Littlefish FX | Apr 20, 2015 06:31AM ET
KEY DATA RELEASES TODAY (BST):
No Key Data Today
OVERNIGHT:
Benefiting from the USD weakness, the EUR has had its best week in a month despite growing concerns on Greece’s debt crisis. The European Central Bank is concerned if Greece runs out of money and starts paying civil servants with IOU’s, creating a virtual second currency in euro zone. Expectations of a swift EUR/USD sell off following G20 communiqué over the weekend appeared to be relatively short lived as the pair transpires to be in consolidation mode in this morning’s after a lacklustre Asian session following last week’s break and positional adjustment to the topside. From here 1.085080 area acting as key resistance level. To the downside short term support comes in at 1.0760 followed by key level at 1.0660.Little in way of economic data releases today.
USD/JPY has had five straight sessions now of lower highs/lower lows… Technically the pair remains magnetized by 119.95 (the level where the pair closed on Friday as well). 118.50 is the support level to watch now on the downside, where a break below could see a move towards 118. Players prefer buying dips, respecting the broad 118/122 range, and given the US CPI showing signs of stability, risk positive developments over the weekend, If carry remains a popular strategy, cross JPY demand should also keep the pair supported.
UK employment data on Friday was strong enough to generate further buying interest, but the GBP/USD was capped at the 1.5050 resistance level. This week, we get the BOE minutes as the main domestic risk to watch… anticipate the tone to reflect continued concern over the strong currency.
PRICE ACTION OVERVIEW:
EUR: Above 1.0860 refocuses on fourth 1.10 test, 10730 key intraday support ahead of medium term 1.0620
GBP: Daily close above 1.50 energises bulls, while this area caps expect consolidation, below 1.4840 revives bearish bias
JPY: While 118.30 contains downside target 121.00 en route to retest of year to date highs, only below 118.30 concerns bullish view
CAD: 123.50 former support now becomes key resistance second close below here forewarns further downside
AUD: While .7860/80 contains upside anticipate third test of key .7550 failure here opens the bearish target of .72, above .7880 alleviates downside pressure
KEY TRADES:
FX Pair | Short Term | Position/Date | Entry Level | Target | Stop | Comments |
EUR/USD | Neutral | Await new signal | ||||
GBP/USD | Neutral | Await new signal | ||||
USD/JPY | Neutral | Await new signal | ||||
USD/CAD | Neutral | Await new signal | ||||
AUD/USD | Neutral | Await new signal |
ANALYSIS:
EUR/USD Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks) Bearish
GBP/USD: Short Term (1-3 Days): Neutral - Medium Term (1-3 Weeks) Bearish
USD/JPY: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks) Bullish
USD/CAD: Short Term (1-3 Days): Neutral - Medium Term (1-3 Weeks) Bullish
AUD/USD: Short Term (1-3 Days): Neutral - Medium Term (1-3 Weeks) Bearish
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.