1. 4th Dec’14 Currency Highlights
USDINR
Technical Outlook:
In Yesterday trading session USDINR
prices traded in narrow range from 62.26
to 62.16 levels.
On 30 minute chart MACD indicator has
given crossover signal which is positive
confirmation for UDSINR.
The momentum indicator, RSI is near 50
levels, and forming positive divergence.
On 30 minute timeframe the prices have
taken support near 78.6% retracement
levels which would suggest prices could
now move higher levels.
Fundamental News:
The U.S. dollar rose to fresh seven-year highs against the yen, even after the release of disappointing private sector employment data from the U.S., as the diverging policy outlook between the Federal Reserve and the Bank of Japan continued to weigh on the yen.
USD/JPY hit 119.48 during early U.S. trade, the pair's highest since August 2007; the pair subsequently consolidated at 119.42, edging up 0.14%.
The pair was likely to find support at 118.20, Tuesday's low and resistance at 119.85.
Payroll processor ADP reported on Wednesday that the U.S. private sector created 208,000 jobs in November, falling short of expectations for jobs growth of 223,000 and down from 233,000 in October.
Buy above: 62.25
Sell below: 62.45 Economic Indicators Date Time Data Prior Expected Impact
04.12.14
12.30 AM Beige Book
More hawkish than expected = Good for currency
04.12.14
12.30 AM FOMC Member Brainard Speaks
More hawkish than expected = Good for currency
2. 4th Dec’14 Currency Highlights
EURINR
Technical Outlook:
EURINR prices given gap down opening
and drifted lower and given close near
days low.
MACD remained below zero levels on
daily as well as on 30 minute timeframe
which gives negative confirmation for
prices.
The momentum indicator, RSI on daily
as well as on 30 minute timeframe is
below 40 levels which indicate lack of
momentum in price.
Fundamental News:
The euro fell to two year lows against the dollar on Wednesday, as investors looked ahead to the outcome of Thursday’s European Central Bank meeting amid heightened expectations for additional stimulus measures. EUR/USD touched lows of 1.2323, the weakest since August 2012 and was last down 0.37% to 1.2338. Surveys of business activity across the euro zone on Wednesday indicated that the region would post only marginal economic growth in the fourth quarter.
Buy above:76.76
Sell below:76.65 Economic Indicators Date Time Data Prior Expected Impact
04.12.14
2.40 PM
Retail PMI
47.0
Actual > Forecast = Good for currency
04.12.14
2.40 PM
Spanish 10-y Bond Auction
2.12|3.0
04.12.14
2.40 PM French 10-y Bond Auction
1.18|1.4
3. 4th Dec’14 Currency Highlights
GBPINR
Technical Outlook:
GBPINR prices given gap down opening
and moved lower but failed to sustain
lower levels and closed on flat node.
On daily timeframe, prices have formed
Dragonfly doji which means indecision
in prices action.
As can be observed from the chart,
prices gave close above 21 EMA which
gives positive confirmation for prices.
For the day we expect up move as RSI
has again moved above 40 levels.
Fundamental News:
The pound held steady against the U.S. dollar on Wednesday, after the release of upbeat U.K. service sector activity data, as investors remained cautious ahead of the U.K. Treasury's Autumn Forecast Statement due later in the day.
GBP/USD hit 1.5669 during European morning trade, the session high; the pair subsequently consolidated at 1.5642, up only 0.04%..
Cable was likely to find support at 1.5585, the low of December 1 and a 14-month low and resistance at 1.5765, the high of December 1.
Buy above: 97.45
Sell below: 97.80 Economic Indicators Date Time Data Prior Expected Impact
04.12.14
7.00 AM
Halifax HPI m/m
-0.4%
0.2%
Actual > Forecast = Good for currency
4. 4th Dec’14 Currency Highlights
JPYINR
Technical Outlook:
JPYINR prices gave gap down opening
and drifted lower, and given close near
days low.
Currently prices are trading near the
downtrend line which suggests a break
above the mentioned trend line could
take prices higher while failure to
breach the trend line would keep prices
under pressure.
For the day we expect that the hike can
be used as selling opportunities as the
RSI remained below 30 levels on 30
minute timeframe showing weakness.
Fundamental News:
The yen has been losing value at a more rapid pace against the dollar since the Bank of Japan launched its latest round of quantitative easing a month ago, and was trading at more than Y119 to the greenback this morning
Monetary easing, the first arrow of Abenomics, has always been the most efficacious in Tokyo’s quiver. But its purpose is only partly about the central bank’s oft-voiced commitment to driving inflation up and ending a deflationary mindset, a mindset that politicians insist is responsible for weak consumption and weak capital expenditure. That first arrow is in fact all about driving down the yen and stimulating exports. Everything else is more needles than arrows
Buy above: 52.24
Sell below:52.09 Economic Indicators Date Time Data Prior Expected Impact
04.12.14
No Data For JPY Today
6. 4th Dec’14 Currency Highlights
Disclaimer
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