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Devata Tseng

USD Hits Lowest Level Since November on Trump’s Healthcare Failure

The dollar index slumped to a 4-and-a-half-month low of 98.85 this morning during the European session, US equities also fell, as markets have lost confidence in Trump’s administration to fulfil his promises. Trump’s first bill proposal since taking office, to repeal Obamacare and replace it with the American Health Care Act, failed on Friday March 24. This is his second failure following the refugee and immigration travel ban. Not surprisingly President Trump blamed the Democrats for the ...

Devata Tseng

NZD/USD Hovers Around Support Prior to US Healthcare Vote

NZD/USD has retraced substantially since March 21st, as it was nearing the short-term major resistance level at 0.7100. This morning, the bearish momentum was held above the significant psychological support line at 0.7000, where the 10 SMA converges (on the daily chart), the support here is stronger. The 4-hourly Stochastic Oscillator is around 20, suggesting a rebound. The resistance level is at 0.7015, followed by 0.7030 and 0.7050. The support line is at 0.7000, followed by 0.6985 and ...

Devata Tseng

Healthcare Vote Postponed Due To Republican Disagreement

The vote on President Trump’s first bill proposal since taking office, to repeal Obamacare and replace it with the American Health Care Act, was postponed abruptly from Thursday evening to Friday March 24, due to severe disagreements within the Republican party. President Trump and Republican leaders have been attempting to convince more Republicans to support the new bill. However, it seems to be difficult to reverse the situation in a short time period. Trump stated that if the bill fails to ...

Devata Tseng

Gold Tests Resistance Zone Ahead of Yellen’s Speech and Health Care Bill

Gold has rallied for six consecutive days since March 15, saw its longest bullish streak since January, after testing the significant support zone between 1195 – 1200 in mid-March. Market concerns, over President Trump’s policies and the French presidential election, are resulting in Investors turning to safe havens. The weakening of USD has also pushed gold prices up. Spot gold hit a 3-week high of 1251.20. The bulls tested a significant resistance level at 1250 on Wednesday evening, however, ...

Devata Tseng

USD Hovers Around Support Levels Ahead of Yellen’s Speech and Health Care Bill

Today the US Congress will vote on whether to repeal Obamacare, which is President Trump’s first bill proposal since taking office. President Trump has warned Republicans that, if the healthcare reform bill fails to pass, they will lose their seats. However, if the new healthcare bill passes, that means many Americans pay a much higher amount of money on medical spending. For the markets the concern is, that if the bill fails to pass, President Trump’s other policies, such as tax-cuts and ...

Devata Tseng

Could USD/JPY Hold Above 111.00 ?

USD/JPY hit the lowest level of 111.13 since November 23 this morning, breaking the short term major support line at 111.50. USD/JPY has turned bearish since March 15, saw its longest bearish streak since January. In the past week, USD/JPY has retraced about 3.14%. The plunge was caused by the weakening of the dollar post Fed rate rise profit-taking pressure. On the daily chart, the 10 SMA has crossed over the 20 SMA, indicating the trend has turned bearish. The bears are currently edging lower ...

Devata Tseng

Dollar Tumbles on Trump Uncertainty and Position Closing

USD plunged on Tuesday, the dollar index breaking the significant support line at 100.00 and further testing the next major support at 99.50. The downtrend was held temporarily above that level. Last week the dollar index fell by 1.3%, marking the worst weekly performance in the past 8 months. Regardless of the rebound in February, the dollar index has retraced approximately 2.1% since the beginning of this year because of profit-taking pressure post the US presidential election surge. ...

Devata Tseng

EUR/USD Trades Below Major Resistance at 1.0800

EURUSD has strengthened since 15th March, breaking the significant resistance level at 1.0700, as a result of the sharp fall of the dollar caused by profit-taking pressure post the Fed interest rate announcement. We saw the release of the German PPI for February (YoY) yesterday, beating expectations and the previous figure. EUR/USD is still trading above the 10 and the 20 SMAs, indicating the trend remains upward. However, the current price is nearing the next significant long term major ...

Devata Tseng

Brexit to be Triggered on March 29

The date to officially start the Brexit procedure was finally confirmed yesterday. UK Prime Minister, Theresa May, will trigger Article 50 of the Lisbon treaty on Wednesday March 29, starting the 2-year Brexit negotiation process with the EU. The timetable is in line with her plan to begin “divorce proceedings” by the end of March. Theresa May will formally notify the EU Council President, Donald Tusk, with a letter next Wednesday. Tusk is expected to present draft Brexit guidelines to the ...