Market Analysis

01/29/2015 - 07:05
The Federal Reserve decided to wait and see what will happen with the US economy – this is a balanced stance, but still more hawkish when those of the other central banks, so the prospects for USD are rather bullish, though trading will be mixed and unsteady. The US will release unemployment claims at 13:30 GMT. EUR/USD descended to 1.1280. Concerns about Greece have risen as the nation’s new Prime Minister Alexis Tsipras, challenged international creditors on Wednesday by halting privatization...
01/26/2015 - 14:51
The opposition anti-austerity party Syriza has won Greek election. Syriza gets 149 seats in Parliament (out of 151 needed for majority) and has made an alliance with the Independent party to gain the majority needed to take over from New Democracy/Pasok. The market will be now looking for every piece of news about Greece’s negotiations with the creditors, but we don’t expect any fatal announcements in the coming sessions. This means that EUR/USD has room for correction/consolidation. EUR/USD...
01/26/2015 - 09:45
By: Dima Chernovolov • USD/CAD approaches resistance level 1.2500 • Likely to rise further to 1.2750 and 1.3000 USD/CAD has been rising sharply in the last few months inside the extended intermediate impulse wave (3) which started in September of 2012. USD/CAD earlier broke out of the two consecutive progressively-steeper weekly up channels (as you can see from the weekly USD/CAD chart below) – signaling the intensification of the bullish pressure on this currency pair. USD/CAD last weekly...
01/26/2015 - 09:43
By: Dima Chernovolov, FBS • GBP/CAD rises inside primary impulse wave ③ • Likely to rise further to 1.8800 and 1.9000 GBP/CAD opened this week with the sharp upward gap which follows the earlier breakout of the major resistance level 1.8580 (which has been reversing this currency pair from February of last year). The breakout of this resistance level continues the preceding sharp intermediate impulse (3), which belongs to the 3rd primary impulse wave ③ from last November. This primary impulse...
01/23/2015 - 17:15
The main event of the past week was the long-awaited announcement of the quantitative easing program by the European Central Bank – as they say, better late than never. The ECB has joined the global currency war. This made EUR/USD decline to the target levels in the 1.12 area. What’s next? Greek Parliamentary election on Jan. 25 will be a new challenge for the euro. According to the latest polls, the left coalition Syriza is increasing its lead over the ruling party. Syriza will likely win and...
01/22/2015 - 17:50
-          ECB will buy 60 bln euro per month of assets until end of Sep. 2016 -          ECB will keep buying bonds until inflation substantially improves – flexible condition -          The total size of the program is 1,14 trln euro – more than the market has expected -          Asset purchases will be decentralized: national central banks will have to bear most of the risk -          The risk will be shared by all of the euro area’s central banks on purchases of securities of European...
01/21/2015 - 18:58
Thursday will be a day of great volatility in EUR/USD as the ECB is expected to announce QE. There’s talk that the regulator still hasn’t made a decision. The market is very nervous & there’s an extremely high risk of a knee-jerk reaction in euro: the pair shoot to the upside and then plunge. As a result, market players should be especially careful with stop & entry levels. GBP/USD lowered to 1.5100 as the Bank of England released dovish meeting minutes. Pound has strong support in the...
01/20/2015 - 15:00
US dollar is on the strong foot versus all currencies, but Swiss franc and British pound. Wednesday will also be full of different events from the US President’s Obama speech and the start of the World Economic Forum in Davos to the important data releases. EUR/USD failed to recover on Tuesday even despite good German data. Traders await the ECB’s meeting on Thursday. Below 1.1560 the currency will tests levels under 1.15. Resistance is at 1.1660, 1.1700 and 1.1750. USD/JPY recovered to the...

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