It's The Euro, ’Dummy'
Dailyfx | Sep 09, 2014 11:14AM ET
- USD/JPY touches key Fib extension
- Gold nears major downside pivot
- Euro cracks key support
Foreign Exchange Price & Time at a Glance:
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY traded it its highes level in almost 6 years today before stalling near the 127% extension of the 1Q14 range
- Our near-term trend bias remains higher in the rate while above 104.70
- A close over 106.45 is need to set off the next leg higher in the advance
- An important turn window is eyed mid-month
- A close below 104.70 would turn us negative on USD/JPY
USD/JPY Strategy: Like the long side while above 104.70.
|
Instrument |
Get The News You Want
Read market moving news with a personalized feed of stocks you care about.
Get The App
Support 2 |
Support 1 |
Spot |
Resistance 1 |
Resistance 2 |
|
USD/JPY |
*104.70 |
105.80 |
106.15 |
*106.45 |
106.75 |
Charts Created using Marketscope – Prepared by Kristian Kerr
- XAU/USD has come under further pressure to trade at its lowest level since early June
- Our near-term trend bias is lower while below 1296
- The 1240 level remains a major downside pivot with weakness below needed to confirm the start of a more important decline
- A cycle turn window is eyed next week
- A move over 1296 would turn us positive on the metal
XAU/USD Strategy: Square.
|
Instrument |
Get The News You Want
Read market moving news with a personalized feed of stocks you care about.
Get The App
Support 2 |
Support 1 |
Spot |
Resistance 1 |
Resistance 2 |
|
XAU/USD |
1224 |
*1240 |
1256 |
1280 |
*1296 |
Focus Chart of the Day:
If you have worked in the financial markets long enough you will know that they have a funny way of sometimes making you look foolish. Last week’s acceleration lower in EUR/USD through key support at 1.3025 felt like one of those times. Accelerations in trend around key time periods are not unheard of, in fact, I would estimate they occur about 20% of the time. With respect to the euro I believed it was a much lower probability scenario given the sentiment profile heading into last week as the Daily Sentiment Index (poll of small futures traders) fell to just 6% euro bulls. I still think the sentiment situation remains a major overhang for EUR/USD going forward and at some point we will get a decent “shake of the tree”. The real question is when? With the acceleration through the last window cycle analysis favors weakness into the next important turn window around the end of the month. EUR/JPY might actually be the canary in the coalmine, however, as the middle of the month looks potentially important from a cycle perspective.
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
/h2
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.