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Devata Tseng

Technical Analysis : GBPUSD Tests Major Support

We got the UK Q2 GDP (YoY and QoQ) final readings this morning. The Q2 GDP YoY fell to 2.1%, compared to expectations of 2.2%, yet better than the previous figure of 1.9%. The Q2 GDP QoQ rose to 0.7%, better than the expectations and the previous figure of 0.6%. The marginal gain helped GBPUSD hold above the downside mid-term uptrend line support at 1.2950. The price is likely to hold or rebound at this level, as it provides a stronger support. Yet the selling pressure above the resistance ...

Devata Tseng

Technical Analysis : USDCAD Tests Major Support after Deep Retracement. USDJPY Tests Major Resistance

USDCAD rallied yesterday with strong bullish momentum after Yellen’s hawkish testimony about a rate hike this year, testing the resistance level at 1.3280. Yet the rally was followed by a very deep retracement, as it was reported surprisingly that OPEC reaches an output freeze agreement as Saudi Arabia unexpectedly agrees to exclude Iran from the freeze. Canadian Dollar strengthened after the news was released. USDCAD gave up all the previous gains from 23rd onwards. The significant support ...

Devata Tseng

Technical Analysis : USDCAD Tests Major Resistance, Gold Fails to Break the Downtrend

USDCAD remains bullish, yet it has retraced since Tuesday 27th, after testing the major resistance at 1.3240. The selling pressure above this level is heavy, the bullish momentum is likely to be restrained at this level. The resistance level is at 1.3240, followed by 1.3280 and 1.3300. The support line is at 1.3200, followed by 1.3150 and 1.3130. Today we will get the US Durable Goods and Core Durable Goods Orders for August, to be released at 12:30 GMT today. With better-than-expected figures, ...

Devata Tseng

Technical Analysis : OPEC Meeting Fails to Lift Oil Prices Above Resistance

The three day OPEC meeting took place from Monday 26th September, in Algeria, although the Algeria Energy Minister stated that output cuts or a freeze are both possible. In fact, there are still conflicts of interest between Saudi Arabia and Iran. Iran aims to reach the pre-sanction output and regain its previous market share. It will be difficult for the two major OPEC oil producers to reach an agreement. It will be more likely that nothing concrete will be achieved in the end. Fundamentally, ...

Devata Tseng

GBPUSD Tests Significant Support Line

GBPUSD has retraced since 22nd September after testing the significant resistance level at 1.3100 The trend remains bearish, yet it has reached the mid-term uptrend line support, which provides a stronger support. In addition, the daily Stochastic Oscillator is below 30, the price may hold at this level. In the near term, the trading pattern is likely to oscillate around the uptrend support line. The resistance level is at 1.2950, followed by 1.3000 and 1.3050. The support line is at 1.2915, ...

Devata Tseng

Key Resistance Tested as FTSE 100 Nears all time High

The FTSE 100 cash index rallied on 21st September, helped by the Fed’s statement. Yet it retraced after testing the significant resistance level at 6930, the selling pressure at this level is heavy. The price between 7000 and 6930 is a major resistance zone, the bullish momentum will likely be restrained when it nears. In addition, the daily Stochastic Oscillator is above 80, suggesting a retracement. The resistance level is at 6930, followed by 6970 and 7000. The support line is at 6860, ...

Devata Tseng

Technical Analysis : USDJPY, EURUSD, and Gold Test Major Resistances

Yesterday the Fed announced rates remain unchanged, ranging at 0.25% - 0.5%. Despite the sound growth in the labour market, the economic indicators have given mixed signals. The Fed has cut the medium-term economic growth projection for 2016, from 2% to 1.8%, also has lowered the Q4 inflation projection, from 1.4% to 1.3%. The announcement resulted in the slump of the dollar. The dollar index future (December) has plunged 1.27% after testing the significant resistance level at 96.00 yesterday. ...

Devata Tseng

USDJPY and EURUSD Test Key Supports Ahead of Fed Rate Decision

The Bank of Japan announced that rates remain unchanged at -0.01%, and the rate of government bonds purchase remains at 80 trillion yen a year. Additionally, the monetary policy framework and focus have been amended. USDJPY plunged after the BoJ announced that the rates and stimulus measures remain unchanged, testing the significant support line at 101.00. Followed by a sharp rebound as the BoJ stated subsequently that it aims to expand the monetary base until the inflation becomes stable above ...

Devata Tseng

USDJPY Tests Key Resistance Ahead of BoJ and Fed Announcements

USDJPY has turned bearish since 6th September as the downtrend line and the support level at 102.00 were both broken. 102.00 has turned into the major resistance level, the upside selling pressure is heavy. The Bank of Japan and the Fed will announce interest rate decisions and monetary policy statements early morning and at 18:00 GMT tomorrow respectively. According to Nikkei report, the BoJ may consider further negative rates as the focus of future monetary policy measures. The announcements ...