Forex Market News
UK, Carney says the slack is out of the market now, ie the economy is at full pace but he is not in a hurry to raise rates. The market bailed out of pounds because of this, however, I still see no reason to be bearish the sterling.
Other than that, this week has been about Russia and its intentions. It has, again, pulled back from the brink and withdrawn troops from the border. The sanctions and uncertainty has had its effect, probably not as the EU wanted, as Germany slides in both confidence and in real terms of trade.
DATA HIGHLIGHTS TODAY – UK GDP. Canadian Manufacturing Sales. US PPI & Consumer Sentiment.
AUDUSD – Minor resistance level at 9325, and we could look at this market has having done 2 mini cycles under the 50ema. It is still in the middle of the range, but I get the sense it’s time to break out of that and if any selling appears in next few sessions, creating an entry I think it is worth looking at.
EURUSD – Two high test bars, last one an inside bar. Doesn’t look like we will get the retest of the 1.35 level as I wanted, at this stage any rate.
GBPUSD – A low test bar, but we have a dilemma in that the significant lows of May have been broken. This is the first shot across the bows of the bulls uptrend. If a lower high is produced in the next wave(s) then we will have technically broken the uptrend. That is some time away yet, and we could be looking for retracement of this well oversold pair.
NZDUSD – Is now gaining strength for its phase 2 pullback. We had the reversal bar and now the confirmation continuation bar, the first since mid-July.
USDCAD – Weekly is now a reversal bar, daily has strung together 4 seller bars as momentum peels off. Looking for this to retrace back to the long term trend line around 1.07
USDJPY – Is weakening thanks to Russia’s withdrawal. Is in middle of phase 1, so could go down time frames to participate in it, or wait to until the end of the cycle.