New York Forex Report: Buck Better Bid

New York Forex Report: Buck Better Bid

New York Forex Report: With no tier one data out of the European session we have seen a broad continuation of the overnight action, USD Index has stabilised overnight and currently trades up 0.3% during the European session. Cable continues to trade with a an offered tone retesting one month lows as buyers step in on the dip once again. Euro volatility pricing remain near long term lows indicative of the lack of meaningful participation as we continue to rotate in ranges contained by slower summer trade. Looking ahead we get jobs data early in the US session combined with import/export prices.

FX Majors: EUR extended its gains from Mondays rebound, surging to its current level of 1.1188, just below the 1.1200 handle, this despite the domestic macroeconomic calendar was empty in Europe yesterday GBP has been suffering from the Bank of England’s aggressive moves to ease monetary policy and a volley of promises from policymakers that more easing may follow. GBPUSD consolidated at 1.3020s on Wednesday while the pair has dropped almost 2.7% since 3 August. JPY Japan’s tertiary industry index rose more than expected in June. Services sector expanded 0.8% MOM in June followed a 1.2% MOM decline in May, led by growth in the wholesale trade and living/ amusement related categories.

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

Technical: While 1.1040 supports there is potential for a near term base to target 1.1330. Failure below 1.1030 opens 1.0950 on the downside.Near term support is sited at 1.11
Retail Sentiment: Bullish
Trading Take-away: Long

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

Technical: 1.2950 equidistant swing objective achieved and attracts anticipated profit taking. 1.31 the immediate upside hurdle ahead of pivotal 1.3160. As 1.31 caps corrective expect retest of this weeks lows.
Retail Sentiment: Bullish
Trading Take-away: Short

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

Technical: The close below 103 will see bears target a retest of cycle lows below 100. Near term resistance is sited at 102.80, over 102.90 targets 103.50 next.
Retail Sentiment: Bullish
Trading Take-away: Short

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

Technical: The breach of 113 opens 110.80 as the next downside objective. Near term resistance is sited at 113.90 rejects on first test, while 112.80 supports potential to test pivotal 114.20.
Retail Sentiment: Bullish
Trading Take-away: Short

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Commodities FX: GOLD gained for a second day on the weaker dollar, higher by 0.43% to $1,346.61 an ounce. Oil futures dropped 2.48% to close $41.71 a barrel after data showed Saudi Arabia pumping oil at record high volumes in July, possibly worsening the global crude glut. AUD lifted more than 2% since the Reserve Bank of Australia’s move on 2 August and recorded a fourth straight day of gain to stay above 0.7700 level. The Reserve Bank of Australia trimmed its rate by a quarter point to 1.5% last week, but sounded in no hurry to ease further supporting the currency. CAD strengthened to a three-week high against its broadly weaker US dollar, although gains were pared as crude oil fell.

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

Technical: The close over .77 shifts attention to broader range resistance sited at .7830, near term support is now sited at .7640.
Retail Sentiment: Bearish
Trading Take-away: Long

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

Technical: Bearish reversal of the post payrolls bullish reversal ahead of 1.2973 symmetry swing support suggests we likely see the test of 1.2973. Failure below 1.2940 opens 1.2860 as the next downside objective.
Retail Sentiment: Bullish
Trading Take-away: Short

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

Technical: Bulls target 1391 as the next upside objective, near term support is sited at 1330. Below 1300 opens 1270.
Retail Sentiment: Neutral
Trading Take-away: Neutral

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

Technical: Symmetry swing resistance sited at 43.28/96 stalled the corrective advance as anticipated with bears now targeting the pivotal 38.19, near term supported is sited at prior lows, a close over 44.40 is required to ease bearish pressure.
Retail Sentiment: Bullish
Trading Take-away: Short

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