Westpac - "USD strength has been a key theme of late. The bulk of its gains however have been posted against a motley bunch of currencies. In the last month USD strength has been concentrated primarily against the likes of AUD, SEK, NZD and CHF. Over the last week JPY, NZD, AUD and CHF have ceded the most ground to the USD. EUR on the other hand, while lower over both the last week and month against the USD, has weathered the USD’s rally comparatively well.

(...) Our longer term…

TD Securities - "We have upgraded our outlook for the USD across a broad front. We are adjusting our views to reflect some market developments that have occurred a little more rapidly than we had expected (such as the push up in USD/JPY). But we are also recognising the emergence of some trends that we feel support our long-held view that the USD’s secular bear trend is very mature and is poised to show signs of a further recovery.

(...) We have upgraded out USD/JPY forecast to reflect…

Societé Generale - "The FX markets are now under the influence of a trilogy of themes: the American economic revival, diverging monetary policy expectations and the (unfinished) euro area (EA) crisis.

Those themes all point in the same direction: a stronger dollar. Dollar strength is now far less dependent on risk conditions; the US economic outperformance and the fears of a not-too-distant Fed exit imply that the dollar is no longer a funding currency of choice in the carry trade. The…

BMO Capital Markets - "We foresee at least two powerful factors acting in favour of the USD over the short-run: improving spreads vis-à-vis the rest of the world and reasonably light US capital outflows relative to the middle of the last decade. On the former point, there is every reason to believe that the concurrent economic weakness in Asia and inside of EMU as well as very low rates in general outside of the US will favour US rates over foreign rates. Despite this short-term…

J.P. Morgan - "As has occurred about twice a year during the post-Lehman era, a global rates sell-off is ripping through currency markets. Month-to-date, 10-yr Japan is up 11bp, Germany and Australia +13bp, UK +18bp and US +21bp, while the dollar has rallied versus 70% of currencies (exceptions this month have been NOK, CNY, MXN, MYR and PEN). FX correlations, which had fallen to 2.0% multi-year lows in the presence of numerous country-specific events this year, have popped higher, as one of…

EUR performed a flat consolidation within a narrow range yesterday and tested once again support 1.2940-50 but quickly recovered showing that around 1.2950 there are a lot of buyers. This morning we have a jump higher reaching the MA200 on H4 @ 1.3025. breaking above that MA200 will take us to 1.3070. However further upside today will be difficult and is very possible the price to reverse this afternoon back to 1.3000. Daily and H4 indicators are bullish, smaller too, just H1 is bearish at…

Aud/Usd broken it’s bearish trend-line in 60min chart, while in 240min chart, it’s complete it’s ending diagonal pattern, as a part of wave v of wave [3].

I am expecting pull back here, we are looking for possible target zone in wave [4] as follow:

1) 1.0027 – 23.6% Fibonacci Target

2) 1.0085-1.0095 –…

EUR dropped down on Friday as the second test of 1.3190 was unsuccessful. In fact i was expecting a fail a little above and making a double top. Currently EUR has stopped at the 1.2960 support but the downside pressure is still too strong on H4, indicators on H1 show a close recovery to 1.3020 and drop again to 1.2950 at least. The target will be 1.2860 area, where is the diagonal support line starting from in 1.2050. I think it will bounce this time too, so go long close to 1.2860 and…

Rabobank - "We have been arguing over the past month that while the yen should remain on a weakening trend that the upside potential of USD/JPY would be slowed if the market was paring back the size of its USD positions. This view seems to have been upheld in April though yesterday’s break of the psychologically important USD/JPY100 levels has injected fresh life into the currency pair. Over the coming weeks we continue to expect that the tone of the USD will be key in determining the pace…

GBP/USD is forming the bullish setup as mentioned on my earlier post.So Keeping that in mind, we require to have see 1.5700-1.5750 in coming days. Pair already confirmed the bullish idea by breaking the channel out and can label as described in below image. Any long should have stop loss @ 1.5465

On alternate idea, we can expect a flat correction, but the probability of flat correction is very…

EUR has made some progress to the upside and the diagonal support line of which i have talked yesterday has done a good job. EUR has reached three of my long targets and now consolidates around the support zone 1.3150-65. It is very likely in the following hours to make another test of 1.3195 and if unsuccessful to reverse back to 1.3130. Please note that any drop below 1.3085 will take us quickly to 1.3000 and maybe below. For now 1.3130 serves as a good support so you may enter LONG there…

I change label little bit from impulse wave to corrective wave, but path is still down. Once we complete wave B, aud/usd can set for lower. Any short should have protective stop loss @ 1.0370. Current price is testing the 38.2% Fibonacci level along with upper boundary of the channel. So, there are chances that, aud/usd can reverse from here, or from 50% @ 1.027 area.

 …

EUR has made another attempt to go higher,but not successful and finally continues consolidation from the beginning of the week. We have a diagonal support line starting from 23 april 2013 which caps any downside for now.breaking below will take us at least 100 pips down. All indicators on almost all time frames are going flat. We are failing to break the 1.3000 level for over a month and any break will take us below for a continuous period too. However as long as we are above the upside is…

Current price is not bearish at all, at least on my primary count. We might see price trading above 1.56 area. On Alternate idea, we might be in wave 1 of first impulse leg down. But that too is not completed, We only can identified 3 waves. So here is the game plan for gbp/usd.

Case 1: Trading for wave 5 (Primary) Bullish Setup

we will wait…

Gbp/Usd current price might be part of flat correction of wave 4, and expecting another high above 1.5605 before it having sell off. I booked 29 pips profit and decided to see the reaction here. There are chances on which, pound can drop to 1.52 from current price. But on 240 min, chart, there were no impulse action found. and only way I can count is flat correction.

On NFP day, there were sell off happen,…

Aud/Usd is bearish and should stay under 1.0220. Our first target met here, and still looking lower under @ 1.01. Risk can be lowered down here on top of wave [2].

Written by: ewTrading.wordpress.com…

EUR consolidated almost the whole day yesterday and later through the american session it dropped to 1.3053 with a 25 pips pullback then stablilized around 1.3080. Currently the EUR is in another consolidation and is slowly heading towards 1.3100. At 1.3115 we have a fibo level and if the price breaks it higher the move to the north will continue with first target 1.3150 then 1.3185 and then 1.3230. On Daily chart we are deeply inside a negative ichimoku and if we have any upside move it…

Deutsche Bank - "Spring time trends in 2010, 2011 and 2012 were partly the result of bouts of risk aversion triggered by seasonal data weakness and Eurozone blow-ups. However, monetary policy divergence also played an important role, with the distance between the highest short-term interest rate and the lowest in G10 rising significantly, in line with currency trends. At the time of writing, there is scant evidence of this phenomenon so far, but we think this will change. Firstly, deflation…

GBPUSD is moving short rang ascending channel. Currently testing upper trend line and resistance zone. With repeated r ejection from current zone it is anticipated that price will move for a corrective move from current zone. Break out of current resistance zone will provide short term Short Setup.



Outlook – Short



Short Entry (1.55830 - 1.55435) 

TP 1 - 1.55050 

TP 2 - 1.53982

SL -…

EUR dropped sharply yesterday as the ECB cut the rate. We are moving inside the negative Ichimoku on Daily and more slide is expected in the following days to the bottom of that cloud. Today's resistance will be the fibo level of 1.3115 and the target will be the supports 1.3030-1.3000-1.2980-1.2950. Bears are in full control, today the most important news will be the NFP. The expectations are for 145k, which is a lot better than previous 88k. Any higher value will lead to another dollar…