on Thursday including weekly initial claims, Factory Orders and
Pending Home Sales.
The Euro surged to the upside overnight, taking out the last
swing top at 1.2779 and changing the main trend to up on the daily chart. Based
on the range of 1.3334 to 1.2587, the EUR USD is now set up for a possible test
of the retracement zone of this range at 1.2960 to 1.3049. A downtrending Gann
angle from the 1.3334 top is at 1.2974, suggesting the formation of a
resistance cluster at 1.2960 to 1.2974 today and 1.2954 to 1.2960 on Thursday.
The initial catalyst behind the surge in the Euro overnight
was the bullish PMI news from China
and the better than expected growth report from Australia. Both news pieces helped
rally Asian stocks leading to greater demand for risk and subsequently the
News that the Euro Zone manufacturing recovery hit a
six-month low failed to halt this morningâ€™s advance.Overnight it was reported that the
manufacturing purchasing managersâ€™ index slowed to 55.1, with â€śmoderatedâ€ť
growth both in output and new orders.
According to the report, the hardest hit country in the Euro
Zone was Greece
which is still trying to recover from its financial crisis from the Spring. Germany and France posted â€śstrong growthâ€ť.The report also showed that the improvements
were â€śstill centered on Germany,
the Netherlands and Austriaâ€ť.
The recovery was â€ścomparatively modestâ€ť in Italy
Although this report suggests that the region is cooling,
the strength in Germany and France
should be noted. The weaker countries are likely to bring up this fact at the
next European Central Bank meeting on September 3. ECB members want to be
assured that the Euro Region as a whole recovers at a similar pace so that the
stronger countries do not dominate the weaker economies.
Despite the change in trend to the upside in the Euro,
momentum must continue to remain strong to drive this market to the objective
minimum objective of 1.2960 over the near-term.
The Dollar declined against the Euro and commodity-linked
currencies throughout the New York session
manufacturing activity showed a surprise improvement last month. This news came
unexpectedly and indicated that despite calls for a double-dip recession, there
were identifiable areas of strength in the economy.
Wednesdayâ€™s down move in the Dollar began last night
following the release of stronger economic data from Australia
Investor appetite for risk was whetted with the news, triggering a sharp rally
in the Australian, New
Zealand and Canadian Dollars.
Earlier this morning traders shrugged off a weaker than
expected ADP employment report, signaling that the focus would be on growth.
The ADP number suggested that Fridayâ€™s U.S. Non-Farm Payrolls Report will
likely be in line with pre-report estimates of a 106K to 120K jobs lost and an
increase in the Unemployment Rate to 9.6%.
Technically the EUR USD changed the trend on the daily chart
to up on the move through 1.2779. This sets up the strong possibility of a
retracement to a major 50% level at 1.2960. Upside momentum has to continue on
Thursday to keep this forecast in line. Some traders doubt that the rally was triggered
by real buyers because of thin pre-report and pre-holiday trading.
The AUD USD was a big mover on Thursday, posting a strong
gain of over 2.00%. The rally also exceeded a retracement zone at .8995 to
.9049. This move sets up a potential rally to a downtrending Gann angle at
Australian Bonds sold off following the report of a surge in
Australian GDP by 1.2 percent. This was the most rapid pace in three years and
led to call for an interest rate hike by the Reserve Bank of Australia at its next meeting on
The surge in the Australian economy also spilled over to the
New Zealand Dollar, which remained in a downtrend, but was threatening to break
out above the last swing top at .7191.
Finally, the Canadian Dollar benefited from higher crude
oil, a better outlook for the U.S.
economy and appetite for risk. Despite the bullishness of Wednesdayâ€™s trade,
look for the USD CAD to continue to straddle 50% of the main range of .9929 to
The strong closes in all the major foreign currencies
indicates that there may be a follow-through rally on Thursday, but there is
still doubt among some traders whether the rallies today in the majors were
real buying or weak shorts getting driven out of the market.
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.