Today’s Forex Guide

Weekend summary and the week ahead


Oct.06.2014

Good Monday and welcome to yet another Lazy Monday Forex Dance Floor.

Ms. USA (AKA US dollar) started the day with side way dance moves leaning towards the downside after a report last week showed jobs increased even as participation fell, fueling debate over when the Federal Reserve will raise interest rates.

Japanese yen strengthened from almost its weakest since 2008 before the Bank of Japan’s policy decision tomorrow. The euro advanced against the US dollar, three days after touching a two-year low, even as German data showed factory orders declined the most since 2009 in August.

Last week we saw a six year high on the USD vs. JPY forex dance floor, amid prospects for the BOJ to continue unprecedented monetary easing while the Federal Reserve weighs the timing of its first interest rate increase. Mr. Kuroda will hold a news conference after a two-day meeting with his board that starts today. He reiterated on Oct. 3 that he doesn’t think a weak yen is a minus for the Japanese economy overall.

“If Kuroda again states there are few demerits to a weaker yen, it would be a catalyst for more yen selling,” said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo. “I expect the yen to make a run at 111.50 this week.”

British Pound staged a mild upward move and recovery from 11-month lows Monday but it lacked follow-through to clear the 1.6000 psychological level and was confined to a phase of consolidation.

It's a Chinese bank holiday so that could eliminate dance moves of currencies correlated to Chinese economy, namely Mr. Aussie and Kiwi.

fundamnetals and technical fx dance floor invest diva

Coming up This Week

Tuesday's Asian session will start with Reserve Bank of Australia's statement at 4:30 am GMT followed by Bank of Japan's Press Conference. The London session kicks off with the UK Manufacturing PMI at 9:30 am and later we could see some moves in the Canadian dollar over Canada's monthly Building Permits at 1:30 PM GMT.

Wednesday is mostly lazy until we get the FOMC meeting minutes at 7 pm GMT.

 

 

Intraday Forex Technical Levels


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

Invest Diva Likes: Short positions below 1.2600 with targets at 1.2509 and 1.2385 in extension.

If Pair Goes Nuts: Above 1.2600 look for further upside towards 1.2666 and 1.2763.

What's up on the Forex Dance Floor: The pair is on an overall downtrend below the Ichimoku's cloud but is now rebounding from the previous bearish target at 1.2509. The RSI is under the neutrality area.

Supports and Resistances
1.2763

1.2666

1.2600 Pivot Point

1.2509

1.2385


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

Invest Diva Likes: Short positions below 1.5998 with targets at 1.5924 and 1.5866 in extension.

If Pair Goes Nuts: Above 1.5998 look for further upside towards 1.6069 and 1.6171.

What's up on the Forex Dance Floor: The pair is on an overall downtrend and is currently consolidating around the level at 1.5998 under the Ichimoku's cloud.? The RSI is moving under the oversold zone.?

Supports and Resistances
1.6171

1.6069

1.5998 Pivot Point

1.5924

1.5866

USD/JPY 4-hour Forex Dance Floor
USD/JPY 4-hour: Touching Ichimoku's cloud again.

Invest Diva Likes: Long positions above 109.17 with target at 110.08 and 110.52 in extension.

If Pair Goes Nuts: Below 109.17 look for further downside towards 108 and 106.71

What's up on the Forex Dance Floor: The pair rebounded after breaking above the Ichimoku's cloud and is now back to the level at 109.17 or the upper boundary of the cloud, forming a Doji candlestick pattern which indicated indecisiveness.. The RSI is heading up from the neutrality area.

Supports and Resistances
110.52

110.08

109.17 Pivot Point

108

106.71


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

Invest Diva Likes: Short positions below 0.8750 with targets at 0.8659 and 0.8502 in extension.

If Pair Goes Nuts: Above 0.8750 look for further upside towards 0.8828 and 0.8934.

What's up on the Forex Dance Floor: The pair is on an overall downtrend below the Ichimoku's cloud and is now rebounding after failing to break up inside the cloud, . The RSI at the neutrality area.

Supports and Resistances
0.8934

0.8825

0.8750 Pivot Point

0.8659

0.8502

signup

preview

get it

Back to Top

Learn How to Grow Your Wealth