Canadian dollar declined versus its US counterpart from maximum of 0.9445 hit on May 2 to 0.9769 today. The pair USD/CAD managed to break above the 9-month bearish trend line at 0.9758.
Currency strategists at BMO Capital Markets claim that if the greenback closes the day above this level, the short-term trend will reverse upwards within the longer-term downtrend from October.
The specialists expect that the greenback will firstly consolidate at the current levels or even pull lower before the...
British pound was the worst-performer after the greenback during the past 3 month. Sterling is at 35-year minimum versus the currency basket (Bloomberg Correlation-Weighted Indexes) as slowing growth forces the Bank of England to keep the borrowing costs low while inflation keeps rising.
Currency strategists at Lloyds Bank Corporate Markets claim that the main effect of the UK austerity measures will be seen during the next 2 quarters. The specialists think that the Bank of England would prefer...
The situation around Greece is getting tenser. Today the country will ask the EU and the IMF to increase 110 billion-euro ($155 billion) bailout it got last year or give it more time to repay official loans. The problem is that Europe’s donor countries, primarily Germany, demand that in return Greece should deepen austerity measures.
Things got more complicated from the political point of view due to the scandal with IMF Managing Director Dominique Strauss-Kahn who was arrested in the United...
The single currency declined on Friday versus the greenback breaching support in the 1.4145/55 area.
Technical analysts at Commerzbank think that the pair EUR/USD will drop this week to the 200-week MA at 1.3998 and then fall to 1.3770 and 1.3431/1.3375 (55-week MA and 11-month support).
According to the bank, resistance levels for euro will be found at 1.4260/70 and 1.4341. If the European currency closes below the 55-day MA at 1.4270, the outlook will be regarded as quite bearish.
On the weekly chart the bulls managed to move even higher: dollar’s rate was growing during the second week in a row.
At the same time the prices have reached the resistance of the 9-day MA – Tenkan-sen (1). If the bulls fail to overcome this level and lift up the market, the pair’s advance was just a correction.
The bearish Cloud is still wide. The majority of lines are declining (Tenkan, Senkou Span A and B). However, Kijun-sen went sideways that gives some hope for an...
Although the priced have recovered a bit they didn’t manage to return above Tenkan-sen and Kijun-sen that merged together keeping moving horizontally (1) that means that the market has rather strong sideways trend. So, the pair USD/JPY has chance to edge upwards.
Chart. Weekly USD/JPY
As it was expected, last week the prices were moving inside the Ichimoku Cloud. On Friday the greenback closed below the lower border of Kumo. The narrowing bullish Kimo (3) shows...
British pound kept declining during the last week: the prices broke down the Turning line (1) that acted as an important support. The next support level is the Standard line.
The trend for GBP/USD remains neutral. All lines of the Indicator keep moving horizontally (1, 2, 3, 4).
Chart. Weekly GBP/USD
On the daily chart the outlook is much more bearish.
The prices have already broken down below the longer-term Standard line, while Kijun-sen has crossed Tenkan-sen...