2-1 Economic Calendar
Aud AIG manufacturing index came out better at 51.0
Aud AIG manufacturing index came out better at 51.0 from previous at 48.5.
Aud MI Inflation Gauge m/m is coming at 6:30pm previous 0.3%
Eur/Usd continues to makes new lows for the year.
Eur/Usd made a new at 1.3852 from Friday’s low of 1.3863. Eur/Usd started to free fall after the better then expected GDP number out of U.S. from a high of 1.3970 to a low 1.3863. Which also drag down the Eur/Jpy to a new low of 125.10 with Usd/Jpy trading around 90.30 area. Over the weekend Usd/Jpy made a new low of 89.87 which again push the Eur/Jpy to a new low for the year traded at 124.59. Right now Eur/Jpy is trading at 125.00, Eur/Usd trading at 1.3860 and Usd/Jpy trading at 90.10.
Here you see the Eur/Usd make the new low this Sunday afternoon.
Usd/Jpy had a small gap open and was quickly filled after the market opened, from Friday’s close of 90.24 to 89.97.
Eur/Jpy had the same reaction as the Usd/Jpy with a gap open at 124.59 and quickly filled that gap back to 125.11 on Friday’s close.
Now the question is this an another major signal where Eur/Usd has reversed its trend and going to start trying to retest the lows.
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FXDD Weekend Economic Releases and Events for Feb 1 to Feb 5
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EURUSD may have seen the bottom. 200 week MA and channel trendline tested at the lows
A reader of our blog informed me that the EURUSD tested the 200 week moving average at the 1.3857 level. The low for the day reached 1.3862 and the channel trendline we have been following came in at 1.3860.
As a result, the low may be in place for the day. Look for buyers on dips now, with stops below the 1.3858 level.
Forex Midday Report – Jan 29th
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EURCHF has also soared higher, but reaction is still muted.
The EURCHF has also soared higher moving above the 100 and 200 hour MAs at the 1.4709/18 levels. Look for support against these levels now. A move below 1.4698 would not be welcomed.
Looking at the longer term chart,the price reached a low at 1.4631 today. If you recall the 1.5000 level was the old floor the SNB had said was the point of tolerance. Then comments from officials opened the window for an orderly decline in the pair as global growth started to increase.
Now it seems a new floor may be in place for the pair (1.4600 area) or so it seems.
Putting the action in perspective however, shows that the reaction, although sudden is still fairly muted. Comparing the move higher to other intervention effforts makes this move look like a blip on the chart. The market may be rationalizing that the move is on month end, it was also done by the BIS on behalf of another central bank who may be taking a profit at month end, not the Swiss National Bank, and as a result it may be just a technical move. We will see. It certainly did add some excitement to the early Friday afternoon.
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