David Long

US has Started to Empty its Baghdad Embassy – Forex Trading News – June 16th 2014

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Forex Market News

I thought Isis was the Egyptian goddess of the children and protector of the dead, apparently I am ignorant, there is another ISIS about. This new ISIS (which I had not heard of until a short time ago) is a nasty bunch of thugs wanting to control Iraq and killing hundreds of innocents on the way to Baghdad. No one is sure how close they are, but the US has started to empty its Baghdad embassy, flying them out to a carrier in the gulf, that would suggest they are concerned about things.


On the other front, rebels in Ukraine are obviously being backed by Russia if they have the wherewithal to down jets. That’s some pretty heavy hitting fire power to pull one of them out of the sky. So it seems that this issue is not at rest yet.


War is generally good for the economy as it picks up growth and employment, even if expensive. In the old days, the war would be paid for by the spoils of the conquered. This is not exactly how it works these days, but it’s pretty damn close. So it is interesting to see this article, next thing we will hear is that Aunty Janet wants to invade someone!  Click to Find Out More.


Reason I am being a bit morbid is that there is a lack of other headlines about. FOMC is on Thursday morning our time and the markets will be pretty slow until then. But safe haven flows from the unrest caused by the above could well influence price action.


AUDUSD – Has rallied and put in a HH than May, that is promising. Some security in owning Aussie with its stability and high interest could be putting a bid under us, but I see this 9390-9460 area as pretty hard resistance. With momentum in the overbought territory I doubt we will have the legs to get through it at this point. Click to Find out More. 
Resistance: 9460/9522
Support: 9200/9085/8900

EURUSD – Will continue to be under pressure whilst Russia and Ukraine have their deadly squabble, plus they are not really doing much economically and Draghi is not doing enough to change that. Seems to have found a temporary floor here with larger support in the mid 1.34’s.
Resistance: 13890/14050/14260/14320
Support: 13565/13488

GBPUSD – The jobs data was good last week for the poms, what was better was Carney.  Expect 1.70 to be broken in coming weeks, looks a little stretched right now to do it, but it will happen. Click to Find out More. 
Resistance: 1.70/1.7060/1.7370
Support: 1.66/1.63

NZDUSD – Wheeler oddly raised rates, I just don’t see that that was necessary, they simply are not that large or going that fast to require the brakes yet. Moved to early too fast is my judgement. Anyways, the effect is that he kiwi is now back to testing resistance and is well overbought.
Resistance: 8745/8842
Support: 8523/8434/8090

USDCAD – Poloz is still concerned so the Loonie weakened. However, not for long and we are still stuck in that range.
Resistance: 11170/11233
Support: 10802/10715

USDJPY – Yen is also range bound, in fact, apart from the Euro and the Pound, they are all a little range bound. But that gives us opportunities in the crosses. Back to this one though, an inside bar as we sit on the 50ema shows us nothing.
Resistance: 105.57/108.35/110.50
Support: 101.40/100.62/100/99.80

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