Daily news from NewForex

[Anna Mon]

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

The second week we have seen a strengthening of the American currency against the Swiss franc in the long term. The opening of trading in Europe today also brought no surprises. This market continues to grow but at a slower pace. Despite the slowdown in the time range on the four-hour chart we can see a steadily progressing market. And we see an increasing trend. This is confirmed by the ADX indicator. However, in the short term, the potential of the bulls began to weaken because the +DI falls below 20. In the medium and long term trend of this market remains.

NewForex Analyst
Luigi Campo

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

After the opening of the trading session in Europe, this currency pair is characterized by a multidirectional flow of trading. The price of a pair is retained within the support level at 1.2267 and resistance at 1.2397. On the four-hour chart the trend shows a moderately bearish tone that suggests further price weakness. However, in the medium and long term a reversal is possible because on the daily chart MACD histogram has almost reached the center line. At the same time the ADX reports about formation of a trend.

NewForex Analyst
Luigi Campo

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

During the trading session on Monday, this currency pair remains within the levels of support at 1.0544 and resistance at 1.0618. This shows an unsuccessful test of this because the index trend has a mild bearish tone. On the four-hour chart exponential moving average with period 20 and 55 days still directed downwards and continue falling. MACD histogram remains in the negative zone with a weak hint of a reversal. Stochastic oscillator started to grow and sends a signal to buy. In relation to further developments in this market one should pay attention to today’s speech by M. Draghi and its results.

NewForex Analyst
Luigi Campo

Fundamental analysis from New Forex: The Asia-Pacific region

Shares of Asia-Pacific region are trading weak today after the increase in US yields has undermined growth of markets with emerging economies triggering the outflow of funds from the regions. In the result the emerging economies are dumping their assets while growing the US dollar opens broad prospects for aggressive monetary initiatives of the fed in the coming month.

The widest index of MSCI in securities of Asia Pacific without Japan lost 0.1% and trades near six-month lows. Nikkei 225 gained 0.4% on weak yen, and jumped to 11-month highs. Shares on Wall street also weakened: the Dow Jones lost 0.19%, the S&P and the Nasdaq lost 0.24 and 0.23%.

Many emerging market currencies remain under pressure due to fears of investors that their money can return back to the US. The Malaysian ringgit came to a 14-month low while the Philippine peso reached a low of 2008. The US dollar strengthened in mid-year highs against the yen, which is on the defensive position today. Aussie is seen near five-month lows. The Canadian dollar received support from the reversal of energy prices and is trading above all major currencies today.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: Europe

In Europe, stocks lost value on Friday, but they are recovering today. On Friday investors’ activity was limited due to the interest in cyclical shares and undermined by a drop in shares of miners and power engineers.

The pan-European Eurofirst 300 index lost about 0.5% but in general this shows good prospects for growth for the past two weeks. This is largely due to the newly elected US President who wants to increase spending on infrastructure projects. The index of the banking sector in Italy fell 2.5% to its lowest level since October 5. This happened because of the burdened constitutional referendum in the course of which can be removed reformist government of Renzi.

The single European currency is stable today. But it is still close to 12-month lows against the U.S. dollar. The Swiss franc is increasing due to growing interest in European financial shares. The British pound weakened against most major currencies. Despite infrastructure plans for the new US President which can raise the price of the metals, their prices can significantly be affected because of the dollar rally. So investors have become more careful to growth of Outlook European equities under the influence of the American President.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

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

On Tuesday trading on this currency pair flow is quite calm. The price remains within the next levels of support at 1.0602 and resistance at 1.0676. Leaning against strong support in the area of 1.0575 this market took up a bullish mood light with obvious signs of oversold according to the Stochastic oscillator on the daily chart. But it is too early to talk about changing the current trend. On the four-hour chart MACD histogram is still in negative zone. But it started to decrease and begins to supply a signal to buy.

NewForex Analyst
Luigi Campo

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

Quotes on this currency pair at the end of trading in Asia and the opening of the European trading session is seen within the support at 0.7022 and resistance at 0.7116. In this timeframe the market has a moderate bullish mood and the price has shifted to growth from the start of the week.The Stochastic oscillator is already talking about overbought of the currency pair. It will probably result only in a short-term correction and the continuation of the current market trends prevailing in the past week. Despite the fact that the MACD histogram is decreasing and gives the buy signal is still below its central line. And the price is fixed below the Ichimoku Kinko Hyo.

NewForex Analyst
Luigi Campo

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

At the trading session in Asia on Tuesday, USD/JPY continued slowing of growth which has been recorded since the beginning of the week. The efforts of the monetary authorities of Japan, the national currency of this country has reduced the pace of strengthening against the U.S. dollar and the price remains within the levels: support at 110.75 and resistance at 111.68. According to the testimony of the Stochastic oscillator on the daily chart we see that the pair is heavily overbought. This is reflected by the lower volatility in this market and is confirmed by the Bollinger bands in the four-hour timeframe. MACD histogram began to decline and submits a sell signal but still remains in positive zone. For the long term at the moment this market is not yet giving us any prerequisites for changing of the current trend. Exit statistics for the US tonight will not have a significant impact on the current market price.

NewForex Analyst
Luigi Campo

Fundamental analysis from New Forex: The Asia-Pacific region

The expectation that the administration of the new President will adopt expansionary fiscal policy leads to an increase in US shares to record levels. It pushes up inflation and expectations of rising interest rates and bond yields and the dollar. On Monday, US stocks closed at a record high.

Investors can't bother the earthquake in Northern Japan. The Nikkei remained stable and the yen was weakened to the dollar at around five-month lows. If the manufacturers have stopped operations in their factories in the regions investors would react. But now the impact of the earthquake is limited. The overall trading volume was low ahead of the Thanksgiving holiday in the United States and also on expectations of rise in US rates is already factored in by markets.

The main indicators have reached record levels while the post-election activity still holds. Easy weakness of the dollar has boosted gold by 0.3%. In general, the price of gold fell by 10% following the results of elections of the United States. Emerging market currencies recovered some of the losses. The Chinese yuan rebounded from near 8-year lows. The markets are rising, volatility levels recede. CBOE volatility index fell 3.4%. Investors invest in traditional assets.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: Europe

European shares rise today as investors are set to work with traditional assets. The US dollar weakened slightly. The economic activity of this kind may accelerate inflation in some regions. Hopes on the growth of the commodity sectors due to the infrastructure initiatives of the new President attracted investors to cyclical shares these days.

The pan-European Eurofirst 300 rose 0.4 percent on Monday, adding about 0.6% last week. In general, the markets are stable and there are expectations of further fiscal stimulus by the ECB which shows their results with some side.

The single currency strengthened against the Swiss franc and the Japanese yen. The British pound strengthened against most major counterparties. The Swiss franc is trading weaker against most major currencies today. Constitutional referendum in Italy next month could trigger instability in the region and shares of local companies.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

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

After the opening of the European trading session on Wednesday the slowdown in the rate with which the European currency lost in value against the U.S. dollar. Trades today occur in different directions, mostly with a small bearish mood of market participants. Quotes for this currency pair remain in the corridor with the level of support at 1.0586 and resistance at 1.0664. Moving averages EMA20 and EMA55 slowed down significantly. It tells about a marked reduction in the volatility of this market in the long range. In the short term EMA with a period of 3 days crossed down EMA20. Now we can expect a redistribution of market potential between the bulls and the bears for a short period of time. Price remains below the moving average with a period of 55 days. This allows us to expect preservation of the current trend in the long term

NewForex Analyst
Luigi Campo

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

There is a slight slowdown of active growth of this currency pair in the trading today which began on November 7. In the short term since the end of last week the pair is trading without distinct signs of movement in either direction. In a four-hour range and below this price is formed in the area of 1.0100. However, in the long term and according to the testimony of the ADX indicator on the daily chart there are preconditions to expect the further growth of this market. We have already reached the price levels in the current year. Today quotes remain within the current levels of support and resistance at 1.0090 and 1.0160. Stochastic is seen in the overbought zone.

NewForex Analyst
Luigi Campo

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

On Wednesday trading session is mixed. This happens mostly in favor of those market participants who tend today to sell this currency pair. Index of the trend on the daily chart are moderately bearish. The price is kept within the closest levels of support at 1.2335 and resistance at 1.2468. In the four-hour range MACD histogram left the negative zone. However, now the histogram is turned and sends a signal for sale. Stochastic oscillator is close to the oversold zone but has not yet entered it. Its signal to sell appears quite justified. Thus traders adhering to strategies of intraday trading should better give preference to short positions remaining on the bears ’ side.

NewForex Analyst
Luigi Campo

Fundamental analysis from New Forex: Europe

In Europe we can observe a steady growth of basic sectors of the economy, received a strong stimulus from investments, pursuing the prospects for a speedy development of infrastructure projects and the expansionary trade policy of the newly elected President of the United States. In addition, the initiative to stop promoting the TRANS-Pacific partnership can serve as a foundation for the establishment of new global trade partnerships.
Shares of mining and metallurgical companies increased from 3 to 4% earlier on Tuesday. This contributed to the mobilization of global trade activity in the midst of where we are today. The pan-European Eurofirst 300 rose 0.6% on opening. Metals prices are rising in the range of 4-5% in the largest companies and the European oil and gas index rose 0.9% yesterday.
The European currency weakened. This served as support for the regional stock markets. At the same time the British pound weakened even more and dropped to six-month lows. The Swiss Krona strengthened because of the growing interest in non-ferrous metals. The price of this came out of the flat recently and have not fully realized the potential for growth. Today the expected change of the index of business activity in the European region that could serve as a benchmark for growth in the near future.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: The Asia-Pacific region

Stock markets in Asia got a boost today. This is mainly in the form of investment support of investors who managed to earn of American rally earlier. This rally today is limited by the growth of Treasury bonds and the U.S. currency. This significantly affects the competitiveness of goods on the market.
Extensive inter-regional MSCI Asian Pacific ex Japan gained more than 0.57% today, rebounding from the lows of four months. On Wall street stocks closed higher: S&P 500 +0.22%, NASDAQ +0.33 percent, Dow Jones up 0.35%. Australian ASX +1,31% and the Canadian TSX +0,40. In other words the major indices rose today, and now look what is happening with the currency.
The U.S. dollar significantly strengthened against the Japanese yen at the level of 111.09 never breaking above the resistance at 111.35. The Japanese yen is trading weakly but stable supporting the interests of foreign trade situation. It’s just an urgent need, taking into account the fading initiative of the TRANS-Pacific partnership, on which the Japanese business community had huge expectations, but that was a disadvantage of the new American administration.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

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

In yesterday’s trading session the pair broke the support at 1.0586 and thus completed the consolidation in this area(1.0586-1.0664). It continues to move in the descending corridor for the third consecutive week. After the opening of the market in Europe on Thursday, trade flow is multidirectional. Levels of support and resistance determined at 1.0479 and 1.0598. On the four-hour chart according to the readings of the Stochastic oscillator we can see that the pair is oversold and thus there is a sell signal where the %K line below the %D line. MACD histogram remains in the negative zone while continuing to decline gradually and giving a signal to sell.

NewForex Analyst
Luigi Campo

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

The Euro showed mixed trading within the next levels of support at 1.2399, and resistance at 1.2507. According to the index trend, the market sentiment is more in favor of the bears than the bulls. MACD histogram has shrunk from the negative zone almost to parity but yet it is not possible to go into positive territory. So there are no clear signals. Thus the situation in this market can be described as follows. The development of events in favour of the bulls is possible in the case of a price increase above 1.2500 and then 1.2460, afterwards you may open the way to the levels of 1.2600 and 1.2670. favorable development for the bears is the passing level 1.2425 that would open the lower way towards the area of 1.2360 and 1.2300.

NewForex Analyst
Luigi Campo

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

On the trading session on Thursday in Asia and Europe, the pair continues to rise for three consecutive weeks starting from November 4th. Overcoming the last resistance today the pair is trading within the 111.68 support level and resistance 113.84. It should be noted that in the short term it is overbought. This is clearly seen on the example of Stochastic oscillator on four-hour chart. However, this does not interfere with the oscillator to form a signal to buy. We see that the %K line is just above the %D line and MACD Histogram remains in the positive area and is growing quite rapidly. In the medium-term the situation is similar but it has a more intense character. If you look at the daily chart according to Stochastic trading tool is overbought but the %K line is below %D line, only the testimony of the MACD talking about the possibility to buy.

NewForex Analyst
Luigi Campo

Fundamental analysis from New Forex: Europe

European shares are trading mixed on Wednesday, showing signs of stability in some industries. Basic industries and cyclical stocks received significant impetus to growth.
You can see diverse opportunities for major stock indexes throughout Europe including Britain. British FTSE has opened in negative territory with a loss of 0.2% while Germany’s DAX added 0.1% and the French CAC of 0.01%. The Stoxx 600 lost 0.07%, after rising the previous two sessions. The European index of basic industries grew by 1.3% after having reached its highest level since mid-2015 amid rising prices for precious metals.
The single currency lost 0.1 percent against the U.S. dollar, reaching the lowest level in two years earlier. This month the Euro depreciated by almost 4% against the other major trade-weighted currencies. The British pound meanwhile strengthened and presses on the stock market amid heightened interest in risk. Europe still relies on fiscal stimulus, which will help to establish the infrastructure and increase the cost of the shares of basic industries.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: The Asia-Pacific region

Asian stock indexes were affected on Thursday because of the new wave of positive data from the United States to expand the prospects for tightening of monetary policy next month. The yield of the sovereign bonds in the United States significantly increased, breaking multi-year highs.
Equity markets in countries with developing and a developed economy are moving in different directions after the victory of the new President of the United States. The capital flow away from emerging markets to the United States. The MSCI ASIAN-PACIFIC lost 0.41%, due to the shift of investment prospects in the direction of the United States. At the same time, Japan’s Nikkei rose 1.1% secured by the weakened yen. The Australian ASX is up 0.12%, while the TSX in Canada has lost 0.13%.
The yen was trading weak against most major currencies while the dollar rose 0.1 percent against the Japanese currency, strengthening at the level of 112.645, slightly pulling away from early highs. The dollar index against its major rival currencies rose 0.1% and it is close to the level of more than 13-year highs.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

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

On Friday we continue to see the strengthening of the US dollar against other major currencies. This is true against the Swiss franc today. However, this market is experiencing a slowdown with the consolidation at the support level of 1.0160 and resistance 1.0209. As for the future conduct of the dollar today, we will see statistics on business activity Index in the services sector for November. These data define the depth of the correction and the prospect of a further evolution of the course. As for the technical picture in the short term it is possible to emphasize the slowdown in the MACD histogram. Trend ADX tells about the current trends however, with the slowdown in this market.

NewForex Analyst
Luigi Campo

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

On Friday, the pair traded mixed and remained in the narrow limits of the nearest levels of support 1.2424 and resistance 1.2519. Market sentiment is moderately bullish. MACD histogram is almost glued to zero in the four-hour range and on the daily chart and the lack of signal. The Stochastic oscillator tells us about the continuation of the downward motion both in the short and in the long term. Thus it is possible to say that the bears are far from exhausted its potential and continue to put pressure on the market. Here, however, one should take into account the today’s statistical data on UK GDP. This could easily reverse the current trend.

NewForex Analyst
Luigi Campo

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

On Friday, the pair is trading with a slight slowing of the downward trend and we see a price consolidation in the area of support at 1.0519 and resistance at 1.0587 that noticeable compared to the analysis of the previous trading session. However, the pronounced trend remains bearish. This is clearly demonstrated by technical analysis indicators. On the daily chart Stochastic oscillator left the overbought zone. But this does not give a clear signal as the %K line is above the %D line. It may indicate a clear slowing of current trends in the market. However it is still early to speak about full change of trend . For example, the MACD histogram keeps rising into the negative zone with preservation of bearish signal. Finally, contrary to the fundamental principle, you can give here the result of the testimony of the trend indicator ADX. This means maintaining a strong bearish trend in the short term. It would be fair to say in relation to intraday trading.

NewForex Analyst
Luigi Campo

Fundamental analysis from New Forex: The Asia-Pacific region

Asian shares rise in global markets. Dollar retreats shares giving US a chance to resume the climb. The Japanese government announced the strengthening of investment activity in the region of $20.9 billion for the July-September quarter. Strong manufacturing and consumer data from the United States strengthened the arguments in favor of higher interest rates.
The MSCI index showed an increase of 0.3% while the Nikkei rose to the highest levels since January. The index is held on a weekly gain of 2.8% and increased 7.6% since election day in the United States. TSX in Canada, −0.04%, and the ASX in Australia +0.41% today. The rise of return on the bonds contributes to capital flight from emerging markets. The yield on 2-year treasury bonds jumped to 6-1\2-year high of 1.1630. 10-year bonds have hit a 16-month max 2.417% this week and remain near 2.4057 today.
The U.S. dollar rose to eight-month highs against the yen and 0.3% compared to yesterday’s closing level 113.67. Only the dollar rose by 2.5% against the yen this week. It is also expected that Japanese consumer prices fell in October, will get the rebound because of the weaker yen will increase import bills. The dollar index rose 0.5 percent this week and nearly 4% since 8 November.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: Europe

In Europe, markets are rising today because the main areas were mixed with growth in the field of metals and mining companies with significant losses in telecommunications and alternative energy industries.
However, the European stock indices closed on a positive note with growth in the pan-European Eurofirst 300 is 0.3%. Oil prices remain steady as investors await the OPEC meeting next week. In the course of this meeting can be taken to limit the scope of proposals. This will lead to a rise in the stock price.
The single currency fell to its lowest level since March 2015 but rebounded 0.2 percent today to $1.05685. Wall street was closed for Thanksgiving. The Swiss Krone is stable but it was significantly affected by the fact that gold remains under pressure these days, retreating 0.6% to $1.17606 per ounce. This is 2.6% less than last week. The British pound is trading weak and has only strengthened against the Japanese yen. But in Britain, we are waiting for the GDP report which can reflect the health of the market at the moment and clarify investment prospects.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

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

On Monday, this currency pair is trading with a slight bullish attitude within the nearest levels of support 1.0566 and resistance 1.0682. Since the beginning of today’s trading, the pair has grown to about 50 points and is now on track to test resistance area.MACD histogram remains in negative territory after rising above its signal line. This can be interpreted as a buy signal. The stochastic oscillator behaves similarly feeding an identical signal — %K line above the %D line. In order to gain confidence it is better to wait for the breakout of 1.0680 area before entering the market long positions. If this does not happen then we will continue to see a retracement or even a gain with the subsequent continuation of the downward trend in this market. We remind you that today at 17:00 GMT in Brussels, the head of the ECB M. Draghi will address the relevant Committee of the European Parliament. It should be noted that unexpected announcement may trigger increased volatility of this market and the single European currency against major world currencies.

NewForex Analyst
Luigi Campo

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

In trading on Monday, the British currency showed mixed trading against other major currencies. Sterling retains a moderate bullish sentiment of index trend and remains within the next levels of support 1.2440 and resistance 1.2507. On the four-hour chart we can see MACD histogram signals for a long position going into the positive zone and rising up above its own signal line. It can tell us about the upcoming growth of this market in the short term. However, Stochastic is close to overbought and does not generate clear signals. The %K line falls below the %D line. In such a situation, it is recommended to wait for further confirmation before committing to any action, for example, overcoming the current resistance area around 1.2507. This will open the way for the price to 1.26. Otherwise, the market will continue consolidation. It will keep the trend we’ve seen in recent times. In the medium and long term situation of the market will remain without change until the market will be above the 1.2700. This could be the beginning of a good uptrend.

NewForex Analyst
Luigi Campo

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

On Friday the pair in the beginning of the session reached the level 113.89 and then pulled back to 112.55. It closed at 113.05. On Monday trading is mixed but with a clear bearish potential. Now that price is retained within the support 111.85, breaking support at 112.13 and resistance at 113.49. MACD histogram fell to the negative zone and below its signal line. This indicates strong bearish potential of this market. Stochastic oscillator has reached the border of the oversold zone but the %K line is below %D line. This forms a signal for short positions. If the market breaks below 111.59, we can observe a further strengthening of the bearish trends to the area of 110.55. If the price comes back to the area 113.85 and fixate above it, the growth of this market may continue to 120.00.

NewForex Analyst
Luigi Campo

Fundamental analysis from New Forex: Europe

The major European stock indices are trading mixed with negative dynamics in the EU and more positive in Switzerland and the UK. It received a boost due to the lukewarm interest in cyclical shares and assets of the pharmaceutical companies with a growing medium-term prospects for both sectors.
The Euro Stoxx 600 is kept at 0.1% growth, up 1% last week. However, the future performance of officials of the European Central Bank could undermine the prospects of strengthening stimulus on the background of favourable global cyclical impact on regional assets.
The European currency is growing in anticipation of the official ECB President Mario Draghi. Не can give guidance on monetary policy which is expected to remain unchanged in the near future. The Swiss franc and the British pound sterling traded weak by creating an enabling environment for growth stocks.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: The Asia-Pacific region

The US dollar and the yield of U.S. treasuries show signs of weakness as the markets are still hesitant to react to the prospect of new presidential policy. So the trading week starts gently with a dominant activity in the field of traditional asset classes in Europe, USA and Asia.
The MSCI index added 0.57 percent today while the Nikkei in Japan lost 0.14% on the back of a stronger yen. US stocks received a significant boost because of the bearish sentiment against the U.S. dollar adding from 0.34 to 0.39%. The Australian ASX closed with losses of 0.79%.
The US dollar is the obvious leader of the fall today. It is trading weaker than all the major competing currencies led by the Japanese yen. The yen received a boost to growth because of the tendency of investors to hedge financial risks through this instrument. Earlier Friday, the major indexes of Wall street showed a total weekly increase to 17-year highs. Saudi Arabia said on Friday it would not attend talks about OPEC cutting supplies. Therefore, there is concern in relation to the fact that producers fail to agree on the reduction of supply.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

Fundamental analysis from New Forex: Europe

Stock markets in Europe are showing signs of weakness mostly due to the banking sector. It is weakened because of the world’s oldest Bank Monte dei Paschi in Italy, which raises concerns in relation to the entire banking sector of Europe.
The pan-European Euro Stoxx 600 lost 0.8% to 339.83. The index of regional banks closed with losses of 1.8% showing the biggest losses among industries. Oil prices remain weak as investors await the OPEC meeting. While Saudi Arabia announced it will not be able to attend this meeting. Industrial goods are rising amid Chinese demand both in real and speculative value.
EUR is stable and it is trading above the JPY and AUD. GBP and CHF also showing competitive dynamics relative to other currencies. In general there is deepening uncertainty in relation to global trends in the markets today. This is forcing investors to diversify risk through the acquisition of different asset classes. Political risks have kept the Euro stable despite the early rollback of the dollar. The European single currency traded at $1.0606 after failing to reach an 11-day high of $1.0686.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: The Asia-Pacific region

The dollar moves to the strongest two-month gain since the beginning of 2015, underpinned by expectations that the fed will raise interest rates in the coming month. However the greenback weakened against its earlier results because of profit-taking from investors.
Australian stocks rose 0.1% and the Canadian lost 0.4%. The Asia Pacific MSCI Index fell by 0.2%. Industrial metals extended rally, provoking the long-awaited inflationary impulse in the world economy. Futures for iron ore in China rose to the highest level since the beginning of 2014. Zinc touched a nine-year highs before closing at five. Stock markets of Wall street, meanwhile, has been significantly weakened with the losses from 0.28 to 0.56% on the basic indexes.
The yield on two-year Treasury bonds reached the highest level since the beginning of 2010. Dollar moves higher against the yen at the level of 112.18 but profit-taking pulled it down to 111.58. This indicates a 7% growth of the dollar against the yen this month. In commodity markets investors are awaiting the meeting of OPEC. But the absence of Saudi Arabia doubt that the producers will be able to negotiate a reduction in the supply.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

Fundamental analysis from New Forex: The Asia-Pacific region

More than $16 billion flowed from emerging markets within two weeks after elections in the United States although stock market data in India, Indonesia, Thailand and South Korea point to the possibility of slowing the outflow. Today, Asian markets are generally stable although Chinese stocks are undermining the general trend on the background of how the Chinese Central Bank is trying to stimulate economic growth.
The MSCI regional index outside Japan showed an increase of 0.2% while the Nikkei 225 in Japan rose 0.1%. The Australian ASX, Canadian TSX lost 0.3 and 0.1%. Ten-year US treasury bonds rose to 2.42% last Friday. The curve reflecting the gap between the yield on ten-year and two-year bonds exceeded 20 points in the last three weeks.
In FX markets, the rise of the US dollar capped ahead of crucial economic data from the United States. The greenback added 7% against the yen and 3% against the Euro. This comes amid expectations of the increase in budget spending, accelerating inflation and tightening monetary policy in the coming month. However, NewForex analysts tend to assume that further growth of the dollar will be severely limited. The package of crucial economic data from the US could further strengthen confidence in the currency. However, here already the investors can exercise in front of over record levels.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: Europe

European markets rise amid unfolding trends at the regional banks mainly in Italy. And this is due to the significant increase in medical and technology companies in Switzerland. Some of them reached record levels of capitalization these days.
The pan-European Stoxx Europe 600 rose more than 0.3% after the ECB returned the investors ’ confidence that the regulator will be able to support the Italian referendum and to restrict deflation of the currency. Italian banks grew from 3% to 6% on this news. And the world’s oldest Bank Monte dei Paschi rose more than 17% today confident of avoiding the threat of ruin.
The European currency is unstable and may be affected by the intentions of the ECB to increase incentive spending. The Swiss franc and the British pound sterling also hold the Fort against a basket of major currencies. Earlier, the European Central Bank stated that is willing to limit the growth of sovereign debt of Italy at the time of the referendum by purchasing Italian bonds. At the same time, we expect data from the labor market in Germany and a pan-European report on the consumer sentiment and ECB President Draghi. This can guide in the prospects for monetary policy of the regulator.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

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

On Thursday this currency pair trades with small lowering, remaining within support levels at 1.0518 and resistance at 1.0633. It is necessary to notice that slow development of this market which has been observed from last Friday to the middle of the current week stopped. Since Asian trading session and till the present moment we can observe consolidation of the price near the level of 1.0600, that is determined by such term as flat or a sideway. On the four-hour chart, exponential sliding averages with the period of 20 and 55 days were crossed down yesterday and today, they are drifting together. The histogram MACD continues to cling to a zero index, remaining below the signal line that gives a weak hint on the potential of a small bear market in the short-term

NewForex Analyst
Luigi Campo

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

After a small improvement at the end of last and the beginning of the current week this currency pair continues to grow in the long-term prospect.On the day chart, the histogram MACD was a little slowed down, having fallen below the signal line which tells about a small weakening of bull potential of the market, however the Stochastic oscillator gives an accurate signal for purchasing and the %K line is above the %D line. In the short-term prospect, judging by the four-hour chart, it is possible to speak about a small correction in the market which preserves the current trend. The histogram MACD is in a positive zone and remains above the signal line. Stochastics, in its turn, gives an accurate sell signal, taking into account a correctional movement of the market in the short term (the %K line lower than the %D line). Meanwhile, quotations on this currency pair remain within the closest levels of support — 113.24 and resistance — 115.73 with moderately bull indicator of an index trend.

NewForex Analyst
Luigi Campo

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

This market has been growing for two weeks in a row, with a small correction during the yesterday’s trading session.Today, the pair resumed its growth meanwhile it is being traded within the closest levels of support at 0.7025 and resistance at 0.7127 which, as we hope, will be overcomed.On the four-hour chart the oscillator Stochastic left an oversold zone and goes up.The histogram MACD was slightly slowed down, continuing «to win back» yesterday’s correction, however it remains in a positive zone which in total with an accurate signal on purchasing the Stochastics allows to assume preserving of the current trend in the short term. It is also necessary to consider that the price remains above the Ichimoku line which tells about the profit of this market’s bull potential.

NewForex Analyst
Luigi Campo

Fundamental analysis from New Forex: The Asia-Pacific region

The Organization of Petroleum Exporting Countries decided to cut down an offer amounts in the markets once again, even in spite of the fact that Saudi Arabia didn’t participate in negotiations this time. On the other way around, the initiative of Russia to join the decision of OPEC, that pushed oil to 8-% growth came as a surprise for everybody. Meanwhile, official PMI of China grew to 51.7 in November with 51.2 in October, remaining above 50 point mark which separates growth from reducing a monthly basis.
The global energy sector grew up on 0.21%, raw added 0.36% just as the production sector added 0.29%. Cyclic shares are growing up on 0.25%. 30-years treasury bonds of the United States have expanded its profitability up to 14-month in 3.09%, having undermined an interest towards the American shares which thereby are rising in price: only Dow Jones grew up by 0.1% because of the strengthened energy sector just as Nasdaq Composite and S&P lost 1.06% and 0.28%. The Japanese shares added 1.12% because of the weak yen. The Chinese production shows the best results in its progress per month for the last 2 years.
American dollar reached its 9-months maximum peak against yen, which was at the level of 114.830 before returning to 114.060. The Japanese yen is traded poorly, promoting growth of shares of national exporters while the Australian and Canadian dollars stabilized against the majority of principal currencies. Speaking about a dollar, it’s just a matter of time when it will reach the level of 115 yens. Despite of the fact that surplus which was more than 8-% for the last month, the greenback still continues to grow, without any obvious signs for a tendency turn.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: Europe

At the same time, the stock indexes in Europe have groped the potential for the further growth after they closed a surplus per month in more than 0.8%, according to the all-European Eurofirst 300.The yesterday’s meeting of OPEC, as a result of which the next decision on reducing the volume of offers in the markets was made, became one of the main reasons.
Stoxx Europe 600 grew up by 0.7% since the presidential elections in the USA, having broken an early negative tendency and only on several 100-th of percent discording in the correlation with other Pan-European Eurofirst 300 index. Yesterday, Stoxx 600 added 0.3%. The oil and gas index of Europe grew up to it’s three-months maximum peak in 3.4%.
The potential of European currencies growing remains muffled because of the growing dollar and long-term treasury bonds of the USA, which keep them under the spotlight of investors. However, the common currency is stable but for Swiss franc and the British pound of sterling trade below the majority of the principal competing currencies for today. Though for euro there are additional concerns against the background of the future Italian referendum. In case of referendum’s failure, the European Central Bank promises to intensify purchases of the Italian bonds, that will bring common currency into the descending trend.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

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

On Friday this currency pair trades with a moderate bull sentiment, remaining within support levels at 1.0622 and resistance at 1.0702. In the short term if to look at the four-hour chart of dynamics of the market, which was observed during the last trading session, currencies rate continues to grow even today. Yesterday, the pair drafted off a strong support at the level of 1.0550 and today it has updated it’s local maximum up to 1.0689 and in such a manner made these values of lower and upper limit the borders of the ascending channel.The histogram MACD began its growth in positive area and now it is above the signal line that speaks about a good bull potential of this market.Stochastics is in an overbought zone right now, but it keeps a signal for purchasing — the %K line higher than the %D line.Good fundamental data gave support to single European currency which got stronger on 75 points against US dollar yesterday.As for the forecast for today, the main participants of the market reduced it’s activity on Friday waiting for the publication of statistics on the USA at 16:30 MSK.

NewForex Analyst
Luigi Campo

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

Dynamics of the market’s currency rate was characterized by sharply expressed bull trend for the last month.In December the ascending tendency remains intact.The trades on this currency pair on Friday proceed with a moderate benefit of bulls within support level at 143.11 and resistance at 145.67. On the four-hour chart the histogram MACD descends, remaining in a positive zone but falling below the signal line.Thus, we can expect a small correction of this market before the ascending movement will resume.Moving averages with the period of 20 and 55 days continue to grow steadily and that fact confirms serious bull’s potential.

NewForex Analyst
Luigi Campo


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

On Thursday, concerning a short-term prospect, the pair closed its trading session below the strong level of support in the field of 1.3400 that opens a way for further bear evolution of a rate to 1.3200. At the trades on Friday, bearish dynamics of the market and the price remains within the closest levels of support at 1.3240 and resistance at 1.3379. However, there is no necessity to speak about a pronounced trend, ADX remains slightly higher than a mark in 20 points, therefore the current trend only gains strength.

NewForex Analyst
Luigi Campo

Fundamental analysis from New Forex: The Asia-Pacific region

For today, Asian shares have developed and they are falling against the background of global losses in the stock markets while profitability of the American bonds has decreased. South Korean shares dropped by 0.7%, having expanded weekly losses up to 0.25% after opposition parties declared that they will continue offensive movements on Friday. Their policy is to exclude Park Geun-hye from the president’s position after the scandal on trade influence, for the purpose of carrying out voting on her impeachment on December 9.
Regional MSCI decreased by 0.6%. Earlier, Nikkei reached its 11-month peak, but for today it is departed for 0.6%. The Chinese CSI 300 decreased by 0.5%, and 0.3% in a week. Today, Hang Seng in Hong Kong loses 0.9% and 0.2 within a week. Profitability of 10-year American bonds was removed to 2.439% after it was about 2.492% on Thursday — the highest rate since June, 2015.Wall Street head out with multidirectional trade: Dow Jones grew up by 0.36%, but Nasdaq and S&P 500 relevantly weaken at 1:36 and 0.36%.
Today, the American dollar subsided for 0.3% against yen, just like yesterday. In common it has reached its 10-month maxima. The Australian and Canadian dollars are also in their defensive position. Investors are examine an employment in nonagricultural sector — the interim report for November will be published today, but a bit later, trying to discover some additional arguments for benefit of improvement of the economy after construction sector’s data has showed increase in construction expenses up to 7-month maxima in October.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: Europe

Subsequent to the results of referendum the Italian stock market remains the weakest in Europe this year, having lost more than 20% because of the problems in the national banking sector and concerns about political instability. Surveys reveal that public opinion is against the offered reforms, however some media sources emphasize that the gap was considerably reduced (from 5-7% up to 3-5%) over recent days. Also it should be taken into account that many respondents refrained from participation in surveys.
The bank index of Italy which has lost more than a half of the cost this year grew up by 2.6% this week, gaining support of stabilization from the European Central Bank. The all-European Stoxx Euro 600 dropped by 0.3% while the blue chip index of Milan grew up by 1% and had shown its highest intraday level since November 10.
The single currency gained ground this week, remaining on its way to a 1-% surplus. But it can weaken considerably because of the expenses on support of the Italian bonds in case of a negative outcome of the referendum in Italy. The Swiss franc strengthens its position, acting as attractive means for hedging of financial risks these days, and the British pound sterling grows against the background of the latest problems of the European Union convincing investors of viability of a brexit initiative.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

Fundamental analysis from New Forex: Europe

The European currency fell to the minimums of May 2014 after investors left to hedge through risk asset classes, leaving the European shares without necessary attention, against the background of the condensed problems in the financial sector of Italy and other provincial markets of Europe.
The real sector weakens from low investment activity. Profitability of the Italian bonds grows while treasury bonds in the USA and Germany are rising in price, attracting hedgers with the relative safety.The European Central Bank has already managed to take reprisals, previously having reported about intention to expand the stimulating program in case of a referendum failure.This fact helped to weaken consequences of the Italian events. It is worth expecting that this week we will see a take-off of some key sections of economy, but most likely the financial sector will remain under pressure.
The European currency lost 1.4% against competitors. It is not so disastrously as it was with pound sterling after the Brexit events, but if to take into account recent crisis in Greece and strengthening of the stimulating policy of the European Central Bank, then it is possible to consider borders of the further fall up to $0.8000. The Swiss franc also uses interest on hedgers, taking highly competitive dynamics against other currencies. We can observe the same thing with the British pound which receives impulses for growing from each news confirming benefits from an early Brexit-referendum.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: The Asia-Pacific region

For the day, shares show negative dynamics worldwide as the constitutional referendum lost 60% of voters in Italy, after they have voted against an initiative of reforms. The prime minister Rentsi promised to retire. Investors are hedged through risk assets, mainly through US dollar.
In the region, disregarding Japan, the MSCI index showed easing at 0.4%. According to the Nikkei index the Japanese shares lost 0.9%. The stock indexes of Wall Street reflect the mixed dynamics: S&P 500 loses 0.1%, and Nasdaq and Dow grow at 0.09 and 0.04%. Even energization of the cross biddings between Shenzhen and Hong Kong doesn’t save the situation in the stock markets. However this change doesn’t remain unnoticed and will bear fruit in the long term.
The greenback got the upper hand because of the hedgers and gained ground bull prospects of the Central Banks, which is ready to push an interest rates up this month. Yen is in protective position. The Canadian and the Australian dollar stay clear as these regions were less vulnerable for referendum consequences. Today we wait for the report on activity in a service sector of the USA which can clear prospects of the American economy more distinctly and in particular, policy of U.S. Fed.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

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

During the last trading session, the market considerably grew against the background of data on Purchasing Managers’ Index in the eurozone according to Markit and in anticipation of the decision of GB’s Supreme Court on appealing of the government concerning the Brexit procedure. In addition, the contribution in yesterday’s volatility was brought by Spain where business activity in a service sector appeared to be at the level of forecasts and Italy with its results of the referendum. On Tuesday’s biddings quotations have stabilized and the pair is traded within the closest levels of support at 1.0635 and resistance at 1.0925. Looking at the four-hour chart of technical analysis we can come to a conclusion that the market’s spirit is moderately bull, the histogram MACD began to grow slowly having risen above the signal line, remains in a positive zone. The oscillator Stochastic shows an overbought of the trade instrument.

NewForex Analyst
Luigi Campo

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

Judging by technical analysis at the four-hour chart the prominent up trend remains unaffected at current biddings, keeping its price applicable to its maxima per two last months.The market remains above moving averages with the period of 20 and 55 days which indicates the remaining bull moods of the markets’ participants. The histogram MACD continues to grow in a positive zone and today it has reached the level of its signal line, but doesn’t give an accurate signal yet. Stochastics entered an overbought zone that can presage a small correction of the market in the short term, but still it gives a strong signal on purchase, — the %K line rose above the %D line. However for adoption of investment solutions, one signal is not enough.It is necessary to wait until the price will gain its domain above a local maximum 1.2750 and will be fixed there.

NewForex Analyst
Luigi Campo

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

On Tuesday's biddings there is a small improvement of the up trend, which has been observed during the last month and today the price is consolidated in limits of support levels at 113.32 and resistance at 115.23.On the daily chart the histogram MACD remains in a positive zone, but decreases having fallen below the signal line which indicates the reduction of bull market potential and confirms the current improvement.Stochastic left an overbought zone and gives an accurate signal for sale - the %K line fell below the %D line.

NewForex Analyst
Luigi Campo

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

On Tuesday the pair continues the trades with reduction of price just like during the previous trading session where the Swiss franc shored up its position against the greenback at 83 tick and general volatility of intraday trade amounted up to 127 tick, which is quite peculiar for this market. Today the price remains within support level at 0.9992 and resistance level at 1.0127. The market spirit moderately bear, four-hour chart fell below moving averages with the period of 20 and 55 days. The histogram MACD appeared in a negative zone and continues to decrease, having fallen below the signal line, which indicates a reduction of the bull market potential and strengthening of bear tendencies.ADX shows weakening of the marked trend tendencies.

NewForex Analyst
Luigi Campo

Fundamental analysis from New Forex: The Asia-Pacific region

For the day, the regional markets grow indicating the largest increase within the last two weeks.These days, euro was stabilized against the Italian political crisis background of revaluation of scales of the negative consequences which were resoundingly smoothed by the stimulating policy of the European Central Bank.
Region-wide MSCI extended for 0.8%, having established the largest surplus for the last two weeks. Nikkei also added 0.8%. The stock indexes of Wall Street show positive dynamics: Dow grew up by 0.25%, and corresponding to it S&P and Nasdaq grew up by 0.6 and 1.0%. It is worth emphasizing that global investment activity was weak today and was observed mainly in the sectors which are traditionally considered to be the hedging means of financial risks.
The US dollar almost didn’t change towards main competitors and remains at the level of 100.16, near a Monday’s minimum in 99.849 — the lowest level since November 15. At the end of November the dollar’s index reached its summer peak in 102.05, having received a boost on expectations of the growing budgeted expenses and strengthenings of bull monetary moods in U.S. Fed. The yen was stabilized against US dollar at the level of 113.79.The Australian dollar lost 0.2% because RBA kept its policy without any changes. At the markets investment moods are up-and-coming, which is explained by the growing uncertainty concerning prospects of the European economy.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: Europe

The European currency was stabilized, but it is traded near its minimum of September 2015, after the referendum which was organized by the prime minister of Italy — Matteo Renzi spectacularly failed. The referendum was the reason of plucked hopes for the constitutional reforms and moreover it exacerbated the issue of the banking sector. The prime minister intends to resign.
Euro has weakened against dollar for 0.1% to the level of 1.0757, gaining 1% yesterday and leaping aside an early minimum of 1.0505. The British pound sterling grows, having secured profitable investment moods from a failure of the Italian referendum that can indirectly testify viability of a Brexit initiative.The Swiss franc grows, attracting hedgers as an asylum of security from financial risks.
Potential stakes of euro calamity were noticeably limited by incentives from the European Central Bank who can expand a procurement program of bonds this Thursday and continue the program for six or more months. Both eurosceptics clear-cut ascendancy and positive data from a post-Brexit GB market undermines the investors belief in prospects of the EU.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

Fundamental analysis from New Forex: The Asia-Pacific region

The markets of the Asia-Pacific region received a boost for growing against the background of investors aggressive interest in real sector worldwide. After the rally for US dollar slowed down, officials of the European Central Bank are preparing for a meeting, for the purpose of programs prolongation of quantitative easing which is expected for half a year. At the same time it is unknown whether the purchasing amounts of bonds will be extended or not.
The global index MSCI which reflects cumulative data on dynamics of the world stock markets increased by 3.4%, having bounced off its November minima. Regional MSCI added 0.25%. The Japanese shares grew up by 0.4%. In Canada and Australia the growth respectively constituted 0.2 and 0.9%.
The American dollar index decreased by 1.5% against other principal currencies for the last two weeks. The greenback is traded at the level of 114.11 against JPY having developed from 9-1/2-month maxima in 114.83 yens which were reached earlier last week. The Australian dollar lost half-cent against the background of GDP weak data. The Canadian dollar is stable and keeps above the majority of competitors, waiting for the Bank of Canada to leave its interest rates without any changes later on today.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: Europe

After the European Central Bank developed its stimulating policy in relation to the Italian banks which added nearly 10%, the European shares resumed their growth, considerably gained an annual maxima in the banking sector.
However, it is worth understanding that measures of the European Central Bank have the constraining character and 10-% growth closed only a small part of losses which cost more than a half of capitalizations amount of all Italian banking sector this year. But also it is worth noting that these measures were very effective, and the treasury promised to consider a question of share increase in the largest Italian and the oldest world bank Monte dei Paschi in the near future.
Euro gained positions and it is traded above 20-month minima at the level of 1.0717 against the American dollar,the cause of which was the failure of the Italian referendum. The British pound is significantly limited in growth because of uncertainty concerning data production, which will be published later on today. Meanwhile the Swiss franc pointed firmer at the leader’s line against other competitors, being a key hedging instrument for today.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: The Asia-Pacific region

The stock markets keep growing. The interest towards the real sector doesn’t weaken and Asian shares trade above its monthly maximum. Meanwhile the American shares are setting their fresh quarter records. The European shares are in requisition of investors due to the active stimulating support of the European Central Bank whose senior management will meet later to come to a number of decisions on monetary policy and to plan prospects into next year.
The resource-oriented Australian market grew up by 1.2% exactly by as many as the region out of Japan while Nikkei grew up by 0.8%. The Wall Street grows: the Dow index is +1.55%, S&P is +1.32%, and Nasdaq is +1,14% expecting fresh financial incentives and strengthening of deregulations policy from Trump’s administration.
The greenback weakened against yen which got stronger against all main competitors. The Australian and Canadian dollars took defensive positions, promoting growth of real sector and the export-oriented companies in particular. Profitability of 30-year treasury bonds dropped by 6 basis points earlier on Wednesday, showing the greatest daily recession since August and maintaining interest towards traditional assets.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: Europe

The European stock indexes grow, attracting investors from around the world according to cheap bank stocks and sought-after dividend prospects. The banking sector grew up to its January maxima, against the background of the extensive incentives and Credit Suisse’s reduced expenses.
EU-wide Stoxx 600 rose up by 0,9% — to its maxima of September while its bank section extended for 2.3%, with top performer Credit Suisse which added 7.4% against the reductions expenses background of more than 1 billion Swiss francs and the growing prospects for further reducing.
The European currency is stable. Recently, some analysts put forward an assumptions that between the prospects of extension of the European Central Bank stimulating program and the prospects of narrowing the parity appeared a parity of stocks as the European stock indexes show unpredictable potential for recovering. At the same time, the British pound sterling trades above most of competitors, having received the impetus from positive data on the national GDP which justified forecasts in 0.4% growth. Later today, don’t miss a meeting of the European Central Bank senior management in order to get reference points on monetary policy for the future 2017 financial year.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

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

All index numbers that the single European currency accumulated since the 5th of December within the current week, went to nought yesterday, through the efforts of the European Central Bank during M. Draghi’s performance. He reported that the foundations of monetary policy will remain flat till March of the next year but also declared reducing program of quantitative easing up to 60 billion euros per month. It significantly pressed single European currency which entailed sterling. As for a technical analysis for today, the eurodollar is traded within support level at 1.0588 and resistance at 1.0675. On the four-hour chart the MACD histogram fell to a negative zone, the Stochastic oscillator goes up, remaining in an overbought zone. Both of them don’t give an accurate signals yet.

NewForex Analyst
Luigi Campo

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

On Friday, this currency pair keeps remaining under pressure and is traded within support level at 1.2479 and resistance at 1.2676. Further development of the bear scenario requires fixing of the price lower than the level of support. In spite of the fact that the current trading signal received confirmation remaining weak, the Chikou Span is below a price chart whereas the price is in Ichimoku cloud. While overcoming the current support, the descending trend will be able to prolong to the corner of 1.2400 until the price remains below Kijun-sen. If the market comes out above this line, the trading signal will become weaker with cancellation of the descending movement. By the way, it is quite possible if to pay attention to Stochastic which gives a clear trading signal, having left the oversold zone with the %К line crossing the %D line bottom-upwards.

NewForex Analyst
Luigi Campo

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

Since the beginning of the current month we can observe an explicit trend in this market. At the trades on Friday the price is in trading range, remaining within support levels at 113.45 and resistance at 114.55. During the Asian trading session the pair grew inertly and by the time of Europe trades development, tests the current level of support. On the four-hour chat the MACD histogram strongly slowed down and doesn’t show any trading signals, Stochastic is in an overbought zone with a small hints on signal’s origin.

NewForex Analyst
Luigi Campo

Fundamental analysis from New Forex: The Asia-Pacific region

The Asian markets show flagging signs against the background of the ECB bearish monetary policy which delayed interest of investors in the cheap European stocks promising long growth at the expense of the regulators expanded stimulating programme. Earlier the ECB announced that monthly purchases will be reduced, but up to the end of the next year the terms will be extended.
The Regional MSCI independently of Japan’s market dropped by 0.3% just as Japanese shares grow, having received the impetus from the weakened yen at 1.3%. The USA’s stock indexes grew at 0:22, 0.33 and 0.44% up to the record of its historical maxima. Forecasts for FED’s rate increase next month: probability for increasing in 25 basis points is 98% and probability that the stakes will be raised at least once by June, 2017 is 50%.
The US dollar added 0.4%, getting stronger at the level of the February maxima which were reached earlier last week, whereas the Japanese yen trades below all key currencies competing among themselves. The Australian and the Canadian dollar are stable and trade above the European and Asian colleagues. The index of US dollar grew up by 0.4% on a weekly basis.From the future events it is worth to point out committee meeting on the open markets of U.S. Fed next week. This is the most important event of these days during which as it is expected the interest rate will be raised.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: Europe

The ECB disoriented its investors, having promised to reduce amounts of bonds monthly purchase by 20 billion euros. It was regarded as bullish news before the markets rethought it in a bearish one against the background of the dominating prospect of terms prolongation of the stimulating program up to the end of 2017.
As a result profitability of the European bonds grew, bank shares grew, euro at first grew, and then fell. Presently the European bank index has extended for 2.2%, showing the best week results since 2011 while the Italian banks added 3.5%, having stabilized at the level of five-months maxima.The pan-European Stoxx 600 rose by 1.2%.
The European currency approached to 0.1% growth before falling against other competing currencies after the markets evaluated prospects of monetary policy of the ECB towards bear. The British pound and Swiss franc trade above yen and euro in a way that facilitates the growing interest in bank shares and the positive economic data from the Great Britain which convinced investors of the post-brexit markets growing potential.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

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

On Monday the trades on this currency pair proceed in different directions. On the four-hour chart the market is characterized by a small bearish spirit of an index trend. At the opening of the European trading session the price remains within support level at 1.0554 and the level of resistance at 1.0649. The MACD histogram is in a negative zone, slowly reducing. Stochastic reports on this trade instrument oversold tendency with indistinct purchase signal. We shouldn’t rely on it because it can be false. EMA20 and EMA55 moving averages crossed which indicates the strengthening of bearish market potential. Strong bearish tendencies prevail on the day chart which is confirmed by MACD and Stochastic indicators. In such a manner we see that this market possesses serious bearish potential and is kept under pressure.

NewForex Analyst
Luigi Campo

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

On Monday this currency pair is traded with a small advance in price, remaining within support at 1.2569 and resistance at 1.2599. From the moment of trades, opening the initiative in the market belongs to bulls who are firmly aimed to overcome the current resistance. On the four-hour chart the MACD histogram is located in a negative zone, without giving strong signals, however Stochastic is in a neutral zone but with the %K line above the %D line which indicates the bull scenarios development in the short term. Nevertheless, in the long term the bearish spirit prevails in the market. On the week chart the price is below EMA20 and EMA55 moving averages, but for further down movement it is necessary to overcome a strong support in the corner of 1.2460/70.

NewForex Analyst
Luigi Campo

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

On Monday strengthening of the greenback against Swiss franc continues. The trades proceed with a small increase in a rate to the level of resistance at 1.0183 and with the next support at 1.0151. As for strongest level of support at 1.0073 and resistance at 1.0200. The technical analysis on the four-hour chart speak well for the ascending trend and strengthening of bullish potential, the market fixed above the Ichimoky indicator and the MACD histogram began to grow. In the long term, according to the day chart where the market steadily remains above the Ichimoky indicator the ascending tendencies continue to amplify steadily and in case of overcoming corner of resistance at 1.0200 we can return to an annual maximum at 1.0255.

NewForex Analyst
Luigi Campo

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

On Friday’s trades the greenback became more entrenched against the JPY. Today’s trading in Asia and Europe didn’t become an exception. After a week «slack» it seems that the ascending trend returned in the market. On Monday, the trades are characterized by clear advantage of bullish moods in the long term, as for now pair remains within support at 114.59 and resistance at 116.03. For today, the technical analysis develops in a certain way. On the day chart the Stochastic oscillator, remaining in an overbought zone gives a strong signal for an entrance to the market with long positions. The %K line is located above the %D line and keeps growing. The MACD histogram is in a positive zone, still grows, however it gave us not absolutely obvious signal for purchasing. In the short term display numbers are in kind. Stochastic, being in an overbought zone hints at fast emergence of a signal for sale whereas the MACD histogram on the sly of bulls. Thus, we expect continuation of the ascending trend in the long term along with considerable bullish potential within inside day trade.

NewForex Analyst
Luigi Campo
Fundamental analysis from New Forex: The Asia-Pacific region

In the last quarter the production orders fell in Japan but managed to be recovered providing moderate interest in the national stock market. The Chinese Public information service declared that indicators markets growing exceeded its target at 6.7% and officials are going to review forecasts for 2017 towards further growth. Earlier MSCI World grew up by 0.41%, but lost about 0.1% in the markets of the Pacific Rim today. Nikkei expanded at 1.23%, and Wall Street stock indexes added 0.5, 0.6 and 0.7% consequently. The Australian ASX slightly grew up by 0.04% and the Canadian TSX added 0.11%. Fall of a regional index was promoted by China, where problems of reducing production activity and the market offer play a key role, in connection with in excess of a plan growth testifies overheating of the economy and debts growth. The greenback slightly weakened today. This week the meeting of officials of the Federal Reserve System is expected. As a result of this meeting the rates can raise up to 0:25 pips. Today the Canadian dollar received a considerable impetus for growing because oil prices increased to 4%, to the highest levels since 2015 against the background of the first OPEC and Russia transaction at the end of the last week. The JPY is in the lead of falling, supporting the export-oriented companies.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: Europe

The stock markets of Europe continue to grow near its annual maxima against the background of modified, but still bearish monetary policy of the European Central Bank. The bank reduced amounts of monthly purchased bonds due to prolongation of the quantitative mitigation program. In spite of the fact that Stoxx 600 opened with insignificant lowering, cheap bank stocks have already managed to return the all-European index to the ascending flow. Last week the index grew up by 4.7%, having overcome its maxima of January continuing to grow. The European currency is under pressure on behalf of the European Central Bank. The Swiss franc nearly joined ranks of fall leaders, being stabilized at the level of 1.0186 against the greenback. These days it is difficult to foresee the period of growth of the bank shares supporting the European market. But, if to look to the prices of the Italian assets, then it is possible to say that they approached the values abolishing negative consequences of a recent constitutional referendum safely failure.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

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

On Tuesday couple is traded with a moderate bearish spirit, remaining within the current levels of support at 1.0094 and resistance at 1.0171. The technical analysis indicates the uncertainty which developed in the market, thus it is necessary to expect correctional price consolidation as a result of which force of opposing parties will be revealed. On the four-hour schedule the Stochastic oscillator leaves an oversold zone giving a strong signal on purchase, the %K line crosses the %D line from the bottom upwards which indicates development of the market ascending movement. MACD is located in a positive zone, however decreases which indicates small strengthening of bearish potential that can develop into short correctional movement of the price. The chart still remains above the Ichimoku indicator, therefore it is worth expecting further growth of this market towards 1.0200 and perhaps further.

NewForex Analyst
Luigi Campo

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

From the second half of last trading session the sterling began to strengthen against the greenback having risen from 1.2578 to the mark of 1.2699. Then it digressed to the corner of 1.2660 during the Asian session. For today, by the beginning of trades in Europe the pair keeps the ascending potential and is traded within support levels at 1.2585 and resistance at 1.2695. On the four-hour chart we can observe the following situation: the price is fixed above the Ichimoku indicator which confirms bullish market potential. For continuation of the ascending trend the price is to consolidate above resistance in the corner 1.2695-1.2700, then we will be able to see its movement to 1.2775 (the peak of last week). For development of the bearish scenario it is required to overcome the current level of resistance and to be fixed lower than 1.2548 (the minimum of last week).

NewForex Analyst
Luigi Campo

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

On Tuesday, the pair is being traded with a small advance in price during the Asian trading session with support level at 1.0554 and the level of resistance at 1.0648. The technical analysis of this market speaks well for development of the bearish scenario in the short term. On the four-hour chart Stochastic gives a strong signal for sale. The %K line crosses the %D line from top downward as they leave an overbought zone. MACD began to grow slightly, but continues to remain in a negative zone which indicates insignificant strengthening of bullish tendencies which developed into the short-term ascending movement of the market by the beginning of the present trading session. Moving averages function with 20 and 55 were slowed down, crossed from top downward and continue to decrease confirming bearish market potential.

NewForex Analyst
Luigi Campo

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

Today the continuation of the ascending trend on this currency pair is observed. Since 4.11.2016 the greenback steadily becomes stronger against the Japanese yen with small correctional movements on two trading sessions and then the ascending trend returns to the market again. In the short term the closest levels of support and resistance are around marks of 114.59 and 115.80 per today. It is necessary to underline that this market still has serious bullish potential, the price was fixed above the Ichimoku indicator and steadily remains in the ascending channel. The Stochastic oscillator gives a signal on purchase, MACD was a little slowed down, but remains in a positive zone. Let’s remind that today begins a two-day committee meeting on the USA public market, therefore all participants of the market reduce the activity expecting results of a meeting which publication is planned for tomorrow 22:00 Moscow time.

NewForex Analyst
Luigi Campo
Fundamental analysis from New Forex: The Asia-Pacific region

The markets grow pending the meeting of Committee officials on credit policy of U.S. Fed. Many investors are hedged, fix profit, predicting what reference points will pledge the Central bank in the relation to further measures of regulation. Profitability of treasury bonds jumped up on inflation growth expectations. The index of real sector in the region grew up by 0.11% while the stock index of MSCI weakened at 0.12%, keeping rates of a monthly surplus for 1.73%. In Japan Nikkei added 0.22% because of the fact that the weak yen provides big competitiveness for export. The USA treasury bonds reached their annual maxima and are traded at the level of 2.465%. The greenback grew up to its 10-month maxima against yen which is in on the back foot. The Canadian and Australian dollars already managed to depart from recent commodity rally and now they are in low demand among investors each of hedging instruments and attractive risk assets.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: Europe

The European banking sector continues to enjoy popularity but now it is quite noticeable that it’s more limited because of the wakened interest of investors to risk asset classes. However, hedging risks against the background of events around U.S. Fed interest rates are also enough these days. The European MSCI index grew up by 3.2% since November 15 and opened with 0.15% growth. The British economists reviewed forecasts for market growth for the future year. Today it will become known whether forecasts for a consumer price index of Britain will come true. The European currency continues to face pressure of bearish policy of the European Central Bank, but trades above the Australian dollar and the Japanese yen. At the same time the British pound and Swiss franc trade above the majority of currencies because of the divided interests of investors towards the risk and hedging tools.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

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

On Wednesday it is expected the release of the important economic data and other calendar news on US dollar which are strongly influencing volatility of the foreign exchange market.
16:30 Moscow time — PPI Output for November;
16:30 Moscow time — Volume of retail sales for November;
18:30 Moscow time — change of formation oil volume and oil products;
22:00 Moscow time — The decision on FRS interest rate which FOMC press conference will follow.
While waiting for these news, the situation in the market is rather quiet and investors don’t risk to come over to bulls or bears side. Therefore in the short term the technical analysis didn’t have definite scenario. On the four-hour chart MACD remains in a negative zone, but today it poorly grows while Stochastic is in the neutral plane and doesn’t give a strong signal.

NewForex Analyst
Luigi Campo

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

On Wednesday it is expected the release of the important economic data and other calendar news on US dollar which are strongly influencing volatility of the foreign exchange market.
15:00 Moscow time — speechification of Mark Carney(the governor of the Bank of England);
16:30 Moscow time — PPI Output for November;
16:30 Moscow time — Volume of retail sales for November;
18:30 Moscow time — change of formation oil volume and oil products;
22:00 Moscow time — The decision on FRS interest rate which FOMC press conference will follow.
On Wednesday, sterling is traded with small reduction in price within support levels at 1.2615 and resistance a 1.2695. In the corner of 1.2722 lies stronger resistance. The descending correction stagnates around a mark of 1.2640. On the four-hour chart the MACD indicator remains in a positive zone and decreases. The Stochastic oscillator is located at the output of an oversold zone, at the same time creating a signal on purchase, the %K line crosses the %D line from the bottom upwards, being in a boundary of the area that promotes strengthening of a signal.

NewForex Analyst
Luigi Campo

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

On Wednesday it is expected the release of the important economic data and other calendar news on US dollar which are strongly influencing volatility of the foreign exchange market.
16:30 Moscow time — PPI Output for November;
16:30 Moscow time — Volume of retail sales for November;
18:30 Moscow time — change of formation oil volume and oil products;
22:00 Moscow time — The decision on FRS interest rate which FOMC press conference will follow.
Since 21.11.2016 the Australian dollar continues to strengthen against the greenback but strong resistance in the corner of 0.7500 is not surmounted albeit several desperate attempts. On Wednesday the trades proceed with a small bullish spirit of the market and today the Australian dollar already tested the level which was mentioned above. The technical analysis of a four-hour time frame looks as if the price is clamped in a triangle that implies a fast exit from it. There is one question left. Is it going up or down? All participants of the market hope that FRS today’s meeting and FOMC press conference will provide the answer

NewForex Analyst
Luigi Campo

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

On Wednesday it is expected the release of the important economic data and other calendar news on US dollar which are strongly influencing volatility of the foreign exchange market.
16:30 Moscow time — PPI Output for November;
16:30 Moscow time — Volume of retail sales for November;
18:30 Moscow time — change of formation oil volume and oil products;
22:00 Moscow time — The decision on FRS interest rate which FOMC press conference will follow.
For about a month it is observed the descending movement on currency pair USD/CAD and this week was reached the next round boundary 1.3100. However this level of support wasn’t passed with a late market slightly above. On Wednesday, the rades proceed within the current support at 1.3100 and resistance at 1.3141. On the four-hour chart moving averages continue to decrease but they were slightly slowed down while MACD remains in a negative zone, and according to ADX trend indicator the descending tendency movement of this market is expressed rather well, the considerable excess of DI + over DI.

NewForex Analyst
Luigi Campo

Fundamental analysis from New Forex: Europe

Recently the growth of bank shares pushes the European markets up. Today we can observe an active growth of the Italian bank shares in particular such as UniCredit, relying on the help of the new prime minister Gentiloni promising to take supportive measures towards perspective sector of the country.

Last week the Italian banks managed to show united growth, because of short positions on salvation of Monte dei Paschi bank under the auspices of the European Central Bank. The all-European FTSE Eurofirst 300 grew up by 1.01%, and the European stock indexes are traded in the range of 0.8-1.0%.

The European currency makes up for the losses which were received earlier from unexpected policy changes of the European Central Bank connected with terms and amounts of monthly purchases. Meanwhile, the British pound is traded less surely because of weak forecasts for the labor market and unemployment. As per usual, Swiss franc is stable in the conditions of high financial risks providing good support to hedgers.

NewForex Analyst
Alex Vergunov

Fundamental analysis from New Forex: The Asia-Pacific region

The markets were slowed down waiting for a meeting of U.S. Fed officials which will begin today at 19:00 GMT. At the meeting, number of important decisions on credit policy will be adopted. Moreover reference points will be pledged for the future year. For many traders there is a chance to earn these days and many just abstain from market risks in the period of abnormal volatility.

The region MSCI index added 0.1%. Shares of the American companies are in quite good demand: Dow Jones grew up by 0.58%, Nasdaq and S&P 500 increased by 0.95% and 0.65%. The Australian ASX added 0.71% while TSX in Canada grew up by 0.65%, the Chinese CSI 300 lost 0.31% because of problems with an overheat of the productive activity annoying the market during the last quarter.

The US dollar is traded at the level of 115.20 against the Japanese yen and it is slightly lower than early February maxima 116.12 while the index of the American dollar was stabilized at the level of 101.05. Traders fix their profit and abstain from trade and lots of them prefer to hedge through traditional and cyclic asset classes these days. The Canadian dollar is traded valiantly against main competitors while the Australian dollar went to defensive position.

NewForex Analyst
Alex Vergunov

 

[Anna Mon]

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

Yesterday, after long promises and expectations, FRS raised an interest rate at last which strengthened index positions of the greenback in relation to all world currencies. Today the trades proceed with insignificant, further rate decline and the price remains within the level of support at 1.0462 (minimum March, 2015) and resistance at 1.0611. The technical analysis of this currency pair differs in bearish prospect. MACD is in a negative zone and it gives a strong signal for sale. The Stochastic oscillator approached an oversold zone with the same bearish signal, the %K line is lower than the %D line. Thus, continuation of the descending movement of this market and strengthening of the greenback against single European currency is expected.

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

On Wednesday, the increase of an interest rate after the last two-day committee meeting for monetary policy of the USA gave serious support to the greenback. Having added more than 100 points, quotations on this currency pair exceeded its January maximum of the current year (1.0255), overcoming strong and psychological resistance at 1.0200 and on Thursday also with resistance 1.0274 are traded within support at 1.0156. The technical analysis on the four-hour chart has the obvious bullish direction. The MACD histogram is in a positive zone, it grows and has an entrance to the market with long positions, giving a signal on purchase. The Stochastic oscillator is in an oversold zone and gives a strong signal on purchase — the %K line is higher than the %D line and both are directed up.

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

Steady growth of this market is observed for the current week, as well as during several last. Increasing of FRS interest rate added an additional impetus to already strong bullish tendencies in the market. Thus the intraday growth exceeded at 200 pips at closing of yesterday’s trading session at the level of 117.15 poured out in couple exit from the channel up. On Thursday, the greenback continues to become stronger against the Japanese yen and during the trades in Asia a repeated exit abroad of the ascending channel was fixed up. After start of trading in Europe the growth of quotations continued. Technical picture potentially is bullish. On the four-hour chart MACD is located above the zero line and grows, giving a signal for sale. The Stochastic oscillator — in an overbought zone, however the %K line is higher than the %D line that assumes the further growth of the market.

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

Yesterday’s monetary U.S. authorities increase of an interest rate gave a serious impetus to the greenback which considerably consolidated against the principal world currencies. As a result Sterling handed over about 200 pips for benefit of the greenback and today it is traded within the closest levels of support at 1.2478 and resistance at 1.2588. On the four-hour chart the technical analysis looks not rather certain. The MACD histogram passed a zero mark having appeared in a negative zone and falling below the alarm line that is a signal to sale. However, the Stochastic oscillator despite of an arrangement in an oversold zone, doesn’t give a strong signal. Thus, in case of adoption of investment decisions it is necessary to consider the local levels of support and resistance. Development of the bull scenario is the most probable when the price is fixed higher than 1.2588. Opposite movement of the market is the most probable condition of passing of support at 1.2478.

NewForex Analyst

Luigi Campo

Fundamental analysis from New Forex: The Asia-Pacific region

The markets are weaken because of increase in a rate of the Federal Reserve System on 25 basis points. Investors are also frightened of the extended projection for 2017 promising about three increases instead of two planned earlier. Officials declared that they are ready to toughen policy on an inflation acceleration measure as the administration plans to go to large-scale expenses that will lead also to growth of bond yield of the USA. The regional MSCI lost 1.3%: indexes of Wall Street lost 0.5-0.8%, the Canadian TSX of-1.22%, the Australian ASX-0.82. The Chinese CSI 300 on the way to 0.8-1% to losses. But here the Japanese Nikkei grows thanks to the weakened yen for 0.32%. Central Bank of China established JPY exchange rate on 6.9289 against the greenback to the weakest level since 2008 though participants of the market noted that JPY was firm in relation to many other currencies and grew on the trade weighted basis. The greenback grew up to 14-year maxima in 102.62 against JPY, to the level of the beginning on February 117.86 against the Japanese yen that served as an incentive for growth of the Japanese shares. The widest number of economic data will be announced today including read operations at consumer prices and production activity and also a speech of Polose, the head of the Bank of Canada. It can shed light on prospects of Canada monetary policy and provide fresh estimates of the USA market.

Fundamental analysis from New Forex: Europe

The European shares considerably weakened because events served in the USA as a factor of a capitals flight and trade considerably below early annual maxima as U.S. Fed toughened its monetary policy and planned prospects for further toughening. The banking sector of Italy weakened almost for 3% and the oldest bank Monte dei Paschi lost 2.1%. Pan-European Stoxx Europe 600 weakened on 0.5 with considerable losses in cyclic sectors of economy and also large consumer sectors and services of health care where losses constituted from 1.6 up to 3.3%. The European Central Bank suspended incentives for Greece having rolled the stock indexes up to 3.2%. Euro weakened to the level of 1.0460 against the greenback having slipped last year March minimum which constituted 1.0457 that opens prospect for parity rate. The British pound is stable against competitors against the background of positive data from the labor market while the Swiss franc suffers from low forecasts of the banking sector which reached a critical point of growth this week earlier.

NewForex Analyst

Alex Vergunov

 

[Anna Mon]

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

On Friday, the single European currency is traded with small strengthening against the greenback after the minimum of January, 2003 was updated and the price fell to 1.0365. Thus, for today the level of support is the psychological threshold 1.0300 and the level of resistance at 1.0474. On the four-hour chart moving averages with the period of 20 and 55 continue to decrease after recent crossing down. The schedule is located lower than both moving averages that doesn’t exclude further development of the descending movement. MACD is in a negative zone and below the signal line that is an accurate signal for sale. However, one similar signal isn’t enough for adoption of investment decisions. The market is in a situation of a strong imbalance that threatens any similar decisions. Perhaps, today’s statistical data on inflation in the eurozone will be able to break a situation, but for now we prefer to be out of this market until its stabilization and emergence of an accurate and confirmed signals of the technical analysis indicators.

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

After the yesterday’s unanimous decision of the Bank of England to keep an interest rate at the current level, the sterling got small support and quotations were late for a while staying in the corner of 1.2445-1.2499. However, at the time of positive statistics on inflation entry in the USA its decrease was resumed with a new force and now, on Friday, the couple is traded with support level at 1.2300 and resistance at 1.2499 having a considerable bearish market potential. The technical analysis on the four-hour chart indicates continuation of the descending trend. According to the ADX indicator, there is a significant difference between +DI and — DI. The MACD histogram remains in a negative zone and below the signal line which is a strong signal for short positions. Stochastic is in an oversold zone, but without obvious signals. It is worthy of note that for further development of a bearish trend the market needs to be fixed lower than the level of support at 1.2300. For opposite succession of events it is required to be beyond a minimum of last week 1.2548.

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

On Friday’s trades the greenback continues to become stronger against the JPY. Statements of the head of the Federal Reserve D. Yellen concerning soft and gradual toughening of monetary policy couldn’t constrain the bullish potential of national currency. After participants of the market learned that substantial increase of an interest rate for the next three years (2017 — 2019) where the commission will have three session in a year (no more than two meetings were planned earlier), the dollar began to rise in price in relation to absolutely all principal world currencies. The JPY didn’t become an exception. According to technical analysis on the four-hour chart, ascending dynamics of a rate on this trade instrument remains stable, with a good bullish potential. During the biddings in Asia the price returned to the level of February of the current year, with support at 117.53 and with a resistance at 119.25 remaining above the ascending channel. The MACD histogram is above the central line, however begins to move along the time axis with lack of a strong signal. Stochastic left an overbought zone with a signal for sale, the %K line is over the %D line. Thus a small correction in the short term is possible before this market continues its growth.

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

On Wednesday after FRS meeting in this market the ascending trend renewed. On Thursday strengthening of dollar led the following situation: by the end of the European trading session at some time for the greenback it was given 1.0342 of Swiss franc. Today’s trading session is characterized by a small depreciation of national currency of the USA and couple is traded within support at 1.0175 and resistance at 1.0303. However bulls still keep their potential in the long term. On the day chart the MACD histogram also begins to grow in a positive zone which indicates an entrance to the market with long positions. The Stochastic oscillator also confirms the current tendency being at an entrance of an overbought zone with the %K line above the %D line. In the short term, according to a technical analysis at a four-hour timeframe the situation isn’t so unambiguous. Indicators from these two indicators disperse a little that can foretell small correction in dynamics of this market.

NewForex Analyst

Luigi Campo



Fundamental analysis from New Forex: The Asia-Pacific region

The prospect of toughening FRS monetary policy next year was reviewed towards increasing three times, instead of the double reference point accepted earlier in September. These news pushed profitability of 10-year treasury bonds of the USA to two-year maxima while short-term grew to its maxima of 7 years. Primary commodities and precious metals weakened against the background of the greenback strengthening. For today the MSCI Asia-Pacific index lost 1.78% though the Japanese Nikkei grew up at 0.8% because of weak yen. The Wall Street also added: Dow grew up by 0.31%, Nasdaq added 0.37%, and S&P extended for 0.39%. The Australian market lost 0.1% and Canadian added 0.14%. The US dollar became stronger about its 2002 maxima. The dollar index is at the level of 103.10, near its 14-year maxima of 103.56. The American currency is traded at the level of 118.145 yens after departing from a 10-month maximum 118.660 which was reached before. The Australian and Canadian dollars are traded poorly against competitors in relation to weakening tendency of the raw markets.

Fundamental analysis from New Forex: Europe

In Europe it is observed the growing interest in shares which is promoted by more rapid nominal growth, changes in monetary policy, moderately high interest rates and only slightly accelerated inflation. The financial highlights showed growth of the Italian banks up by 4.4% for the last three weeks. In general, the banking sector of Europe enjoys wide popularity among investors these days. The Stoxx Europe 600 index added 0.9% earlier and is traded near its January maxima though has all risks to lose about 2% this year if the rally on cyclical stocks breaks until the end of a quarter. The bank index grew up by 2.5%, having benefited from the growing profitability of the USA treasury bonds. The European currency is traded at the level of 1.0435 against the greenback, having lost 0.2% earlier and having approached 13-year minima in 1.0366. The Bank of England didn’t begin to raise rates and therefore the pound sterling is unpopular today, however the Swiss franc has potential to growth because of the growing interest in bank shares, but this demand is significantly limited by low interest in precious metals.

NewForex Analyst

Alex Vergunov

 

[Anna Mon]

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

Following the trades results for the last week the single European currency keeps above a mark of 1.0400. The ascending movement was limited to mark’s correction to 1.0473. On Monday it is expected that both data on the Index of economic expectations (IFO) across Germany and also Indexes of business optimism with the Indicator of assessment of the current situation for December will be published. If data is better than forecasts or though at their level, the single European currency will get support and remain in the field of the current quotations. If data is worse, the currency will appear under pressure. Well, at last if data on the USA today (Purchasing Managers’ Index in a service sector for December) appear according to the forecast or above, then the pressure upon euro will amplify. So far the pair is traded within support at 1.0422 and resistance at 1.0497.In the long term the market still keeps bearish moods.The technical analysis on the four-hour chart has a small bullish shades. The MACD histogram remains in a negative zone because it is located above the signal line and raises, creating thereby a signal on purchase. The Stochastic oscillator enters an overbought zone with the %K line above the %D line that confirms a bullish spirit of the market in this interim.

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

At the trades on Friday, quotations on this currency pair were at the level of 1.2382, but during trades in America, closer to closing the price returned to the corner of 1.2500. On Monday at the opening of the European trading session the price remains within support levels at 1.2433 and resistance at 1.2559. The MACD histogram on the four-hour chart is in a negative zone, but began to decrease and now it is above the signal line which indicates about weakening of bearish potential of the market. However, at the same time Stochastic reports that bears nevertheless have enough forces to press through the market giving a signal for sale. The indicator of average directed movement ADX speaks well for short positions too. Thus, concerning a short-term outlook despite small weakening of the descending tendencies, sterling still can’t overcome the greenback and to unfold back the current tendency of the market.

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

On Monday pair is traded with small lowering, remaining in the frame of current ascending channel and within support levels at 117.19 and resistance at 118.15. In the long term — the schedule was fixed above the Ichimoku indicator that implies continuation of the ascending trend and further strengthening of the greenback. On the four-hour chart it is possible to notice the reduction of the MACD histogram and Stochastics exit to an oversold zone giving a signal for sale where the %K line is lower than the %D line. Thus, it is recommended to buy about the local level of support in order to fix profit around the upper bound of the ascending channel.

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

On Monday trade on this currency pair is characterized by easy bearish spirit of the market with decrease in quotations of the current level of support at 1.0223 and with a resistance at 1.0293. Having reached its five-year maximum last week , the price returned to a framework of the ascending channel that implies weakening of bullish tendencies, but not changing of general trend in any way. According to ADX Average directional movement index we can expect further strengthening of the greenback against Swiss franc in the long term, the discrepancy of +DI and — DI is rather big and continues to increase. Moving averages were slightly slowed down, but continue to grow up. In the short term, correctional movement down is probably to appear if to trust indicators of the MACD histogram and Stochastic on the four-hour chart.

NewForex Analyst

Luigi Campo


Fundamental analysis from New Forex: The Asia-Pacific region

The regional markets weakened and are traded within its minima of November 21 against the background of deterioration in diplomatic relations between China and the USA because of the captured underwater American UAV today. However, this conflict is exhausted and the UAV will be returned in the nearest future, but investors already managed to react to risks. The local MSCI index weakened at 0.1% to four-weeks minima and at 3% for the last month. The People’s Bank of China accepted provisional regulations for regulation of foreign insurance companies that led shares of Hong Kong to September’s minima. The Japanese Nikkei suffered at 0.2% because of the strengthened yen while the Wall Street shares showed the descending dynamics: industrial Dow lost 0.04%, and S&P 500 and Nasdaq weakened at 0.18 and 0.36% consequently. The Canadian TSX and ASX of Australia also grew up at 0.53% and 0.22. The greenback lost 0.3% against the JPY and is traded at the level of 117.59 in defensive line items against all other competitors. Meanwhile, the yen is in the lead in growth against all principal currencies while CAD and AUD noticeably weakened because of low demand for raw material resources these days.

Fundamental analysis from New Forex: Europe

The European markets grow up led by bank and in general by cyclic shares. Shares of European Banks are traded cheap after the Italian constitutional referendum, but open prospects for growing against the background of incentives of the European regulator. The tendency lingered on and many investors are very cautious being afraid of a turn that led to a moderate and slow growth of these assets. Today the main European indexes opened with growth thanks to the banking sector and positive forecasts for business activity. Besides, the oil prices which jumped up on expectations of further reductions in the future year served as the growth driver. The MSCI Europe index is traded in the range of 0.30-0.45% of a surplus today. The euro index grew up by 0.33% and the currency is traded at the level of 1.0459 against the greenback significantly having added to its minima of last week, that is 13-year minima in 1.0366. The GSCI Energy index grew by 1.81%. The British pound is traded weaker than other principal currencies and here the Swiss franc became stronger against the majority because gold added 0.38% on Friday, reflecting tendency of investors to risks hedging.

NewForex Analyst

Alex Vergunov