01.02.2016 - We are waiting for a strong movement of AUD/USD
The price of the Australian dollar has stabilized after the recent decline and is now consolidating above 0.7075. In case of breaking through this level, and the lower limit of the local rising channel, the fall of price will continue to 0.6840 and 0.6800. It is worth noting that now there is an opportunity to open long positions with a stop below 0.7050 and with the immediate target levels at 0.7180 and 0.7350. Tomorrow is expected the increase of volatility. Our medium-term forecast remains negative, but we do not exclude the continuation of growth in the near future.
Forex and CFD
01.02.2016 - Technical view
Currencies trading and euro. The price of EUR/USD has shown a strong decline and approached to an important support level at 1.0800 and currently is corrected upwards. In order to continue negative dynamics with the first targets at 1.0700 and 1.0550, quotations need to fix below the level of 1.0800. Growth of price in the near future is limited by a strong resistance level at 1.0985. Our medium-term outlook remains negative, but today we can see a continuation of the correction.
Nearest resistance levels: 1.0900, 1.0985, 1.1050, 1.1080, 1.1200, 1.1350, 1.1450
Nearest support levels: 1.0800, 1.0700, 1.0550, 1.0500, 1.0450, 1.0200
Currencies trading and British pound. The price of GBP/USD has shown a sharp decline,...
01.02.2016 - The decision of the Bank of Japan has led to the strengthening of the US dollar against the yen
Currency trading and the euro. The price of euro fell on Friday amid a stronger US dollar, which was caused by the unexpected decision of the Bank of Japan on monetary policy. Thus, the Japanese regulator decided to reduce interest rates from the the level of 0.10% to -0.10%. As a result, demand for dollar assets rose due to a sharp fall in the price of the yen. It is worth noting that on Friday was published data on US GDP growth in Q4, according to which the country's economy in the last three months of 2015 grew by only 0.7%, which is 0.1% worse than forecast and significantly worse than growth by 2,0% in the 3rd quarter. This fact reduces the chance of the Fed raising interest rates in March, but the outlook for the US economy remain positive. Today, the dynamics of trading will affect data on the manufacturing PMI in the Eurozone (09:00 GMT) and the US (15:00 GMT), as well as statistics on personal income and consumer...
01.02.2016 - Strong statistics supported the British pound
Today was published an unexpectedly strong manufacturing PMI statistics in the UK, which in January showed an increase to 52.9, against 51.9 previously. Analysts had forecasted a decline to 51.8. It is worth noting that these news supported the British pound which is influenced by the recent statements of the Bank of England that has led to the expectation of rising interest rates not earlier that in Q4 2016. At the same time, the question of holding a referendum on the country's exit from the European Union must be held before the end of 2017 and experts estimate that it may take place in autumn. Our medium-term outlook remains negative and we recommend to use the growth of the British currency to accumulate short positions with the potential of reduction to 1.4000 and 1.3600.