Thread: FBS Holdings Inc - Get 25% Bonus To Your Deposit! - Minimal deposit starting at 5 USD

Weekly USD/JPY

The bulls keep actively buying US dollar versus Japanese yen. The rate has already broken up through Tenkan-sen (3). If the prices consolidate above this level the pair USD/JPY may survive further rebound to the Standard line (4).

Never the less, the bears aren’t likely to give up their positions. The global bearish sentiment of the market will make the rate bounce downwards and only after this the greenback may resume rebounding.



Chart. Weekly USD/JPY



Daily USD/JPY

On the daily chart the prices got inside the Cloud as they almost instantly broke through its bottom. The strong “golden cross” (5) formed by Tenkan-sen and Kijun-sen was pushing the rate since the beginning of the week – the pair didn’t return to the Turning lien as it was expected.

The rapid rebound of US dollar let the rate break the Chinkou Span through the body of a black candle. In addition, Senkou Span A also kept narrowing the Kumo range.

So, the market’s aiming to show further growth. It’s possible to expect that USD/JPY will overcome the upper border of the Cloud this week. Before that, however, the market may sag a bit as Tenkan and Kijun are directed sideways (3, 4).



Chart. Daily USD/JPY

Weekly USD/CHF

The greenback keeps rebounding versus Swiss franc as well. During the past week the prices managed to break through the Turning line (3) into Tenkan-Kijun channel (3, 4).

The situation, however, didn’t change much – almost all the lines remained in the same positions as a week ago: Tenkan (3) and Senkou Span A (1) are directed downwards, while Kijun-sen (4) and Senkou Span B (2) are horizontal. That means that the main trend at the market is bearish.



Chart. Weekly USD/CHF

Daily USD/CHF

On the daily chart the situation may change any time as the prices approached the upper border of the weekly Ichimoku Cloud.

Before that the prices have rapidly broken through the Senkou Span A. Tenkan-sen and Kijun-sen have formed again the “golden cross” (5) and also headed upwards. That means that the short-term trend’s strongly bullish.

In addition, Senkou Span A (1) keeps narrowing the Kumo range that’s also positively influencing the sentiment of the market’s players.

This week the prices may be found outside the Cloud, above Senkou Span B.



Chart. Daily USD/CHF

The single currency rose today to one-week maximum versus the greenback as the European Union finance ministers announced that a capital fund will be established to rescue Irish banks.

As a result Ireland’s going to be the second country getting bailout the EU and the IMF. The European Central Bank yesterday expressed confidence that the support of the European monetary authorities will help Ireland to restore stability of its banking system.

According to Irish Prime Minister Brian Cowen, the negotiations on the financial aid package will be completed in the next few weeks. Finance Minister Brian Lenihan estimates the loan to be less than 100 billion euro ($137 billion).

Strategists at ANZ National Bank Ltd. note that Ireland’s deal will bring relief to markets only in the near-term, while it will soon become clear that the euro area’s problems won’t be solved quickly.



Chart. H1 EUR/USD

Technical analysts at Commerzbank claim that the single currency is moving up versus the greenback towards 200-day MA at 1.3798. In their view this level and the 4-month resistance line at 1.3812 will be strong enough to hold the initial attempt the bulls to get higher.

As for the longer term, the dynamics of the EUR/CHF rate is regarded as a large inverse head and shoulders pattern. If euro closes above 1.3812, it will be able to climb to 1.4000 pivot and beyond.



Chart. Daily EUR/CHF

Technical analysts at Commerzbank regard the current advance of the single currency from the minimums in 1.3445/55 area hit last week as a correction reaction to the longer-term downtrend.

According to the specialists, euro’s growth will continue above 1.3775 to cap at 1.3865/1.3965 levels representing 50% and 61.8% Fibonacci retracement of the recent decline. Then the pair EUR/USD is likely to reverse slipping to 1.3365/35 (38.2% Fibonacci retracement and the August peak) and then to 1.3139 (200-day MA).



Chart. H4 EUR/USD

Strategists at Barclays Capital claim that despite the fact that Ireland formally applied for an EU/IMF bailout the contagion risk for the other peripheral European nations didn’t decrease – Portugal’s yield spread with Germany mimics the pattern of Spanish spreads.

The same opinion is shared by the specialists at Danske Bank. In their view, any rebound in the single currency will be less than its advance after the Greek bailout.

Analysts at RBC Capital Markets believe that the program of financial help for Ireland may raise the risk of social unrest as the loan will be granted on the conditions of policy tightening. Most of concerns are connected with the risk that some European governments may force Ireland to increase its 12.5% corporate tax rate.

Economists at UBS AG are bearish on euro and note that it’s going to take years for the fiscal issues of certain euro zone countries to be resolved. According to them, the pair EUR/USD will trade $1.25 by the end of January.



Chart. H4 EUR/USD

Currency strategists at BNP Paribas advise investors to buy British pounds versus the greenback. According to them, the potential Irish bailout seems to be quite positive for UK banking sector.

The specialist note that the pair GBP/USD has broken through the key resistance at 1.6030. Sterling may climb to 1.6120 and possibly to 1.63, claims BNP.



Chart. H4 GBP/USD

Technical analysts at Mizuho Corporate Bank claim that a small gap higher above the top of the daily Ichimoku Cloud means that the pair EUR/JPY has strength to break above the broad range within which it was trading since May.

The specialists note that if the single currency manages to hold above the moving averages or close the week above 115.00 bullish momentum will increase letting euro overcome 116.25 level completing a large “broadening bottom” pattern.

According to Mizuho, it’s necessary to buy at 114.80 stopping below 113.20. First target is at 115.50, then 116.60.



Chart. Daily EUR/JPY

Hello Everyone!

Good morning from the entire FBS Team

:)

Dear traders!

I would also like to answer to your questions and listen to your feedback about FBS. Please feel free to ask questions and post your experiences with FBS.

Thank you:)