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Devata Tseng

Can EUR/JPY Hold Above the Uptrend Line Support ?

We will see the release of a series of Markit PMI figures in Feb in the early European session today. German Manufacturing, Services, and Composite PMIs, at 08:30 GMT, followed by the Eurozone Manufacturing, Services, and Composite PMIs, at 09:00 GMT. EUR/JPY has seen a noticeable retracement since the beginning of Feb, breaking the two-month consolidation pattern. On 8th Feb, the downtrend was held above the support line at 119.00, where the downside mid-term major uptrend line support ...

Devata Tseng

AUD/USD Bull Nears Mid-Term Major Resistance Zone

AUD/USD has turned bullish since early January, as a result of the retracement of the dollar and the rebound of commodity prices. The Aussie has been one of the best currency performers year to date. The Reserve Bank of Australia (RBA) announced the rates remain unchanged at a record low of 1.5% On 7th Feb, implying the rates would remain on hold in the short term. The current price is still trading above the downside near- term major uptrend line support. However, the price has retraced on ...

Devata Tseng

Gold Nears the Near Term Major Resistance

The dollar index plunged 0.61% on Thursday 16th Feb, fell to a 1-week low of 100.38. Despite the better-than-expected US housing market data (Jan) and the initial jobless claims (for the week ending Feb 11), the dollar index has seen the biggest intra-day fall since the beginning of Feb, indicating the end of the uptrend of the month. The retreat of US treasury yields from the high after Yellen’s hawkish testimony, and the noticeable drop of the industrial production (Jan), are likely to be two ...

Devata Tseng

GBP/USD Trades Below Convergence of Two Major Resistances

GBP/USD has rebounded since 16th January, trading above the downside short-term major uptrend line support. However, the bullish momentum has waned since early February, as a result of the strengthening of the dollar. On Tuesday 14th Feb, the uptrend line support was broken after the Fed Chair Yellen’s hawkish testimony. The support has turned into the near-term major resistance. The price is currently trading below the major resistance zone where the two resistances converge: the uptrend line ...

Devata Tseng

Yellen Hawkish Testimony Weighs on EUR/USD

The Fed Chair Yellen made her first day of her testimony before the Congress at 15:00 GMT on Tuesday 14th Feb, which was the first testimony she did after Trump took office. She adopted a hawkish outlook, which pushed the dollar and the Treasury yields higher. She stated that waiting too long to remove accommodation would be unwise. She said “If job gains and rising inflation continue as the Fed expects, an increase in the benchmark federal-funds rate likely would be appropriate at our upcoming ...

Devata Tseng

GBPJPY Retreats as Trading Below Downtrend Line Resistance

A series of important EU and UK economic figures were released this morning. The Eurozone’s economic engine, Germany, has seen its 2016 Q4 GDP first readings rose to 0.4% q/q, from 0.1% in Q3, however, lower than the expectations of 0.5%. In addition, the GDP for Q3 was revised lower to just 0.1%, from 0.2%. The Q4 GDP y/y n.s.a fell to 1.2%, from 1.5% in Q3, and lower than the expectations of 1.7%. The German ZEW economic sentiment and current situation in February also underperformed. The ...

Devata Tseng

EURUSD Trades above Support Ahead of German and Eurozone Q4 GDP

Tomorrow we will see the release of the German 2016 Q4 GDP first readings (YoY and QoQ) at 07:00 GMT, and the Eurozone 2016 Q4 GDP second readings (YoY and QoQ) at 10:00 GMT. The German GDP final readings (YoY) has been volatile in the range between 1.3% and 3.1% since Q2 2015. The expectations for the 2016 Q4 GDP is 1.7%. The Eurozone GDP final readings (YoY) have oscillated within a narrow range between 1.6% and 1.7% since Q3 2015. The expectations for the 2016 Q4 GDP second readings is 1.8%, ...

Devata Tseng

USDJPY Rebounds and Tests Major Downtrend Line Resistance

The Chicago Fed President Charles Evans, a FOMC voting member, made a speech yesterday. Evans is regarded as a dove in the FOMC. He stated that he supports gradual interest rate hikes, three rate hikes this year are not unreasonable, as he foresees Trump’s fiscal policies will likely boost inflation and economic growth. In addition, he said the inflation must hit the 2% target for the Fed to maintain its credibility. In order to bring the inflation up to its 2% target, the Fed must keep the ...

Devata Tseng

NZDUSD Tests Key Support Post Fall on Dovish RBNZ

Wednesday 8th Feb, at 20:00 GMT, the Reserve Bank of New Zealand (RBNZ) announced the Interest rates remain unchanged at a record low of 1.75%, in line with expectations. The RBNZ adopted a dovish outlook, forecasting the rates will remain at this level until June 2019, tempered by global uncertainty. The statement for the year implies no further rate cuts and rate hikes in the following two years or longer. The RBNZ’s dovish statement follows the Reserve Bank of Australia (RBA) announcement ...