Today’s Forex Guide

Good job on the jobless


Oct.16.2014

U.S. jobless claims fall to lowest level in 14 years. How about that? I bet Mr. Obama is having a huge smile on his face today.

The New York trading session started with the unemployment claims data release which showed that the number of Americans filing new claims for jobless benefits fell to a 14-year low last week. This is obviously a  positive signal for the labor market. It could counter the Mrs. Doubtfires over whether the economy is shifting into a higher gear.

Good jobless unemployment claims dollar happy man

While it's all good for Ms. USA, Mr. Euro fell into an 11-month low against higher -yielding currencies like the Norwegian crown and Australian dollar.

With the dollar strength today, and worries on European debt (including concerns on Greece and Spain) investors who were seeking a safe haven were like: "Aha! I'm going to shift my money away from all the turmoil in Europe." As a result, the EUR/USD pair was unable to pierce through the 23% Fibonacci and resistance level.

Across the globe...

Australia’s MI inflation expectations down from 3.5% to 3.4% in Sept

China’s foreign direct investment down by 1.4% ytd

In Australia, MI inflation expectations slid lower from 3.5% to 3.4% in September, citing falling petrol prices as the main reason for the decline. Meanwhile, China marked a 1.4% year-to-date decline in foreign direct investment, adding to signs of a potential slowdown in the country.

AUD/USD is just bouncing up and down like a maniac between the 0.88 and 0.86 levels, unable to make a decision on its next trend direction.

Intraday Forex Technical Levels


EUR/USD 4-hour Forex Dance Floor
EUR/USD 4-hour: Rebounding.

Invest Diva Likes: Short term short positions below 1.2763 with targets at 1.2600 and 1.2509 in extension.

If Pair Goes Nuts: Above 1.2763 look for further upside towards 1.2844 and 1.2926.

What's up on the Forex Dance Floor: The pair is rebounding from the previous bullish level and the upper boundary of the Bollinger Bands at 1.2844 above the Ichimoku's cloud. It just broke below a pivot point and the RSI is heading to the neutrality area.

Supports and Resistances
1.2926

1.2844

1.2763 Pivot Point

1.2666

1.2600


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

Invest Diva Likes: Short positions below 1.5959 with targets at 1.5866 and 1.5787 in extension.

If Pair Goes Nuts: Above 1.5959 look for further upside towards 1.6084 and 1.6162.

What's up on the Forex Dance Floor: The pair is consolidating at the center of the Bollinger Bands while remaining below the Ichimoku's cloud with the RSI at the neutrality area.

Supports and Resistances
1.6162

1.6084

1.5959 Pivot Point

1.5866

1.5787


USD/JPY 4-hour Forex Dance Floor
USD/JPY 4-hour: Reached 50% Fibonacci level.

Invest Diva Likes: Short positions below 105.67 with targets at 104.63 and 103.34 in extension.

If Pair Goes Nuts: Above 105.67 look for further upside towards 106.71 and 108.

What's up on the Forex Dance Floor: The pair continues to move down after confirming the Double Top pattern below the Ichimoku's cloud and is now teasing the 50% Fibonacci level at 105.67. Breaking of this level would signal further drops. The RSI is slightly below the oversold zone.

Supports and Resistances
108

106.71

105.67 Pivot Point

104.63

103.34


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

Invest Diva Likes: Long positions above 0.8758 with targets at 0.8828 and 0.8934 in extension.

If Pair Goes Nuts: Below 0.8758 look for further downside towards 0.8659 and 0.8502.

What's up on the Forex Dance Floor: The pair is moving back and forth between 23% Fibonacci level and the bottom level with slightly moving up as. The RSI is heading up towards the neutrality area.

Supports and Resistances
0.8934

0.8828

0.8758 Pivot Point

0.8659

0.8502

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