Daily market analysis and financial news by Vesta Trader

[vesta trader]

British Pound Dives Post UK CPI

The British pound is not at all in a good mood, as it was seen trading lower against most of its counterparts including the US dollar and the Euro. The UK Consumer Price Index was released by the National Statistics during the London session, which came mostly in line with the forecast. The report mentioned that the UK CPI increased by 0.4% in August, compared to a 0.3% decline during the last month. However, on the other hand, the UK PPI figures missed the expectations, and registered a decrease. So, the GBPUSD pair was pressured after the release as per the Forex trading coach. The pair even broke an important support area around the 1.6200 area.

Technically, there was a breakout pattern formed on the hourly chart of the GBPUSD pair, which was breached during the London session. The pair is now trading below both the important moving averages – 100 and 200. This is not at all good for the British pound buyers, as it might ignite sharp downside in the pair moving ahead. Currently, the pair is bouncing from the 50% fib retracement level of the last move higher from the 1.6050 low to 1.6275 high. So, there is a chance that the pair might bounce from the current levels, but the broken support area could act as a resistance in the short term.

GBPUSD 09.16.2014

So, if the pair fails to move higher, then a break of the 50% fib level might take the pair towards the 1.6120 support area.

 

[vesta trader]

USDCHF Needs To Break 0.9310 To Get Going

The US dollar resiliency continued yesterday, as the USDCHF pair managed to hold the ground. The NY Empire fed manufacturing index and the US industrial production data was published, which was somehow mixed, as one registered a gain and other decline. So, the US dollar mostly consolidated during the NY session yesterday. The US PPI data will be published today, which is expected to remain at 0.0%. Let us wait and see how the outcome plays out and affects the US dollar in the near term.

Technically, there is a critical triangle forming on the hourly chart of the USDCHF pair, which is likely to act as a catalyst for the US dollar moving ahead. About a few hours ago, the USDCHF pair managed to close below the 100 hourly moving average, which is not a good sign. If the mentioned moving average now acts as a resistance for the pair, then there is a chance of a move lower. However, there is a monster support area around the 0.9310 level. The 200 hourly moving average, triangle support trend line and the 38.2% fib retracement level of the last leg from the 0.9175 low sit around the stated support area. So, the US dollar sellers might struggle to break the same, but if they succeed, then more losses are likely in the short term.

USDCHF 09.16.2014

On the upside, the broken 100 hourly moving average might present the US dollar buyers a challenge, followed by the triangle resistance trend line.

 

[vesta trader]

Euro Likely To Trade Higher Against US Dollar

The Euro finally showed some signs of the uptrend in the past few sessions. The EURUSD pair jumped towards the 1.30 level yesterday, but failed to break it. However, it did not slide abruptly after that and is currently holding a crucial support area. There was an important economic release in the Euro zone today. The consumer price index for the Euro area was published by the Eurostat. The outcome was a bit on the higher side, as the CPI came in at 0.4% if we consider year-over-year change whereas the market was only expecting a 0.3% increase. So, the outcome is on the positive side as per 7 winning strategies for trading forex.

Technically, there is a very important bullish trend line on the hourly chart of the EURUSD pair, which has held the downside in the pair on more than a couple of times. The most significant bullish sign is that the pair is now trading above the 100 and 200 hourly moving averages, which might support the Euro bulls in the short term. On the upside, the 1.2985-90 is the first hurdle for the Euro buyers, followed by the 61.8% fib retracement level of the last drop from the 1.3152 high to 1.2853 low.

EURUSD 09.17.2014

If the pair moves a bit lower from the current levels, then there is a chance of a retest of the trend line. It would be very hard for the Euro sellers to break the 1.2930 support area in the near term.

 

[fxapex]

NZDUSD has made a good upward movement and i think that is enough as the USD is one of the strong currencies and there are are chance of it facing resistance .