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Devata Tseng

Dollar Strength Depends on Interest Rate Clues

The Dollar Index (DXY) Today, Fed Chairman Janet Yellen will make a speech at 14:00 GMT. In addition, the US Q2 GDP Growth second estimate (QoQ) annualized figure, and Goods Trade Balance for July, to be released at 12:30 GMT. The dollar index (DXY) rallied yesterday, helped by the positive Durable and Core Durable Goods Orders figures. It tested the major resistance at 94.73 then pulled back. This morning it tested the support level at 94.50 then bounced off. It is currently trading around the ...

Devata Tseng

Will Yellen Remain Dovish ?

Today, Fed Chairman Janet Yellen will make a speech at 14:00 GMT. In addition, the US Q2 GDP Growth second estimate (QoQ) annualized figure, and Goods Trade Balance for July, to be released at 12:30 GMT. The advance estimate of the US Q2 GDP (QoQ) released on 29th July was 1.2%, less than half of the expectations of 2.6%. The dollar index fell 1.41%, which has been the biggest intra-day fall in two and a half months. The Goods Trade deficit rose to -$63.30 bln in June, from -$60.59 bln in May. ...

Devata Tseng

Dollar will be the Key this Week

The Dollar Index Future (DXY) The dollar has rallied from 23rd to 24th Aug helped by the highest level of New Home Sales figure since Oct 2007. On the 4 hourly chart, the dollar index future (DXY) broke the upside major downtrend line resistance at 94.53 on 24th Aug by a long bullish candle. It has been testing the next major resistance level at 94.73 since then. Keep an eye on the upcoming US economic figures. With positive readings, DXY will likely break the resistance at 94.73. The next ...

Devata Tseng

Market Looking to Data and Yellen for Clues

Fed Chairman Janet Yellen, will make a speech at 14:00 GMT on Friday 26th August, which will influence the market sentiment and the strength of the dollar. Today we get a series of economic figures out of the US. Initial Jobless Claims (the week ended 19th Aug), Durable Goods Orders (MoM) for July, and Core Durable Goods Orders (MoM) for July, to be released at 12:30 GMT. Services PMI and Composite PMI, at 13:45 GMT. Since FOMC’s dovish statement on last Wed 17th Aug, the New York Fed President ...

Devata Tseng

GBPUSD Tests Downtrend Resistance

GBPUSD Sterling broke the major resistances at 1.3200 and 1.3230 this morning as a result of the earlier weakening of the dollar. The price further tested the next resistances at 1.3250 then pulled back as the dollar is turning strong, weighing on GBPUSD. It is currently oscillating around the level at 1.3230. On the daily chart, GBPUSD is near the downtrend line major resistance level at 1.3250. In addition, the daily time frame KD is above 80, suggesting a retracement. The Brexit may not be ...

Devata Tseng

Sterling Breaks Major Resistance

GBPUSD hit a 2-week high of 1.3210 on Tuesday 23rd, from the low of 1.3033 on 22nd Aug, a 1.36% rise. Yet it pulled back as 1.3200 is a major resistance level. It rebounded this morning after tested the support level at 1.3160, also because the dollar is currently pulling back after a rally helped by the US New Home Sales figures. The 4 hourly KD of the dollar index is at a high level, suggesting a pullback, therefore, GBPUSD rallies this morning and broke the resistance level at 1.3200 as a ...

Devata Tseng

Silver Turns Bearish after Hitting a 7-Week Low

Silver Spot On Monday 22nd Aug, a rebound of the dollar weighed on silver, resulted from the hawkish comments made by Fed Vice Chairman Fischer. Silver spot opened low and broke the down trend channel, plunged to the intra-day low of 18.70, from the high of 19.761 on 19th Aug, a 5.4% fall. It has formed a head and shoulder pattern, suggesting increased upside selling pressure. Yet the daily KD indicator is at below 20, and the daily CCI is also at a low level, suggesting a rebound prior to a ...

Devata Tseng

Dollar Choppy on Fed’s Conflicting Comments

The recent moves of the dollar seem to be a bit irrational as a result of conflicting comments from Fed members. The dollar index rebounded on 18th Aug, the next day broke the upside downtrend channel resistance at 94.49, helped by the hawkish comments from New York Fed president Dudley and the San Francisco Fed president Williams, after hitting a low of 94.03, where near the 61.8% Fibonacci retracement level at 94.06. This is after the more dovish stance taken by Fed Chairman Janet Yellen in ...

Devata Tseng

Can DAX Break the Channel Resistance ?

German and Eurozone Manufacturing, Services and Composite PMIs for Aug, will be released at 08:30 and 09:00 GMT+1 on Tue 23rd Aug. Although the German Manufacturing PMI in July fell slightly to 53.8, from 54.5 in June, it was the strongest expansion in the past four and a half years. In addition, output grew at the fastest pace since Apr 2014, helped by increased demand and the processing of inventories. Input costs rose for the first time in a year. German Services PMI rose to 54.4 in July, ...