EUR/USD broke above Friday’s range, which was set during the release of the US NFP. After a directionless Friday session, the Monday session shows bullish decision. The market is bullish in the short-term towards the 1.38 handle ahead of Wednesday’s FOMC meeting minutes. Note that the high from last week is at 1.3820. If the market pushes above that, it will also likely break a falling channel resistance, and give a bullish signal. GBP/USD came off Friday’s consolidation price action…

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EUR/USD edged lower this week, continuing a bearish mode since it retreated from the 1.3966 high in March. The ECB event risk on Thursday weighed on the euro because the ECB remained dovish. When we look a the daily chart , we see that the bearish run in the past few weeks is within a bullish market. There is still downside risk toward the 1.36 handle, where the 200-day SMA looms. However, with the daily stochastic below 20, I would not be surprised if we get a bullish attempt early next week even before 1.36…

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The key event risk today was ECB’s monetary policy statement and the press conference that followed. While the bank announced so change to its policy, it did mention that it had more discussion of QE, and it did expect a prolonged period of low inflation. This basically keeps the hope alive that the ECB will still reduce rates or apply some other method of loosening policy. The market traded down the euro. We saw the EUR/USD crack this week’s low…

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The RBA announced that it will hold the overnight cash rate at the record low of 2.5%. Economists had mostly expected a rate-hold. Glenn Stevens statement pointed out both improvements, and continuing weakness in the economy: The AUD/USD has been bullish going into the release, though it slowed down ahead of it. The 4H chart below shows a bullish market that was trading at a projected channel resistance ahead of the RBA statement. After the statement…

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AUD/USD has been bullish since the end of January. In fact, it has now made 3 new 2014 highs in March. The daily AUD/USD chart shows a bottoming attempt. Perhaps you see an inverted head and shoulder pattern. You can also see the bullish breaching a falling trendline projected from the April 2014 high of 1.0581…

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The Australian dollar continues to point upwards, and is trading in the low-0.91 range on Monday. It’s a quiet day on the release front, as we start the new trading week. Over in the US, there is just one release on the schedule, Flash Manufacturing PMI. In Australia, there are no releases on Monday. Early […]

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Find this trade and many others on my personal trading blog. The US dollar has been losing value against some currency pairs, but now that trend seems like it may be reversing. Today I put on an order to short AUDUSD and NZDUSD; the charts below illustrate the setup. AUDUSD: This image has been resized. Click this bar to view the full image. The original image is sized 1192×710. NZDUSD: This image has been resized. Click this bar to view the full image. The original image is sized 1192×710.

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