Daily Market Analysis from NewForex Broker

[Volfovich]

Forex News from New Forex: European shares demonstrate a downward trend

In the trading on Tuesday, July 21, European shares lose ground. The pan-European index Stoxx 600 has advanced only 0,2%. The British FTSE 100 is at 6782.91, shedding 0.10%. The German DAX edged down to 0.07% and is at 11726.96, the French CAC 40 slipped to 0.18% and is at 5133.33.

Today the euro hit a 3-month low against the US dollar in spite of the news about a new bailout deal to provide Greece with financial support. The pair EUR/USD is at 1.0812. The possible level of support is 1.0782, a low of April 24, the level of resistance is 1.0908, a high of July 17. The euro has failed to surge after the opening of Greek banks.

On Monday Greece repaid €2.0 billion to the International Monetary Fund. Thus, the fund is now ready to render financial assistance to Greece. Tomorrow the Greek government is going to carry over for consideration further austerity measures.

 

[Volfovich]

Forex News from New Forex: Technical analysis of EUR/USD

Yesterday the single currency didn’t live up to expectations of bears considering that the market will overcome a strong level of support at 1.0808. However, at the end of the trading session the euro pared earlier losses against the greenback and bumped into resistance at 1.0962. Today the pair has a mild bullish tone with a relatively wide range. The nearest level of support is seen at 1.0874 and resistance at 1.1030.

 

[Volfovich]

Forex News from New Forex: Technical analysis of NZD/USD

At the end of the Asian trading session the currency pair is traded within the immediate support at 0.6592 and resistance at 0.6690. During the last three trading days there has been a correction of a downward trend with a pullback from the low of July 16 at 0.6497 and testing the resistance at 0.6748. In spite of the correction, in the long run the market will continue consolidation inside of the descending canal which is proved by trend indicators. Oscillators are in the neutral zone, consequently it is quite risky to enter the market with long positions despite their signals. However, it is better not to shrug off the decision of NZ central bank on the interest rate which is announced today at 21:00 UTC.

 

[Volfovich]

Forex News from New Forex: Technical analysis of GBP/USD

After yesterday's pullback the pair returns to the ascending trend with the immediate level of support at 1.5580 and resistance at 1.5680.

Trades have a mild bullish tone today. In the short run it aims for 1.5674, then 1.5788 (a high of June 29). In case of its successful breach, it would target 1.5929 (a high of June 18).

Basing on data of MACD and the Stochastic Oscillator there might be a consolidation of the market within the above mentioned levels of support and resistance.

 

[Volfovich]

Forex News from New Forex: Technical analysis of AUD/USD

In the trading in Asia the Aussie continued to lose ground against the US dollar. Bouncing off the market has returned to the descending trend and the currency pair is now within the level of support at 0.7328 and resistance at 0.7408 testing the last one.

Both oscillators and trend indicators point to the further downward trend which makes short positions more preferable fixing the profit within the level of support at 0.7310 and 0.7221.

 

[Volfovich]

Forex News from New Forex: Asian markets trade in the positive zone

Upbeat data of the domestic sector earnings pushed the Japanese shares higher. Confident key figures of retail and tourism sectors contributed to the ascending dynamics of the Japanese stock market.

The Nikkei closed trades at 20,683.95 surging 0.4% in comparison with the previous trading session. The broader Topix gained 0.6% to 1,664.88, JPX-Nikkei 400 edged up 0.6% to 15,019.88.

Hong Kong stock market demonstrates a rise as well. The Hang Seng index climbed 0.5% to 25,398.85, the China Enterprises index jumped 0,.9% to 1,834.47. The main economy sectors such as finances, property and information technologies are in the green zone. The only exception was a telecom subindex. Shares of China Mobile, China Telecom and China Unicom fell when the government of China ordered them to cut broadband fees by the end of October.

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[Volfovich]

Forex News from New Forex: Oil prices dubiously rise

On Thursday the WTI oil futures have gained but the oil price is still below $50 due to the concerns over oil oversupply in the global market. On the New York Mercantile Exchange oil with the delivery in September picked up 27 cents or 0.54% and it is traded at $49.45 a barrel in the European market. On Wednesday futures fell to $49.04 (a level of April 2) tumbling 3.28% or $1.67.

Yesterday’s oil losses are explained by unfavourable data of the USA oil inventories. Last week oil inventories have unexpectedly jumped by 2.5 mln. barrels to 463.9 mln.

On the ICE Futures Exchange in London Brent oil with the delivery in September advanced 7 cents or 0.13% to $56.21 a barrel after hitting an intraday low at $55.90 (a low of July 7). Yesterday Brent shed 91 cents or 1.6%. Spread between Brent and WTI is currently $6.76 a barrel.

Pressure on oil prices is caused by the return of Iranian oil to the global market. According to the Iranian side, around 30 mln. barrels of oil are waiting for shipping. Most experts assume that Iran will need several months to increase its oil volumes.

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[Volfovich]

Forex News from New Forex: A review of Asian markets

In the trading on Friday, July 24, Japanese shares are in the negative zone falling to a week low due to the weak manufacturing data from China.

The Nikkei closed trades 0.7% lower at 20,544.53, a low of closing since July 15. The broader Topix shed 0.5% and stopped at 1,655.86, the JPX-Nikkei index 400 slipped to 0.6% to 14,929.07. The main companies-exporters are in the red zone as the yen hit 123 against the US dollar. Honda Motors and Panasonic edged down to 0.7% and 0.5%, respectively.

In Hong Kong stock market shares reached the biggest intraday low during the last two weeks. The Hang Seng index slid 1.1% to 25,128.51, the China Enterprises index slumped to 1.3% to 11,679.02. During the week the Hang Seng lost 1.1%. Significant economy sectors have considerably lost ground, shares of financial and tech companies sustain losses. The Chinese index Shanghai Composite fell 1.3% breaking a series of wins.

 

[Volfovich]

Forex News from New Forex: Technical analysis of EUR/USD

Trades have a slightly bullish tone today with the immediate support at 1.0953 and resistance at 1.1050. In the short run according to a 3-day moving average we can observe a further pullback to 1.0991 and then to 1.1087. If these levels are breached, the market might stream back to a strong resistance at 1.1203. In the mid- and long term the market will keep a bearish sentiment with the level of support at 1.0808, then at 1.0735 and 1.0659.

 

[Volfovich]

Forex News from New Forex: Technical analysis of EUR/USD

After yesterday’s rally in the European trading session the currency pair has streamed back a bit and on Tuesday the level of support is seen at 1.1029, the level of resistance is at 1.1190. According to the moving average, the main trend is still descending, however, in the frames of the intraday trading there exists possibility of a pullback to resistance at 1.1217 and 1.1245. If the bearish scenario prevails, the latter can push the market to support at 1.1001 and probably lower to 1.0973.

 

[Volfovich]

Forex News from New Forex: Technical analysis of USD/CHF

Efforts of the Swiss central bank to support the national producer slowly and permanently weaken the Swiss franc against the US dollar. On Tuesday trades have a mild bullish tone with support at 0.9566 and resistance at 0.9685. In the middle and long run the ascending trend will remain with systematic pullbacks during which the level of support will increase providing well balance for bulls. In the short run the market will test a strong resistance at 0.9648 (a high of July 20), in case of its breach we can observe the price at 0.9713 and further at 0.9862. When power goes temporarily to bears, a pullback to support at 0.9589 is possible. If the price goes lower, we might see it at 0.9566.

 

[Volfovich]

Forex News from New Forex: Technical analysis of AUD/USD

A descending trend of the Australian dollar versus the US currency has slightly weakened, during the last trading session the Aussie got stronger bouncing off the support at 0.7267, now it tests the resistance at 0.7343. Similar tendencies have been seen several times, it is likely that we observe just another pullback keeping the basic trend. On a 4-hour timeframe we can notice signs of being overbought which is confirmed by the oscillator Stochastik. However, according to the same indicator on a week timeframe there are obvious signs of being oversold. Thus, in the long run there might be a change of the main trend which has been prevailing for quite a long time. Bulls have a chance to take control and change the market tendency. It may happen that the bottom is very near.

 

[Volfovich]

Forex News from New Forex: Technical analysis of GBP/USD

On Wednesday during the Asian trading session the pound streamed back against the greenback after yesterday’s rally. The immediate support is at 1.5557 and resistance is at 1.5643. Trades have a mild bullish tone, however, according to the oscillator Stochastik, the pair is a bit overbought and it may happen that bears will dominate soon. In this case they will have to breach below 1.5510, which opens a wide path to the market to 1.5359. Otherwise, the market will have to go through 1.5643 and 1.5734, then we might observe a rally to 1.5879.

 

[Volfovich]

Forex News from New Forex: Technical analysis of XAU/USD

After a short but intensive rally the price of gold consolidated in the narrow range between $1077 — $1110 per troy oz. If the price leaves this range and slides, short positions till 1044 will become profitable. If this level is breached successfully, it might go to 1026. It is very risky to enter the market with long positions today until the price rebounds to $1232 per troy oz.

 

[Volfovich]

Forex News from New Forex: Technical analysis of USD/CAD

After a pullback during the US trading session the loonie gained support with the release of oil stockpiles data, although it later streamed back to earlier levels. On Thursday the pair trades with a mild bearish tone within the support at 1.2925 and resistance at 1.3036. The oscillator Stochastic is overbought in the 4-hour timeframe, it shows the potential for the bearish scenario. lf a bearish candle is formed below 1.2900, we can speak about a reversal aiming for 1.27-1.26.

 

[Volfovich]

Forex News from New Forex: Technical analysis of EUR/USD

After an intense rise and fall on Friday today the currency pair is traded steadily within the support at 1.0940 and resistance at 1.1055. In a 4-hour timeframe it is seen that the market has a slight bullish tone, however, a general trend is clearly descending as the market drew a falling star on Friday which obviously implies a continuation of a bearish trend. Thus, it is preferable to enter the market with a strong resistance at 1.1112 aiming for 1.0893 and after its breach further to 1.0808.

Forex News from New Forex: Technical analysis of USD/CHF

In the trading on Monday there is a slight advance of bulls in spite of the attempts of bears trying to push the market below the level of support at 0.9564 but up to now with no success. The oscillator MACD has a downward trend, however, it’s above its central line which adds some intrigue to an eternal fight of bulls and bears. The Stochastic decreases, it will soon reach the level of overbought. Thus, none of them has a clear advantage, consequently we will not sell until the price fixes below the level of support at 0.9564, sells are more likely if the support bullish candle is above the resistance at 0.9683.