USD/CAD – Will 1.3000 Give Way?

USD/CAD – Will 1.3000 Give Way?

by admin Chart Of The Day

USD/CAD has once again found support at the 1.3050 level making a triple bottom on the hourly chart. With oil stuck at the $50/bbl level the loonie appears to be stalling along with crude.

Tomorrow, however, the market will hear from the BOC and the central bank is very likely to maintain a neutral posture given the recent strength in labor data. With Canadian economy performing better than expected and with PM Trudeau using fiscal stimulus to help drive demand, the BOC may not feel obligated to ease further. That’s likely to put a mild bid the loonie and could test the 1.3050 support once again if Governor Poloz suggests that no further accommodation is likely.

NZD/JPY – Will 86.00 Give Way?

NZD/JPY – Will 86.00 Give Way?

by admin Chart Of The Day

NZD/JPY – Will 86.00 Give Way?

Fundamentals

The kiwi/yen pair is the quintessential carry trade candidate in the forex market as the spread differential between the two currencies in expected to expand. Yet the pair has been in a slow drift downward and may now tip below the 86.00 level. The key reason is concern by the market that the RBNZ may choose to temper its tightening policy given the slowdown in demand for the country’s prime export – milk. With New Zealand economy showing some signs of exhaustion of growth the monetary authorities in New Zealand may choose to halt the rate hike cycle for now. Meanwhile the yen has been surprisingly strong as US yields remain contained and some risk aversion sentiment is starting to creep in to the market. Tonight’s RBNZ decision may be the key to the pair path for the near term. If the central bank sounds dovish the pair could tumble through the 86.00 level in a flash.

Technicals

Having set a series of lower highs NZD/JPY is in a clear bearish trend with 86.00 representing key support for the longs. A break there opens up a run towards 84.00 while a break above 88.oo neutraizes the bearish bias and opens up the prospects of 90.00

EUR/JPY – Will 140.00 Give Way?

EUR/JPY – Will 140.00 Give Way?

by admin Chart Of The Day

Fundamentals

EUR/JPY has been pushed and pulled in opposite directions as euro has risen while USD/JPY has fallen in the wake of BOJ’s assertion that it will no expand monetary policy anytime soon. The pressure on USD/JPY may continue especially if global equities continue to correct, but the short covering rally in euro may soon run out of gas and help push the pair lower. The euro has been remarkably resilient as the unit bounced more than 100 points off the post NFP lows on the back of comments from ECB officials that they are not going to pursue any unconventional policies just yet. But if the economic situation in the EZ does not improve soon policymakers may have no choice. Another reason for euro strength has been its current account position as the massive trade surplus generated by Germany has helped to prop up the pair. Tonight’s trade surplus therefore could be key to euro’s near term prospects and if it misses its mark it could drag EUR/JPY down with it.

Technicals

EUR/JPY now faces a critical support level at the 140.00 level and a break there could bring a test of the 138.00 level as the pair collapses further. To the upside the pair faces resistance at the 142.00 figure and then at 144.00 as the lower highs weigh on the unit.

Will EUR/USD Give Up 1.30? Weekly Forex Techs 4.29-5.03.13

by Boris Schlossberg Video

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