FX Daily Hotline
The British Pound has recorded a 0.9% loss against the US Dollar for Tuesday's session. The graph displays that a good portion of this month's earlier rally has now been retraced. What is more serious, however, is that the pattern since May is looking increasingly top heavy. Should a breach in support along the US$1.5100 occur, a test of the year's earlier, and much smaller, base area is likely. That region stretches down to US$1.4566.
Against the Japanese Yen, the British Pound has recorded a 1.2% loss, as it retreats from the 50-day Moving Average. A push past recent resistance at Y188.316 would be required to remove the danger of a further retracement of this month's earlier rally from the Y180 region.
Other currencies are also struggling versus Japan's unit. The Australian Dollar, for instance, shed 0.9% yesterday, as it continued its 'bull trap' reaction (following the failed break over the late-August high). A clearance of the resistance near the 50-day MA would be needed in order to offset current scope for further slippage towards the lows near Y82.
The Swiss Franc has reasserted the downtrend from the June ceiling v Yen, after plotting a 'Peak' Key Day Reversal on Friday from Y125.291. Both the long and short-term MAs appear to be acting as a barrier now; and a sustained break over those lines is necessary to interrupt the downward tendency.
The US Dollar Trade Weighted Index has firmed within the wide trading band to challenge early-September resistance at 96.616. A breakout will leave the August high at 98.455 as the next chart target. At the time of writing, the US$ is up against all six members.
Against the Mexican Peso, the Greenback registered a 1.3% gain on Wednesday. The 50-day MA has offered uptrend support, as the rate points back to the overbought August, and all-time, high at MP17.3056.
|ZAR||US$/South African Rand||13.6795||+1.5%|
|EURZAR||Euro/South African Rand||15.2106||+0.9%|
|USDGBP||US Dollar/British Pound||0.6508||+0.9%|
|LACI||Latin America Dollar Index||65.03||-1.4%|
|AUDJPY||Australian Dollar/Japanese Yen||85.185||-0.9%|
|GBPUSD||British Pound/US Dollar||1.5365||-0.9%|
|Date||Stock||Code||Type||Open Price||Current Price||% P&L||Target||Stop|
|25 Aug 2015||US$/Canadian Dollar||CAD||Long||1.3336||1.3272||-0.48%||1.26|
|7 Sep 2015||GBP/Singaporean Dollar||GBPSGD||Long||2.1808||2.1768||-0.18%||2.085|
- There are no changes today.
|DXY||US Dollar Index||Firms to test the early-Sept high (96.616); within the broad trading band.||96.329||+0.5%||92.621/94.063||98.455/96.616|
|EUR||Euro/US Dollar||Retraces to test the early-Sept low (1.1087); within the wide trading band.||1.112||-0.6%||1.0809/1.1087||1.1714/1.146|
|GBPUSD||British Pound/US Dollar||Drops within the m-t trading band (potential top).||1.5365||-0.9%||1.4857/1.5089||1.5945/1.593|
|CAD||US$/Canadian Dollar||Reasserts the advance towards the May 2004 peak near 1.4.||1.3272||+0.1%||1.2862/1.2952||1.4002/1.382/1.3384|
|JPY||US$/Japanese Yen||Ranging after the recovery from oversold and the Dec/Jan floor.||120.15||-0.3%||115.57/116.18||124.48/121.75|
|ZAR||US$/South African Rand||Reverses the fall from overbought and the Aug all-time high. Finds support near the 50-day MA.||13.6795||+1.5%||12.2993/12.9828||14.0682|
|KRW||South Korean Won per 1 US Dollar||Rallies from late-Jul/early-Aug support (1155.79). Possibly reasserting the uptrend.||1179.17||+0.4%||1097.47/1155.79||1242.53/1208.72|
|CHF||US$/Swiss Franc||Jumps back up towards the Aug high (0.9903).||0.9751||+0.3%||0.9259/0.9528||1.0129/0.9903/0.9824|
|EURGBP||Euro/Pounds Sterling||Falls out of the s-t range forming beneath the May high (0.7483). Potential m-t base extension.||0.7237||+0.3%||0.6936||0.7592/0.7483|
|EURJPY||Euro/Japanese Yen||Retraces the recovery from oversold. Potential top.||133.6||-1.0%||132.23||139/137.45|
|EURCHF||Euro/Swiss Franc||Gradual uptrend pauses.||1.0846||-0.3%||1.0234/1.0531||1.2097/1.105|
|GBPJPY||GBP/Japanese Yen||Recovery from oversold stalls near the 50-day MA.||184.625||-1.2%||180.242||190/188.316|
|GBPCHF||GBP/Swiss Franc||S-t rally slows beneath the overbought Aug high.||1.4983||-0.6%||1.4467/1.4605||1.5589/1.5411|
|CHFJPY||Sfr/Japanese Yen||Counter move from oversold is checked with a 'Peak' KDR. Reasserts the downtrend from the June ceiling.||123.221||-0.7%||119.917/121.952?||129.07/125.29|
|AUDJPY||Australian Dollar/Japanese Yen||Finds resistance at 87.514; near the 50-day MA. Failed break over the late-Aug high (87.341). Potential 'bull trap'.||85.185||-0.9%||79.315/81.925||92.432/87.514|
|AUD||Australian Dollar/US Dollar||Recovery from oversold; and the upper side of the 2008/2009 base, finds downtrend resistance at the 50-day MA.||0.7089||-0.6%||0.6009/0.6771/0.6896||0.744/0.728|
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