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Forex Technical & Market Analysis FXCC May 13 2013

Discussion in 'Major Currency Crosses' started by alayoua, May 13, 2013.

  1. alayoua

    alayoua New Member

    Jul 19, 2011
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    Forex Technical & Market Analysis FXCC May 13 2013

    Japan rests re-assured not labeled 'currency manipulator' by G7

    Over the weekend, the G7 re-assured the market that Japan is not deliberately weakening the yen in order to create a competitive advantage against other industrialized nations. The group repeated its old same lines about its commitment to avoid artificial currency devaluation for domestic gain purposes, while re-iterating its commitment to avoid volatility in FX rates. According to Mike Paterson, editor at Forexlive: "The general consensus seems to be they accept Japan’s arguments that their dramatic easing on monetary policy is aimed at combating deflation rather than weaker currency advantage." Mr. Paterson thinks the last developments in the G7 meeting "should be the green light for further yen selling when markets re-open given that it takes the uncertainty out of the equation but the announcement was hardly a surprise" he said.

    It will be interesting to see just how much weaker it gets in the early stages. Failure to drop too far will suggest that there rightly should be an air of caution after such rapid falls. But as the say goes, all that glitters is not gold, and US, Canada and Germany were all suspiciously more notorious on voicing out a closer monitoring over Japan's next policy actions. As Mr. Paterson rightly points out, "behind the scenes of G7, sure there is not such a united front as they wish to portray." U.S. Treasury Secretary Jack Lew had something to say on yen weakness: “We’ll keep an eye on that”, suggesting that any signs of currency manipulation by Japan will be watch very closely, adding that Japan had “growth issues.” Japan's Finance Minister Mr. Aso confirmed to media reporters that no criticism was noted on Japan’s monetary easing. https://support.fxcc.com/email/technical/13052013/

    24h | EMU. Eurogroup meeting
    2013-05-13 12:30 GMT | USA. Retail Sales
    2013-05-13 14:00 GMT | USA. Business Inventories (Mar)
    2013-05-13 22:45 GMT | New Zeland. Retail Sales

    2013-05-13 04:32 GMT | EUR/USD uncomfortable below 1.30, further definition needed
    2013-05-13 04:21 GMT | USD extends gains; Gold takes a hit
    2013-05-13 03:34 GMT | Gold selling off sharply below $1430
    2013-05-13 03:24 GMT | USD/JPY, expect little pullback in the high 101s - RBS

    EURUSD :
    HIGH 1.29781 LOW 1.29595 BID 1.29756 ASK 1.29758 CHANGE -0.12% TIME 08 : 04:42


    TREND CONDITION :Down trend

    MARKET ANALYSIS - Intraday Analysis

    Upwards scenario: Neutral hourly studies point towards further consolidation, with a break of next resistive structure at 1.3011 (R1) is required to spark stronger upside action. In such scenario we would suggest our next initial targets at 1.3036 (R2) and 1.3062 (R3). Downwards scenario: Medium-term bias is clearly negative. Possible progress below the initial support level at 1.2957 (S1) might expose our intraday targets at 1.2934 (S2) and then 1.2909 (S3).

    Resistance Levels: 1.3011, 1.3036, 1.3062

    Support Levels: 1.2957, 1.2934, 1.2909

    GBPUSD :
    HIGH 1.53578 LOW 1.53357 BID 1.53519 ASK 1.53529 CHANGE -0.07% TIME 08 : 04:42


    TREND CONDITION :Down trend

    Upwards scenario: GBPUSD is consolidating today however we see potential for further appreciation towards to our targets at 1.5403 (R2) and 1.5429 (R3) if the price manages to overcome key resistance measure at 1.5377 (R1). Downwards scenario: Next support level is seen at 1.5334 (S1), any penetration below it might activate further downside pressure and enable lower target at 1.5310 (S2). Any further market decline would then be limited to final support at 1.5284 (S3).

    Resistance Levels: 1.5377, 1.5403, 1.5429

    Support Levels: 1.5334, 1.5310, 1.5284

    USDJPY :
    HIGH 102.151 LOW 101.74 BID 101.751 ASK 101.752 CHANGE 0.14% TIME 08 : 04:43



    Upwards scenario: Further uptrend development is possible above the next resistance level at 102.18 (R1). Break here would open route towards to higher target at 102.65 (R2) and any further price advance would then be limited to 103.12 (R3). Downwards scenario: On the other hand, a break of the support at 101.44 (S1) is required to determine negative intraday bias and enable lower target at 101.01 (S2). Clearance of this target would open a path towards to final support for today at 100.57 (S3).

    Resistance Levels: 102.18, 102.65, 103.12

    Support Levels: 101.44, 101.01, 100.57

    Source: FX Central Clearing Ltd,( ECN Broker | Forex Practice Account | Forex Trading Blog | FXCC )

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