The AUDNZD has been trading within its bearish price channel as visible in this H4 chart. Current price action trades around its declining resistance level and close to its declining 200 DMA. We believe this pair will reverse and correct back down to its declining support level. MACD shows momentum is bearish, but has shown improvement over the past few sessions. Nevertheless the recent spike is neither confirmed by momentum nor volume. RSI is approaching overbought territory, but given the fast acceleration in price action it may...
This week we saw a renewed call for a fully Cypriot financial bailout as its banking system is pressured and the Cypriot government is out of cash (Cyprus Banking System Needs Second Bailout). Russia gave Cyprus a €2.5 Billion loan in order to be able to restructure its financial system which attracted vast amounts of foreign capital, especially from Russian oligarchs. Now Cyprus needs a second bailout and there is a rift between the Troika as of the terms for the bailout. Germany is reluctant to agree to a bailout without Russian...
European Fundamental Outlook 01/13/13 The European Central Bank retained its policy stance For Monday, anticipate the Euro to show some negativity in its currency valuation, as the ECB made its first policy meeting early this year and as expected it did retain its policy stance, which most analysts had expected that the ECB would remain in abeyance because of a recent signs that the recovery is underway which might spell optimism in the euro area countries, though is a slow pace. With a positive light shed by the rising of its...
The Japanese election resulted in a landslide victory for the conservative LDP which governed Japan for almost 50 years until they lost the election in 2009 (Japanese Election creates Gap in Yen). Market participants took the return of ‘Abenomics’ as a reason to send the Yen on a rollercoaster ride this week which ended on a positive note from a chart perspective. Japan continues to suffer from its recession it initiated after its massive financial bailout in the late ‘90s which it claimed was necessary in order to keep the global...
The EURUSD has launched a strong rally after hitting its 200 DMA and formed a rising wedge formation as visible on this H4 chart. The last ten candlestick formations have indicated that the rally lost its steam and has formed a new temporary top. We expect this pair to start a correction and bearish pressures to cause a breakdown of the formation amid heavy profit taking. MACD has indicated the top and failed to confirm the new highs while RSI has been trading in extreme overbought territory which it will not be able to hold for...
