• The Forex, Binary Options Forum - welcomes you to our Community!

    DigitalCashPalace Forum is dedicated to discussions about Forex, Binary Options, commodities, stocks related.

    Please take a look around, and feel free to .

HiWayFX - Market News

HiWayFX

Broker Representative
2vlk47t.jpg



US Stocks Tap All-Time Highs- Measure Move Targets for S&P 500

Futures on the S&P 500 index touched all-time highs today of 2120.50.

The feeling seems to be that high interest rates in the near future are not all that bad for markets.

Additionally, the historical correlation between US stocks and the Dollar has been positive, meaning that a stronger US Dollar means a stronger US stock market in the long term.

For further information, read more from our Webpage.
 

HiWayFX

Broker Representative
259jw8z.png



Investors punish the US Dollar as economy shows signs of stalling.

The US Dollar is looking weaker as the weeks roll by and economic data from the world's largest economy continues to be weak. There is no doubt that the US economy contracted in the first quarter, going by the recent weak data posted. There is no doubt that a June rate hike is definitely off the table, unless we get to see a miraculous turnaround for May and June, and that includes a stronger jobs report (similar to what we saw during the first quarter of this year) and an overall pickup in retail sales and more importantly inflation. But this scenario looks a bit farfetched and in the longer perspective, the current decline in the Greenback could possibly be attributed to the markets pricing in no rate cut in June.

Read full article from our webpage.
 

HiWayFX

Broker Representative
2ynf88x.png



The Biggest Short Ever Probably Signals a Bottom for Euro.

It turns out everyone was horribly wrong about the Euro collapsing (yet again). Deflation never came, the economy in the US sputtered, and the economy in the EU seems to have recovered. It is true that the Federal Reserve will raise interest rates probably even before the ECB tapers its bond buying, but the market is in consensus that even with rate rises, they will be very slow and take very long.

For further information, read more from our Webpage.
 

HiWayFX

Broker Representative
m9ol1s.jpg



Markets get a reminder of monetary policy divergence.

Setting aside all other factors, one major theme that stands out from last week has been the Central Banker talk. Governors of major Central Banks across the US, Canada, Europe and Japan took turns to remind the markets about their respective monetary policies as the spotlight turned on them.

Read from our Webpage for further information about this article.
 

HiWayFX

Broker Representative
2hnrms9.jpg



It’s Crunch Time for the Euro

As the month of May winds up to a close, the months ahead, especially June and July could prove to be quite some decisive months as far as the single currency, the Euro is concerned.

With the US Dollar poised to make a comeback after what looks like a reasonable correction to the trend, the strength of the Greenback, combined with the Greece crisis showing no signs of abating and with huge dues to be repaid to the IMF in the coming months, the Euro could well see some volatility in the summer months ahead.

Read more from our Webpage.
 

HiWayFX

Broker Representative
Staying Hands-Off the Euro Until More Clarity from Greece


160q4hf.png



The technical picture for EUR/USD is currently a toss-up, with the currency likely to go either up or down with both having a 50% chance. The same picture is reflected in the talks between Greece and it’s creditors as it’s mostly a 50-50 chance that there will be any agreement for Greece to get rescue funds before Wednesday, when Greece must make a large repayment to the IMF.


Read more
 

HiWayFX

Broker Representative
Will the Fed Hike Rates in June?


Starting with the month of June, every FOMC meeting is likely to garner a lot of attention as it officially marks the start of the timeframe where the Fed could potentially start to hike its interest rate cycle. A few months ago, to the start of the year, the market consensus for a US Fed funds rate hike has been on the cards. Thanks to the weak print in the job numbers in March and a sharp downward revision to January and February numbers, the consensus has been that the Fed could now start to hike rates around September as against the earlier consensus of June.


Read more at: https://www.hiwayfx.com/market-news/will-fed-hike-rates-june

30nez2t.png
 

HiWayFX

Broker Representative
German Bund Yield Pulls Back as Euro Consolidates


We've shown you the main reason for strength in the EUR/USD currency pair previously, and we're starting to see signs of consolidation in both markets.

The Euro remains largely directionless since May, and right now we're trading right where we were on the first of May. All of this makes sense because of the looming uncertainty of the Greek debt drama; the market has no reason to move hard until it ends - sometime at the end of June.

The yield on German Bunds has also retreated in relation to it's counterpart US Treasury Bonds and we've seen that this correlation is very strong with the EUR/USD. The following chart shows that the Bund-Treasury spread has gone up faster than the EUR/USD exchange rate, signalling that the market might be ready to move higher at the end of this Greek drama.

v3dqg3.png



Source: DTN, HiWayFX

There are a couple of reasons to take the contrarian view that the Euro will rise even in the face of the Greek debt crisis. Some European asset managers are ready to buy regardless of the outcome. The thinking is that even if Greece defaults or exits the Eurozone, then essentially the crisis will finally give way to the strong fundamentals of the Euro economy. Basically any decline in Euro would be a buying opportunity.

This correlation chart seems to support that view.
 

HiWayFX

Broker Representative
While the markets focus on Fed, the Sterling steadily rallies

2vwi79e.png


Last week, the FOMC meeting showed that the Fed was on track for a rate hike in 2015. Of course, the meeting was not as straight forward with a lot of variables in play. Questions still remain as to the number of rate hikes as well as by how much the Fed would hike the interest rates. The markets shifted attention to the Fed's Staff Economic Projections or SEP, where the FOMC members lowered the GDP for the year while expecting to see a higher unemployment rate. The FOMC projections left inflation unchanged. With a dovish-neutral outlook the US Dollar turned weaker across the board before managing to stabilize and trim some of its losses.

Read more https://goo.gl/4G6vfQ
 

HiWayFX

Broker Representative
USD/JPY Advance Provides Better Trading Opportunities

With the EUR/USD market looking like a seeming pinball game with no direction, decoupled from fundamentals, and little technical sense, traders have been wondering where to go in the Forex market for "normal" trading; something that we haven't seen since 2014 and before in EUR/USD, but which is more or less intact in USD/JPY.

The strong uptrend in USD/JPY has been going since 2012. Now, even though markets have a tendency to turn against you the longer they've been trading in one pattern, it's not necessary to just blindly buy USD/JPY expecting gains any time. The reason why we like USD/JPY is because of the orderly patterns it trades in while it has been in it's uptrend. The periods where it's actually going up are relatively short. Between this, there are long periods of stead range trading, giving the opportunity to play the edges.

23jo09w.png


In the daily chart above, we can see that the regular consolidation patterns give way to strong up moves.

The current consolidation seems to have the best support level at 122.50 and resistance at 125 and 124.50. With just these three levels, we could have good trade setups for months to come. The only thing required is patience and disciplined use of limit orders!
 

HiWayFX

Broker Representative
Euro Panic Subsides, Downside Still Limited

One of the most important things to remember when trading Forex markets like the ones we're seeing now is to trade what you see.

That is, trade what you see on the charts and don't listen to what you hear in the media. If we took the media's word for it, then we probably would've been panicking like everyone else on Monday when they were touting the apocalypse-like situation in Greece and for the rest of the Eurozone. In reality, the EUR/USD market overreacted on Monday morning when it gapped down 170 pips. This wasn't a chance to jump on the bandwagon and sell sell sell; it was a quick buying opportunity.

28sbz9f.png


Read more
 

HiWayFX

Broker Representative
Forex Markets Likely to Have Major Gaps on Monday Open

19rpzo.jpg


After the last gap of 170 pips down this past Monday, we're expecting the same thing after Forex markets open in Australia on Monday.

The trouble with this kind of market is that it is a straight 50/50 bet, and it's only worth holding trades or trading on this news if you're a betting type of person. We take the view that there is no trade here, as it will only be clear what the next trade setups will be well into the London trading session on Monday.

Read more
 

HiWayFX

Broker Representative
European Turmoil Provides Opportunity for USD/JPY Short

Much of the optimism and fanfare over global economic recovery in 2014 has been quashed by the intransigence of Germany and European leaders to solve the region's debt problems. The problems with Greece seem to bear out the unfinished nature of the Eurozone and it makes more sense as to why it is referred to as the Euro "project".

Before Europe started making it up as they go along and trying patch up a sailing ship full of holes, financial markets were celebrating a return to growth in the US and the Eurozone. Talk of a Fed rate hike is still going strong and investors still believe we could get the first rate hike this year.

We think everyone will be in for a big disappointment, especially if the situation in Europe turns into a full-on economic slowdown. Even without an economic collapse, the integrity of Europe has been severely hurt by the fact that a first-world country in the heart of Europe is essentially being pushed down into third-world status, all while inside of what's supposed to be a "Union" which promised to bring many countries together instead of drive them apart.

Read more

of2b1g.png
 

HiWayFX

Broker Representative
Market Outlook

EUR / USD
The EUR declined 0.13% against the USD and closed at 1.0985.
EUR/USD rose sharply to remain on track for a positive week, as the potential for a Grexit from the euro became even more remote on Thursday after a critical Greek vote passed in Parliament during a late-night session.
The pair is expected to find support at 1.0929 and a fall through could take it to the next support level 1.0875.
The pair is expected to find its first resistance at 1.1028, and a rise through could take it to the next resistance level of 1.1073 .

GBP / USD
The GBP declined 0.02% against the USD and closed at 1.5514 .The pound edged lower against the U.S. dollar on Thursday, after the release of downbeat U.K. retail sales data, although hopes for a rate hike by the Bank of England later in the year continued to support.
The pair is expected to find support at 1.5451 and a fall through could take it to the next support level of 1.5387.
The pair is expected to find its first resistance at 1.5626 and a rise through could take it to the next resistance level of 1.5737.

AUD / USD

The AUD Decline 0.77% against the USD and closed at 0.7355 .The Australian dollar slumped on Friday in Asia as a flash survey of China manufacturing in July showed a fall below expectations and previous levels, pointing to lower demand for key exports such as iron ore.
The pair is expected to find support at 0.7328 .and a fall through could take it to the next support level of 0.7299.
The pair is expected to find its first resistance at 0.7404, and a rise through could take it to the next resistance level of 0.7451.

USD / JPY

The USD decline 0.01% against the JPY and closed at 123.92.
The U.S. dollar edged higher against the yen on Thursday, boosted by data showing that U.S. jobless claims fell to the lowest level since November 1973 last week and as progress on the Greek debt front weighed on demand for the safe-haven yen.
The pair is expected to find support at 123.64, and a fall through could take it to the next support level of 123.37.

The pair is expected to find its first resistance at 124.19, and a rise through could take it to the next resistance level of 124.47.

XAU / USD
Gold Decline 1.07% against the USD at 1,094.10 .
Gold prices fell hard in Asia on Friday as investors see a slowdown in China manufacturing as ensuring continued easy policy by one of the world's top yellow metal buyers and as continued to assess the scope for a Federal Reserve rate hike in September and geopolitical tension appears eased for now.
The pair is expected to find support at 1088.66, and a fall through could take it to the next support level of 1083.33.
The pair is expected to find its first resistance at 1098.46, and a rise through could take it to the next resistance level of 1102.93.
 

HiWayFX

Broker Representative
EURUSD
The EURUSD failed to continue its bearish momentum last week after unable to make a clear break below 1.0820 key support. The bias is bullish in nearest term testing 1.1050 and the trend line resistance area as you can see on my hourly chart below. Immediate support is seen around 1.0950. A clear break below that area could lead price to neutral zone in nearest term testing 1.0900 region. Potential daily range today is seen between 1.0950 – 1.1050.

eurusd18-645x369.jpg


GBPUSD
The GBPUSD was indecisive last week. The bias is neutral in nearest term. As you can see on my H1 chart below, price is moving below the EMA 200 after formed a triple top formation suggests a bearish scenario with nearest target seen around 1.5420. Immediate resistance is seen around 1.5570. A clear break above that area could trigger further bullish pressure testing 1.5650 region. Potential daily range today is seen between 1.5420 – 1.5570.

gbpusd16-645x369.jpg


USDJPY
The USDJPY didn’t make significant movement yesterday. The bias is neutral in nearest term probably with a little bearish bias testing 123.25. Immediate resistance is seen around 123.75. A clear break above that area could trigger further bullish pressure testing 124.50 area. Potential daily range today is seen between 123.25 – 124.50.

usdjpy17-645x369.jpg


USDCHF
The USDCHF was indecisive last week. The bias is neutral in nearest term probably with a little bearish bias testing 0.9540 support area. Immediate resistance is seen around 0.9650. A clear break above that area could trigger further bullish pressure testing 0.9700 or higher. Potential daily range today is seen between 0.9540 – 0.9650.

usdchf20-645x369.jpg


- See more at: https://www.hiwayfx.com/market-news/technical-analysis-27072015#sthash.uyxlK31v.dpuf
 

HiWayFX

Broker Representative
EUR / USD
The EUR declined 0.05% against the USD and closed at 1.1088 .
EUR/USD surged on Monday enjoying one of its highest one-day gains in nearly a month, as investors await the Federal Open Market Committee's two-day meeting starting on Tuesday for further hints on the timing of a highly-anticipated interest rate hike.
The pair is expected to find support at 1.0997 , and a fall through could take it to the next support level of 1.0900 .
The pair is expected to find its first resistance at 1.1161 , and a rise through could take it to the next resistance level of 1.1228 .

GBP / USD
The GBP declined 0.11% against the USD and closed at 1.5560 .
GBP/USD has been on the bid in a weaker dollar environment again, while we await the week to unfold with plenty of data to keep us on our toes.
The pair is expected to find support at 1.5504, and a fall through could take it to the next support level of 1.5446 .
The pair is expected to find its first resistance at 1.5608, and a rise through could take it to the next resistance level of 1.5654 .

AUD / USD
The AUD rise 0.72% against the USD and closed at 0.7268 .
The mid-Asian session witnessed a fresh demand for the Australian dollar, lifting AUD/USD to fresh session highs above 0.73 handle, largely on positions unwinding ahead of key – FOMC statement scheduled for release on Wednesday.
The pair is expected to find support at 0.7254 .and a fall through could take it to the next support level of 0.7231 .
The pair is expected to find its first resistance at 0.7312 , and a rise through could take it to the next resistance level of 0.7347 .

USD / JPY
The USD decline 00% against the JPY and closed at 0.0081 .
The US dollar reversed mild gains and fell into the negative territory against its Japanese counterpart in the Asian morning, knocking-off USD/JPY to session lows near 123 handle. The major lost ground once again and sipped in the red as the yen remains well bid on risk-aversion amid China turmoil.
The pair is expected to find support at 122.93, and a fall through could take it to the next support level of 122.58.
The pair is expected to find its first resistance at 123.71, and a rise through could take it to the next resistance level of 124.14.

XAU / USD
Gold Declined 0.14% against the USD at 1,096.90 .
Gold prices on Comex dropped in Asia, having failed to reclaim 1100 threshold in the previous session, as sliding Asian equities and broadly softer greenback offers little support to the yellow metal.
The pair is expected to find support at 1094.00 , and a fall through could take it to the next support level of 1093.10 .
The pair is expected to find its first resistance at 1095.90 , and a rise through could take it to the next resistance level of 1096.90 .

- See more at: https://www.hiwayfx.com/market-news/daily-market-outlook-28072015#sthash.UT55RFeg.dpuf
 

HiWayFX

Broker Representative
EUR / USD
The EUR declined 0.15% against the USD and closed at 1.1060 .The EUR/USD pair reversed a part of yesterday’s slide and edged higher in the mid-Asian trades, largely as the US dollar corrected lower after the recent strength. While the European currency also bounced versus its American counterpart as traders continued to digest the unexpected dive in the US consumer confidence, awaiting the outcome of the two-day Fed meeting due later in the US session.The pair is expected to find support at 1.1020 ,and a fall through could take it to the next support level 1.0980 .The pair is expected to find its first resistance at 1.1100 , and a rise through could take it to the next resistance level of 1.1140 .

GBP / USD
The GBP declined 0.01% against the USD and closed at 1.5615 .GBP/USD pair surged to a fresh weekly high of 1.5627, with the Pound finding intraday demand after the release of the UK GDP figures for the second quarter of this 2015.The pair is expected to find support at 1.5549, and a fall through could take it to the next support level of 1.5486 .The pair is expected to find its first resistance at 1.5652 ,and a rise through could take it to the next resistance level of 1.5692.

AUD / USD
The AUD Declined 0.10% against the USD and closed at 0.7337 .The bid tone surrounding the AUD/USD pair remains intact in the Asian morning, now pushing the Aussie towards 0.7350 – key levels as broad based US dollar softness paired with stabilizing commodities prices continue to boost the AUD bulls.The pair is expected to find support at 0.7278.and a fall through could take it to the next support level of 0.7219.The pair is expected to find its first resistance at 0.7372, and a rise through could take it to the next resistance level of 0.7407.

USD / JPY
The USD decline 0.11% against the JPY and closed at 123.57 .USD/JPY reversed previous gains and fell into the negative territory in the mid-Asian session, as the Japanese currency enjoys stronger than expected Japanese retail sales numbers while the greenback edged lower on profit-taking after the recent strength.The pair is expected to find support at 123.13, and a fall through could take it to the next support level of 122.70.The pair is expected to find its first resistance at 123.90, and a rise through could take it to the next resistance level of 124.24.

XAU / USD
Gold Declined 0% against the USD at 1,096.70 .Gold prices eased in Asia early Wednesday, continuing a downward trend from overnight with eyes on the Federal Open Market Committee statement due later in the day.The pair is expected to find support at 1092.30, and a fall through could take it to the next support level of 1087.90.The pair is expected to find its first resistance at 1099.90, and a rise through could take it to the next resistance level of 1103.10.

- See more at: https://www.hiwayfx.com/market-news/market-outlook-29072015#sthash.D1R51HwU.dpuf
 

HiWayFX

Broker Representative
IMF Unlikely to Bailout Greece

The bailout deal supposedly secured for Greece is in jeopardy because it is disqualified from receiving new bailout money from the IMF. This could mean that the entire bailout for Greece is at risk since Germany will not back any bailout with the participation of the IMF.

The Financial Times writes:
According to a four-page “strictly confidential” summary of Wednesday’s board meeting, IMF negotiators will take part in policy discussions to ensure the eurozone’s new bailout “is consistent with what the Fund has in mind”.
But they “cannot reach staff level agreement at this stage”. The Fund will only decide whether to take part after Greece has “agreed on a comprehensive set of reforms” and, crucially, after Eurozone bailout lenders have “agreed on debt relief”.
But the IMF has a good reason for backing out of this bailout, and it's because the deal is bad for Greece and it's bad for Europe.
The IMF rightly believes that any new bailout money for Greece should come with debt relief as well. The debt mountain Greece is currently saddled with is impossible to pay back, and it ensures Greece's failure because investors and financial markets will never have confidence in Greece while it is essentially in debt enslavement.

This actually looks like the first time someone is taking Greece's side besides Greece. It seems that all of the brinksmanship and stubbornness of the Syriza party and Yanis Varoufakis, the former Greek finance minister, has paid off in garnering some attention to the fact that Greece can only become viable if some of it's debt is forgiven and/or restructured.
The IMF will likely force the Troika's hand in the coming months by holding up any bailout for Greece by requiring debt relief. We don't believe that this development will throw Greece into default somewhere down the line. It's almost certain that the Troika will come to an agreement if the IMF continues to demand debt relief, but expect to see another drama play out when negotiations begin again and an agreement is made at the last possible minute.

- See more at: https://www.hiwayfx.com/market-news/imf-unlikely-bailout-greece#sthash.wKn5eRCt.dpuf
 

HiWayFX

Broker Representative
The U.S Nonfarm Payroll Report

The U.S Nonfarm payroll Report is put together and released on the first Friday of each month by the Bureau of Labour Statistics and it offers a complete illustration of the country’s economic state. The numbers released in the report include the unemployment rate, job growth, average hourly earnings and the manufacturing subcomponent of the report which shows specific growth or contradiction in the manufacturing sector every month. Excluded from the report are all general government and household employees, as well as non-profit organization and farm employees.

- See more at: https://www.hiwayfx.com/forex-hub/us-nonfarm-payroll-report#sthash.qIDgmYy7.dpuf
 
Top