Daily market analysis and financial news by Vesta Trader

[Vesta trader]

The US dollar traded higher against the Japanese yen during this past week, and managed to break the 104.00 resistance area. The pair has opened with a small gap up during this week, and climbed as high as 104.26. However, the upside looks like extended in the short term, and there is a possibility of a minor correction as the function of foreign exchange market suggests. The best forex strategy ever is to wait for the right time and right levels to enter into the market. So, if the pair falls a bit lower from the current levels, then one might consider buying in the near term.

Technically, there is an expanding triangle formed on the hourly chart for the USDJPY pair, which recently acted as a resistance earlier during the Asian session. The pair is currently trading lower, and it is possible that it might trade towards the 50% fib retracement level of the last leg higher from the 103.49 low to 104.26 high. So, the 103.85-75 levels might act as a strong support for the pair, and buyers are likely to appear around the mentioned support area. There is a minor divergence on the hourly RSI as well, which might take the pair a bit lower from the current levels.

USDJPY 08.25.2014

On the upside, initial resistance can be seen around the last swing high of 104.26. Any further strength might take the pair towards the 104.50 resistance area. On the downside, the 103.85-75 levels remain a nice support area.

 

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US Dollar Likely To Trade Higher Against Swiss Franc

The US dollar opened with a small gap higher against the Swiss franc this week. The US dollar sellers yesterday tried to close the opening week gap, and as a result the USDCHF pair traded a touch lower. The pair traded as low as 0.9141, which acted as a support for the pair. However, the pair is struggling to find traction, which means there is a chance of a push lower in the short term. The US durable goods orders data and the CB consumer confidence data will be released later during the NY session, which might act as a catalyst for the pair.

Technically, there is an important bullish trend line on the hourly chart of the USDCHF pair. The mentioned trend line is just above the 100 hourly moving average, which increases the importance of the bullish trend line. Moreover, it also coincides with the 50% fib retracement level of the last move higher from the 0.9105 low to 0.9178 high. So, if the pair dips from the current levels, then there is a possibility that it might find buyers around the 0.9140-30 support area. Only a break below the 100 hourly moving average might cause a major correction in the pair.

USDCHF 08.26.2014

On the upside, initial resistance can be seen around the 0.9160 level, followed by the recent high of 0.9178. Any further strength might take the pair towards the next major hurdle around the 0.9200 handle, according to simple forex strategy.

 

[Vesta trader]

Euro Might Break Higher Against New Zealand Dollar

The Euro has struggled recently against most major currencies, but managed to hold the ground against the New Zealand dollar. The main reason for this is the weakness of the New Zealand dollar. The recent economic data came on the negative side, and increased bearish pressure on the currency buyers according to the Forex trading coaches. One of the examples is the New Zealand trade balance data which was released earlier during the Asian session. The report published mentions that the New Zealand trade balance registered a trade deficit of 692M, more than the Forex market expected. The EURNZD pair was seen trading a touch higher after the release.

Technically, there is an important bullish trend line on the 4 hour chart of the EURNZD pair. The mentioned trend line was responsible for holding the downside in the pair recently. Moreover, there is a bearish trend line, which is acting as a hurdle for the pair on the upside. There is a possibility that the pair might dip from the current levels. If that happens, then it could find support around the 100 moving average, which is sitting just above the 50% fib retracement level of the last move higher from the 1.5708 low to 1.5863 high. It is around this level the Euro buyers might reappear to take the pair higher again.

EURNZD 08.26.2014

On the upside, initial resistance can be seen around the last high of 1.5863 i.e. around the bearish trend line. If the pair breaks the highlighted trend line then a move towards the 1.5900 resistance level is possible.

 

[Vesta trader]

EURUSD Struggling To Close Opening Week Gap

The Euro was hammered recently against the US dollar, as the EURUSD pair traded below the 1.3200 support area. Moreover, the pair opened with a gap lower this week, and has struggled to close the gap. Earlier during the Asian session, the pair traded lower and created a new monthly low, according to forex profit system. It is likely that the pair might continue trading lower, but a short-term correction cannot be denied from the current levels. The German GFK consumer climate was published during the London session, which missed the expectation and registered a reading of 8.6, down from 8.9.

Technically, there was an important bearish trend line on the hourly chart of the EURUSD pair, which the pair is trying to break as of writing. Currently, it is testing the 23.6% fib retracement level of the last drop from the 1.3295 high to 1.3151 low. So, if the pair manages to settle above the mentioned trend line and resistance area, then a move towards the open gap is possible. So, the 1.3220-30 area can be considered as a selling zone according to free forex signals online, as the 50% fib retracement level and 100 hourly moving average sit around the same level.

EURUSD 08.26.2014

On the downside, initial support can be seen around the last low of 1.3151. Any further losses can take the pair towards the 1.3120 support area where buyers might reappear. Overall, selling rallies with caution in the short term can be a good option.

 

[Vesta trader]

Amazon To Get A Boost Post Twitch Deal

Amazon, one of the international electronic commerce giants recently purchased a company knows as Twitch. Not many people are aware of this company, but I think most game lovers might be aware of it. This company is better known as Twitch.tv, and is an online video streaming service which streams video games. So, one can watch a person playing a video game on the company’s website. It has recently gained a lot of popularity.

Initially, there were rumors that the online search giant Google was going to buy Twitch. Later on, there was a news suggesting that both Amazon and Google are in the race of buying the video streaming company. Finally, it was announced recently that the Twitch was bought by Amazon for $970 million. One must be thinking that Amazon was crazy putting in so much money for a developing website. However, if we go by the Bloomberg survey then this sector is going to get a lot of boost in the coming years. So, considering that fact, Amazon might have done a right thing. This might lift the investors’ confidence in the medium term.

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Technically, Amazon.com Inc. (AMZN) traded in a range. On the upside, resistance is around the $345 level, and on the downside support is around the $335 level. So, one can consider buying around the mentioned support keeping short term objectives in mind or holding it for a bit longer in the medium term.

 

[Vesta trader]

Simple Forex Strategy – Aussie Likely To Trade Lower

The Australian dollar has shown a lot of resiliency against the US dollar compared to any other major currencies. The AUDUSD pair recently traded above the 0.9360 level, but failed to break the 0.9370-80 resistance level, which means there is a chance that the pair might continue trading lower in the short term if we consider simple forex strategy. The pair earlier during the Asian session broke an important support area, which might encourage the Australian dollar sellers in the short term as per price action forex trading.

Technically, there was an important bullish trend line on the hourly chart of the AUDUSD pair, which the pair broke during the Asian session. However, the pair is trying to turn higher again and retesting the broken trend line as of writing. If the pair fails to trade higher, then there is a high probability of it trading lower in the short term. On the downside, initial support can be seen around the 100 hourly moving average, which also coincides with the 50% fib retracement level of the last move higher from the 0.9270 low to 0.9373 high. Any further losses might call for a test of the 200 hourly moving average.

AUDUSD 08.29.2014

On the other hand, there is also a chance that the recent break might turn out to be a false one. In that situation, it would be interesting to see if the pair could manage to break the last high of 0.9373 or not.

 

[Vesta trader]

Can US Dollar Provide One More Buying Opportunity?

The US dollar was seen trading higher against a few major currencies, including the Swiss franc. The USDCHF pair about an hour ago challenged the 0.9200 resistance area, but failed to gain momentum above the mentioned level. Yesterday, was a holiday in the US which caused mostly ranging moves in the US dollar, but earlier during the Asian session it again found buyers and as a result the USDCHF pair traded higher. There is a very important economic release scheduled later during the London session. The Swiss GDP data will be published, which might impact the USDCHF pair in the short term.

Technically, there is an important bullish trend line on the hourly chart of the USDCHF pair, which holds a lot of importance as it coincides with two very significant hourly simple moving averages i.e. 100 and 200. Currently, the pair is flirting with the 1.236 extension of the last drop from the 0.9184 high to 0.9125 low. So, there is a chance of a move lower in the pair towards the 0.9170-60 support area. In that situation, it can be seen as a buying opportunity. However, there is no sign of a correction from the indicators such as RSI and MACD.

USDCHF 09.02.2014

Overall, as long as the pair is trading above the highlighted bullish trend line, then buying retraces look like a wise option. Remember, the 100 hourly moving average is also an important pivot zone for the pair.

 

[Vesta trader]

Apple Introducing Payment System?

Apple, one of the tech giants is in the news for many reasons these days. The most talking points as of now are iPhone6 and iWatch. The tech giant is rumored to launch these two devices during the second week of September, precisely on September 9th, 2014. The company’s stock AAPL (CFD) is trading higher from the last few days, and recently broke the 100.00 level. Both these devices are highly anticipated and many investors are waiting patiently for the launch of these two devices. We need to see how the devices shape up and impact the company’s stock in the near term.

There is one more rumor which is circulating these days, and the rumor is that the company is also expected to introduce a new payment system on September 9th, 2014. It will be a new mobile feature that the company will introduce along with the iPhone 6. So, there will be something new in the device, which can make life easy for many people looking for simple and solid payment systems. Let’s see whether the rumor is true or not in the coming days.

appleTechnically, company’s stock AAPL (CFD) trade above the 100.00 level recently, and currently trading around the 102.50 level. There is a very solid trend line and support forming around the 100.00-98.00 levels, which I think might act as a swing zone in the near term. So, if the prices dip a bit from the current levels, then the mentioned levels can be considered as a buy zone.

 

[Vesta trader]

Euro Making An Attempt To Push Higher?

The Euro consolidated briefly against the US dollar yesterday, and managed to sustain more losses despite solid US ISM manufacturing PMI, which was released yesterday. Today, during the London session, the Euro zone services PMI was released. The forecast was slated for no change from 53.5. However, the outcome was a touch disappointing, as the Euro zone services PMI fell to 53.1. This stalled the correction in the EURUSD pair, according to the Forex profit system. There is no major market moving event scheduled in the US today. So, there is a chance of a short term recovery in the EURUSD pair.

Technically, there was an important bearish trend line on the hourly chart of the EURUSD pair, which was broken earlier during the London session. However, after the disappointing services PMI data the pair failed to gain any momentum. As of writing, the pair is again trading around the broken trend line, and the Euro buyers are fighting to keep the pair above the same. If the pair manages to bounce from the current levels, then it might move towards the 50% fib retracement level of the last drop from the 1.3219 high to 1.3109 low. Any further gains could take the pair towards the 200 hourly moving average.

EURUSD 09.03.2014

Alternatively, if the pair fails to sustain the broken trend line, then the 1.3120 support level might come into play. A break lower could take the pair towards the 1.3109 low.

 

[Vesta trader]

Aussie Resilient As US Dollar Outperforms

The US dollar surged higher against most major currencies yesterday, including the Euro, the British pound, the Swiss franc and the Japanese yen. The currency which showed a lot of resiliency against the US dollar was the Australian dollar signalling the best forex strategy for consistent profits. The worst performer was the Euro, as it blasted lower after the ECB decided to cut rates from 0.15% to 0.05%. The Euro moved more than 250 lower against the US dollar yesterday. The AUDUSD pair showed a lot of resiliency yesterday despite positive news releases in the US. The pair is likely to continue trading higher, according to the forex correlation strategy.

Technically, there was a bearish trend line, which held the upside in the pair. However, there is one most important thing to note from the charts is that the pair is likely forming a breakout pattern i.e. the inverse head and shoulders pattern as can be seen below. The neckline is around the last swing high of 0.9390. So, if the pair manages to break the mentioned level, then it could open the doors for further upside acceleration towards the 0.9500 level.

AUDUSD 09.05.2014

Alternatively, if the pair fails to break higher, then on the downside support is around the 100 hourly moving average, which is currently around the 0.9325 level. Any further loses should be limited as the 200 hourly moving average also sits around the same area. The RSI is also above the 50 mark, which is a positive sign.