Today’s Forex Guide

BoE & ECB Day – Pound & Euro Moves


Oct.02.2014

Big day it is with plenty of hot economic data already out during the Asian and London trading sessions into the New York session.

Overnight moves include a big drop in the value of the Nikkei, as investors fears over global growth heighten. We've also seen more protests from Hong Kong students and a threat of further escalation. The markets there have been closed for the day

British pound was hit hard and Mr. Euro got a bit of a strength as expected.

Bank of England (BOE)’s Broadbent said that the U.K. is still not ready for a rate hike. Mr. British Pound took big hits against all his major counterparts. We started the New York trading session with strong momentum still to the downside.


European Central Bank (ECB) made no changes to their interest rate policies as expected. And Mr. Euro was pumped up a it. We could expect more sexy moves on the real European fireworks that is ECB press conference; What Draghi will say on quantitative easing will determine whether or not volatility picks up for the euro and which direction it’ll go next.

The US session opened with better than expected unemployment claims data which was good for Ms. USA and therefore it balanced out the earlier European and Pound movements.

On the Daily EUR/USD forex dance floor, the pair formed a spinning top at the two-year low level of 1.2568 and now moving up on market sentiment. A break above the pivot point of 1.2774 could open door for a new bullish sentiment towards 1.2908 while the alternative scenario would be more drops with targets set at 1.2504.

eurusd technical analysis

Friday we are expecting the all important Non-Farm Employment Change is the US at 1:30 PM Followed by US Non-manufacturing PMI, which could bring more opportunities for dollar trading.

 

Intraday Forex Technical Levels


GBP/USD 4-hour Forex Dance Floor
GBP/USD 4-hour: Moving down.

Invest Diva Likes: Short positions below 1.6171 with targets at 1.6069 and 1.5998 in extension.

If Pair Goes Nuts: Above 1.6230 look for further upside towards 1.6280 and 1.6329.

What's up on the Forex Dance Floor: The pair has moved down since it reached a mid-term top at 1.6490 but is now consolidating around the 76% Fibonacci level at 1.6171 below the Ichimoku's cloud. The RSI is below to the neutrality area. Also one of the largest international brokers says that 57% of traders are long the pair. Using this market sentiment index as a contrarian signal, the combination of the technicals and current sentiment gives a further bearish bias.

Supports and Resistances

1.6329

1.6280

1.6230

1.6171 Pivot Point

1.6069

1.5998


USD/JPY 4-hour Forex Dance Floor
USD/JPY 4-hour: Consolidating.

Invest Diva Likes: Long positions above 108 with target at 109.17 and 110 in extension.

If Pair Goes Nuts: Below 108 look for further downside towards 106.71 and 105.67.

What's up on the Forex Dance Floor: The pair rebounded to enter the Ichimoku's cloud after reaching a new 5 year high and rebounding. The pair is teasing the lower band of the Bollinger Bands with the RSI heading towards the neutrality area.

Supports and Resistances
110

109.17

108

106.71

105.67


USD/CAD 4-hour Forex Dance Floor
USD/CAD 4-hour: Moving up.

Invest Diva Likes: Long positions above 1.1124 with target at 1.1165 and 1.1222 in extension.

If Pair Goes Nuts: Below 1.1063 look for further downside towards 1.1016 and 1.0967.

What's up on the Forex Dance Floor: The pair is forming a strong bullish candlestick as rebounding from the Ichimoku's cloud, breaking above a pivot point at 1.1124 with the RSI heading up at neutrality area.

Supports and Resistances
1.1222

1.1165

1.1124 Pivot Point

1.1063

1.1016

1.0967

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