USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.2056; (P) 1.2212; (R1) 1.2321

USD/CAD continues to stay in established range of 1.1985 and 1.2389 as triangle consolidation continues. Though, short term outlook remains unchanged. Further rally is still in favor. Also, fall from 1.3005 should have completed at 1.1818. Break of 1.2514 resistance will confirm this case and bring retest of 1.3005/15 resistance zone. On the downside, though, below 1.1985 will indicate that fall from 1.3005 is probably resuming towards 1.1464 support instead.

Read the rest of this entry »

USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.2104; (P) 1.2165; (R1) 1.2260

USD/CAD’s rise today suggests that sideway trading from 1.2389 might be completed. Intraday bias is now on the upside as long as 1.2065 minor support holds and further rise should be seen towards 1.2514 resistance. As discussed before, fall from 1.3005 might have completed at 1.1818 already. Break of 1.2514 resistance will confirm this case and bring retest of 1.3005/15 resistance zone. On the downside, though, below 1.2065 will indicate that fall from 1.3005 is probably resuming 1.1464 support instead. Read the rest of this entry »

GBP/JPY Mid-Day Outlook

Daily Pivots: (S1) 137.32; (P) 138.20; (R1) 139.59

GBP/JPY’s recovery from 133.09 was limited below 140.71 resistance and weakens again today. 4 hours MACD’s cross below signal line indicates that an intraday top is formed and dampens the immediate bullish case. Intraday outlook is turned neutral for the moment. On the upside, above 140.71 will indicate that rise from 133.09 has resumed. Also this will affirm the case that a short term bottom is in place at 133.09 and bring rally towards 148.57 resistance next. Break there will confirm this case. On the downside, though, below 133.09 will indicate recent down trend is still in progress for key long term support at 129.32 before completion. Read the rest of this entry »

Daily Pivots: (S1) 1.3274; (P) 1.3345; (R1) 1.3438

EUR/USD’s rise continues in early US session and reaches as high as 1.3585 so far, taking out mentioned 100% projection of 1.2329 to 1.3290 from 1.2549 at 1.3510. At this point, intraday bias remains on the upside as long as 1.3430 minor support holds. Focus now turns to 1.3768 cluster resistance. On the downside, below 1.3430 minor support will turn intraday outlook neutral first. But another rise is still in favor as long as 1.3250 support holds. Read the rest of this entry »

USD/JPY Daily Outlook

Daily Pivots: (S1) 90.75; (P) 91.81; (R1) 92.47

USD/JPY falls sharply to as low as 88.54 today and the strong break of 90.92 low confirms that decline from 110.66 has resumed. At this point, short term outlook will remain bearish as long as 91.15 resistance holds. The current decline is expected to extend further to next target of 100% projection of 124.13 to 95.77 from 110.66 at 82.3. On the upside, while some recovery might be seen, break of 93.90 resistance is needed to indicate that a bottom is in place. Otherwise, short term risks remain on the downside. Read the rest of this entry »

Daily Report: Euro Leads Rebound against Dollar, SNB to Cut Again

Dollar’s decline continues today even though the $14b automaker rescue bill is passed in House and is set to vote in Senate on Thursday. One important thing to note is that dollar’s fall is lead by strengthen in European majors, in particular the Euro which is topping this week’s top movers chart. Swissy follows Euro’s strength despite expectation of another 50bps cut by SNB later today. Sterling is catching up in early US session as EUR/GBP retreats mildly. However, strength in Australian dollar and Canadian dollar is not apparent so far as both are still kept below this week’s high against the greenback. Yen crosses remains pretty steady so far except the apparent strength in EUR/JPY. Read the rest of this entry »

Daily Report: Asian Stocks Firm as Auto Bailout Deal Agreed, Dollar and Yen Soft
by ActionForex
Dollar and yen trade with a soft tone in Asia today as Asian stocks rally for the fourth day, supported by news that Democrats and White House agreed on a $15b bailout deal for the big three automakers in US. Congress could vote on the plan as early as Wednesday, which includes appointed of a “car czar” who could force the automakers into Chapter 11 bankruptcy if they don’t come up with a business plan by Mar 31. MSCI Asia Pacific index climbs mildly to 83.65. Dollar index is mildly down to 85.67 level. Crude oil and Gold recover mildly to 43.49 and 779.5 respectively.

Technically speaking, main focus remains on where Dollar index is completing a head and shoulder top (ls: 87.87, h: 88.46, rs: 87.68) reversal pattern, or it’s just unfolding as triangle consolidation. Dollar index continues to press neckline support (now at 85.67) but there isn’t follow through selling for a breakthrough yet. As mentioned before, sustained trading will add much credence to the case that a medium term rise from 71.31 has concluded at 88.46 already. Further break of 83.11 will confirm this case and bring deep medium term correction to 75.89/80.38 support zone. However, note that it’s usually hard to predict whether the pattern is a head and shoulder or a triangle before it’s completed. Even after a break of the neck line support, any strong rebound above 83.11, followed by break of 87.68 will indicate that medium term up trend in the dollar index is still in force. In short term, though, favor is on the downside as long as 86.47 minor resistance holds.

Read the rest of this entry »

Daily Pivots: (S1) 92.30; (P) 93.94; (R1) 94.82

USD/JPY recovers mildly after hitting 92.64 earlier today. Though, at this point, intraday bias remains on the downside as long as 94.25 minor resistance holds. Decline from 100.54 could extend further to retest 90.92 low. On the upside, above 94.25 will turn intraday outlook neutral first. Also, note that the lack of impulsive structure of the fall from 100.54 so far is still arguing that it might be part of the consolidation that started at 90.92. Above 95.74 will indicate that fall from 100.54 has possibly completed. The corrective structure in turn suggests that rebound from 90.92 is still in progress and stronger rally should be seen to 100.54 or above before completion. Read the rest of this entry »

Comex Gold (GC)

By : OilNGold
Gold weakens sharply today and is now pressing mentioned 786 minor support. As discussed before, failure below 824.5/838.8 , followed by break of 786.20 support will indicate that correction from 681 has completed. In such case, intraday bias will flip back to the downside first. Further break of 731.4 support will maintain the original bearish view. In such case, fall from 936.3 should be resuming for 681 low and below. On the upside, however, decisive break of mentioned 824.5/838.8 resistance zone will be an early alert that whole correction from 1033.9 has completed and stronger rise should then be seen to test 936.3 resistance first.

In the bigger picture, as mentioned, there is no confirmation that correction from 1033.9 has completed yet. On resumption, it should target next key support zone of 100% projection of 1033.9 to 739.8 from 936.3 at 642.2 and 61.8% retracement of 371.3 to 1033.9 at 624.41. However, break of 824.5/838.8 resistance zone will be the first alert that such correction has completed. Further break of 936.3 resistance will confirm this case and bring retest of 1033.9 high.

Comex Gold Continuous Contract 4 Hours Chart

Comex Gold Continuous Contract Daily Chart

Comex Gold (GC)

At this moment, Gold is still struggling below mentioned 824.5/838.8 resistance zone. Outlook remains unchanged. Intraday bias remains mildly on the upside as long as 786.20 minor support holds. Decisive break of mentioned 824.5/838.8 resistance zone will be an early alert that whole correction from 1033.9 has completed and stronger rise should then be seen to test 936.3 resistance first. However, on the downside, failure below 824.5/838.8 , followed by break of 786.20 support will indicate that an intraday top is formed. Further break of 739.2 support will maintain the original bearish view. In such case, fall from 936.3 should be resuming for 681 low and below. Read the rest of this entry »