Foreign Exchange

HSBC Holdings stock (LSE:HSBA) has generated a clean, low-risk buy signal, following the recent discouraging conditions in the market. From November 2018 to February 2019, price consolidated seriously, and then fell lower in the following few months. Starting from the latter end of March 2019, a nice bullish trend has started. 4 EMAs are used […]

Today’s employment data for Australia dispelled any immediate fears of a rate cut. Yet, if a certain correlation is to hold true, we could see unemployment rise and calls for a cut to return with it. Unemployment ticked higher to 5% (4.9% previously) but as this was in line with expectation, the markets took it […]

New Zealand CPI data missed them mark, instilling a blast of bearish volatility for NZD crosses as traders adjusted to the idea of a May cut. At 1.5% YoY, it’s the lowest CPI read since Q3 2018 and below their own target of 1.6% (markets today were expecting 1.7%). Furthermore, QoQ was just 0.1% vs […]

The Australian dollar fell to the bottom of the pack following today’s RBA minutes, as traders questioned RBA’s confidence in their labour market forecasts. RBA held rates at 1.5% earlier this month and provided what appeared to be a fairly-balanced and neutral statement. We’d noticed that RBA remained confident in the labour market picking up, […]

We’ve continued to monitor CAD/JPY’s potential to break higher, following its 3-wave correction and break of its channel. Having consolidated above its channel throughout last week, Friday’s range expansion candle saw the cross stop just shy of its 200-day eMA and 19th March high. Furthermore, it’s kept alive its potential for form an inverted head […]

Renewed trade optimism and strong earnings from the US on Friday has seen Asia shares break broadly higher today, with the Nikkei 225 trading at its highest level since early December. We can see on the Nikkei 225 futures market that the trend structure is increasingly bullish, and today’s range expansion shows the index accelerating […]

A summary of the weekly Commitment of Traders Report (COT) from CFTC to show market positioning among large speculators. EUR traders extended their net-short exposure to their most bearish level since December 2016 Traders continue to bet on low volatility, with the VIX net-short exposure at its most bearish level since WTI net-long exposure its […]

If the DAX can hold current support levels before breaking to new cycle highs, it could reaffirm the strength of its bullish channel. The DAX has seen some large swings around the 200-day eMA, although a decent trend structure is emerging within a bullish channel on the daily chart. Prices are consolidating near 6-month highs […]

Around 1am London, EUR/USD spiked higher and, upon closer inspection saw the bid for Euro was broadly based. This leaves a potential bullish breakout on the cards for UK or US trading session ahead of the weekend. Whilst the driver is currently unknown, it may be related to Jerome Powell reportedly asserting “Fed independence” at […]

Since early February, AUD/JPY has moved sideways in a 240-pip range. We highlighted its potential to roll over from its highs on Monday and, whilst that potential still remains, we have to be open to the potential for a bullish breakout too. Since the prior analysis, the intraday double top failed to materialise, as prices […]