London Forex Report: Data Disappointment Drags Dollar Down

EURUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental: EUR reached a high of 1.1489 this morning (as of writing) due to bad data from the US economy, having lower growth and inflation, causing dollar to weaken. While US data were disappointing, Euro area data was also lacklustre, where notably that labour conditions tightened across all districts and wage growth was depressed except for skilled work.

Technical: price is pressuring 1.15 offers, while 1.1440/60 supports intraday downside reaction bulls now targets 1.1740 as the next upside objective.

Interbank Flows: Bids 1.1430/50 stops below. Offers 1.1520 Stops above.
Retail Sentiment: Bearish
Trading Take-away: Stay long for 1.1740

eu2015-10-15 07_41_43-NetDania - NetStation

GBPUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental:  GBP rose almost 200 pips since yesterday, reaching a 3-week high of
1.5494 due to the good looking employment data, in which the unemployment rate of 5.4% is the lowest in seven years. The boost of unemployment data for the pair is putting the market back on the idea of a possible rate hike.

Technical: The sustained move over 1.53 targets retested of 1.54 en route to 1.55 as suggested. While 1.5380 supports downside reactions expect a grind higher to test 1.56 symmetry objective

Interbank Flows: Bids 1.54 stops below. Offers 1.5520 stops above
Retail Sentiment: Bearish
Trading Take-away: Buy pullback against 1.5380 targeting 1.56

gu2015-10-15 07_42_41-NetDania - NetStation

USDJPY
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental: USDJPY dropped to new weekly lows due to worse than expected US Advanced Retail sales. Due to the increased risk off sentiment, USDJPY tested an intraday low of 118.62. Japan Consumer Confidence Index was announced as 40.6, worse than market expectations. This may reflect the economy of Japan is still under pressure , granting the reason for BoJ to execute further easing measures.

Technical: Testing the lower end of the extend range while bids at 118.50 expect rotation back into range, a failure at 116.50 emboldens bearish spirits and targets 116 next.

Interbank Flows: Bids 118.50/30 stops below. Offers 121.50 stops above
Retail Sentiment: Bullish
Trading Take-away: Sidelines for now

uj2015-10-15 07_43_19-NetDania - NetStation

EURJPY
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental: Weighed yesterday by softer equities, but still holding in upper end of recent range due to positive EUR cross flows.

Technical:  The close above 136 opens a retest of upper end of the recent range and a retest of offers at 137 next. Remain bullish while 135.80/136 supports intraday downside reactions.

Interbank Flows: Bids 135.80 stops below. Offers 137 stops above
Retail Sentiment: Bearish
Trading Take-away: Sidelines for now

ey2015-10-15 07_43_52-NetDania - NetStation

AUDUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental: The AUD  reversed all of its Tuesday’s loss against the US dollar on
weaker-than-expected data from the two largest economies. Both China’s CPI and US retail sales figures undershot expectations, sparking bets of delay in Fed rate hike. Coupled with a dip in global equities, the demand for US dollar eased. AUDUSD had pushed up to a high of 0.7343 just prior to the release of the September jobs report but pulls back after Aussie jobs miss.

Technical: The snap back breach of .7300 targets a retest of .7400 offers. Another breach of .7300 against overnight highs targets .7160 equality corrective objective.

Interbank Flows: Bids .7200 stops below. Offers .7400 stops above
Retail Sentiment: Bearish
Trading Take-away: Buy pullbacks to .7160 targeting a retest and break of .7400

au2015-10-15 08_10_04-NetDania - NetStation

USDCAD
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bullish

Fundamental: CAD  strengthened against the USD due to disappointing US economic figures and worries about a slowdown in the Chinese economy. A pause in oil’s decline gave the Canadian dollar some break. Crude oil settled down 2 cents at $46.64 a barrel

Technical: Near term bearish tend remains intact as intraday resistance at 1.3060 contains intraday upside reactions bears target 1.2850 bids as the next downside objective. A breach of 1.3080 opens test of 1.3130/50 offers next.

Interbank Flows: Bids 1.2850 stops below. Offers 1.3060 stops above
Retail Sentiment: Bullish
Trading Take-away: Sidelines for now

uc2015-10-15 08_11_28-NetDania - NetStation