The EUR/USD pair bounced from its support on a 30 minute time frame. This support zone was given in our analysis on Friday. The price has also broken the downward trend line to the upside however, since then it is lacking a further upward momentum. The pair is also trading above the 50 day (shown in green) but below the 100 day (shown in yellow) moving averages which confirms that the bulls are taking the control.
Nikkei off from its six weeks Low due to stimulating growth policy
European stock markets are trading higher during the early hours of trading. Investors have congregated their momentum from the Asian trading session where all of the indices closed up for another day. The Nikkei index which closed strongly lower yesterday toward its six weeks low also bounced strongly on the back of the news that the Japanese prime minister is finally getting his act together and introduced another growth stimulus policy. Mr Abe Shinzo confirmed today that he may consider reducing the corporate tax in the country which has pushed the Nikkei index well off from its six weeks low.
The EU region will release key data this week which could tell us more about its health. On Tuesday CPI for UK and German Zew will take place, which is followed by MPC votes meeting, rate decision and unemployment rate. German Zew Economic Sentiment, CPI for Euro on Tuesday. The UK’s claimant count, MPC rate and votes and Euro area’s GDP will grab investors’ attention on Wednesday. Finally, retail sales number for GBP is due on Thursday.
The USD/JPY pair has broken its downward channel to the upside on a 30 minute time frame. However, since then the price has failed to continue it momentum and it is moving in a sideway pattern. The pair is trading above the trading above the 50 day (shown in green) and the 100day (shown in yellow) moving averages which means that the bulls are in control. The volatility for the pair is low as the price is trading with the Bollinger band and it is close to its 20 day moving averages.
The EUR/USD pair fell from its resistance on a 30 minute time frame. This zone was given in our analysis on Friday. The price is trading below the downward trend line which means that the upward trend is becoming weaker. Moreover, the price is also trading below the 50 day (shown in green) and the 100 day (shown in yellow) moving averages which confirms that the bulls are losing their control.
US losing steam, BOJ not stepping off from gas, Europe’s GDP data and Greece debt relief payment in focus
Europe up despite US losing steam
European stock markets are trading higher on the first trading day of the week and this is despite the fact that the US markets may be losing their steam. The US markets shuddered their winning streak last week when the indices closed in a negative territory for the first time during the past 6 weeks. This could be down to the fact that the investors are apprehensive about the Fed’s tapering program and the uncertainty about the timing of this tapering. Given the string of a positive economic data, it may be safe to say that there is little hope of Fed’s keep their taps running of their ultra loose monetary policy.
Asian markets closed higher on the final trading of the week. The economic data released in China showed that the country’s economic growth may be picking up once again. July’s consumer price data released today came in at 2.7% which was in line with the June’s reading but slightly weaker than expectations.
The EUR/USD pair is trading in its resistance zone on a 30 minute time frame. This is a major resistance zone because the price is visiting this level for the first time and this upward trend could pause or reverse its direction. The pair is trading above the upward trend line and has not broken this trend line which represents the strength of this upward trend. Moreover, the price is also trading above the 50 day (shown in green) and the 100 day (shown in yellow) moving averages which confirms that the bulls are losing their control.
The EUR/USD pair is trading in an upward channel on a 30 minute time frame. The price could be more biased toward the upside because it has been challenging the minor resistance (mentioned below) more as compared to the support zone. However, , the price is also trading below the 50 day (shown in green) and the 100 day (shown in yellow) moving averages which confirms that the bulls are losing their control.
The GBP/USD pair fell from its resistance on a 30 minute time. This resistance zone was given in our analysis yesterday. However, this resistance zone my no longer hold if the price visits this specific zone again as the price has already visited this level for 3 times. Generally speaking, the fresh levels are the best levels and there is more probability of price changing its direction when it visit that specific level.