Archive for September, 2014

EUR/USD
The EUR/USD pair initially tried to rally during the week, but as you can see ended up falling and slicing through the 1.28 level like it wasn’t even there. Because of this, we believe that the euro continues to offer selling opportunities on rallies, but at this point in time we think that the market is probably aiming for the 1.25 handle. EUR-USDBe aware though, this is a market that is certainly oversold by any stretch of imagination and a snapback rally could happen at any point. Ultimately though, we have no plans on buying.
Forecast
What we see, the 1.25 level is probably the next target, binds longer-term charts suggests that we could go even lower than they are. Any bounce at this point time has to be treated with suspicion, and sold at the first signs of resistance as the market certainly has made up its mind.
AUD/USD
The AUD/USD pair fell directly at the open of the week in just continued lower. We managed to break down below the 0.88 level, which of course is a very negative sign. We believe that the 0.87 level below is supportive though, so we figure that the market isn’t going to be able to break down too much from here, but gold certainly is not helping the situation. If we get below the 0.87 level however, this market will then head to the 0.85 handle. AUD-USDWe have no plans whatsoever on buying.
Forecast
The week close by the AUD/USD has the Forex pair in a position to test the January 31 bottom at .8693 and the January 24 bottom at .8659. You have to go to the monthly chart to find the next downside target. Based on the October 2008 bottom at .6008 and the July 2011 top at 1.1080, the next likely target is its 50% level at .8545.
GBP/USD
The GBP/USD pair initially tried to rally during the course of the week, but then turned back around to fall and close near the 1.6250 region. The hammer just below from two weeks ago of course should provide plenty of support though, so we feel that this market will more than likely continue to grind sideways in this region a for finally making its move. GBP-USDThat being said though, at this point in time we favor the upside in this market based upon the technical factors on this chart such as the hammer from the 50% Fibonacci retracement level.
Forecast
As far selling is concerned, we are bit hesitant to start selling in this area, at least until we get below the 1.62 level. If we do in fact sell below that area, we would then aim for the 1.60 level. That level of course should be supportive based upon the fact that it is a large, round, psychologically significant number of importance not only based upon the number itself, but previous action on longer-term charts.
USD/JPY
The USD/JPY pair initially fell during the course of the week, but found enough support near the 108 level to turn things back around and form a hammer at the top of a very strong move. Because of this, it appears that the market is ready to continue going higher, but we do recognize of the 110 level just above is going to be resistive. USD-JPYBecause of this, we are bit hesitant to start buying but recognize that a daily close above the 110 level is probably enough of a reason to start buying this market yet again, as it most certainly cannot be sold at this point in time.
Forecast
Pullbacks at this point time continue to be buying opportunities as far as we can see, especially considering that the trend is so strong. It is not until we break down below the 105 level that we would even consider selling, something that isn’t going to happen anytime soon.
Data Update for 29th Sep to 03rd Oct 2014

Time Currency Impact Particualr Forecast Previous
All Day EUR High German Prelim CPI m/m -0.10% 0.00%
5:30am NZD High ANZ Business Confidence 24.4
7:15am CNY High HSBC Final Manufacturing PMI 50.5 50.5
2:00pm GBP High Current Account -16.9B -18.5B
2:30pm EUR High CPI Flash Estimate y/y 0.30% 0.30%
6:00pm CAD High GDP m/m 0.20% 0.30%
7:30pm USD High CB Consumer Confidence 92.2 92.4
6:30am CNY High Manufacturing PMI 51.1 51.1
7:00am AUD High Retail Sales m/m 0.40% 0.40%
2:00pm GBP High Manufacturing PMI 52.6 52.5
5:45pm USD High ADP Non-Farm Employment Change 206K 204K
Tentative NZD High GDT Price Index 0.00%
7:15pm USD High Final Manufacturing PMI 58 57.9
7:30pm USD High ISM Manufacturing PMI 58.6 59
7:00am AUD High Building Approvals m/m 1.10% 2.50%
AUD High Trade Balance -0.78B -1.36B
2:00pm GBP High Construction PMI 63.7 64
5:15pm EUR High Minimum Bid Rate 0.05% 0.05%
6:00pm EUR High ECB Press Conference
USD High Unemployment Claims 299K 293K
2:00pm GBP High Services PMI 59.1 60.5
6:00pm CAD High Trade Balance 1.5B 2.6B
USD High Non-Farm Employment Change 216K 142K
USD High Trade Balance -41.0B -40.5B
USD High Unemployment Rate 6.10% 6.10%
7:30pm USD High ISM Non-Manufacturing PMI 58.5
  • 59.6
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GOLD

The gold markets as you can see fell during the course of the day on Wednesday, Goldbut remain in a consolidative pattern. With that, we don’t really have a set up right now that we are willing to trade, but would love to see some type of short-term rallies that we can start selling. On the other hand, if we managed to break down below the $1200 level on a daily close, at that point time we would be sellers as the market should in fact head to the 1000 level on that break down.

SILVER

The silver markets did very little during the day, simply going back and forth on Wednesday. SilverThe $17.50 level has offered a significant amount of support, but most certainly the $18.00 level is significant resistance. With that, we feel that the market continues to go sideways with a downward bias, and as a result we have absolutely no interest in buying. However, on short-term charts we are more than willing to sell resistive candles in order to take advantage of the sideways action that we have been involved in for the last three sessions. Ultimately though, we feel that the summer markets to continue to go lower.

CRUDE

The light sweet crude market went back and forth during the course of the session on Wednesday, Crudehovering around the $91.50 region. The $92 level above offered significant resistance though, and as a result we stayed in a fairly tight range all day. With this, we believe that a market like this is probably best left alone, but we do recognize that we could get a little bit of a bounce, perhaps heading as high as $95. That area above is significant resistance though, so we would not anticipate any move higher to go beyond there.

Data Update for 25th Sep 2014

Time Currency Impact Particualr Forecast Previous
5:20am JPY SPPI y/y 3.70% 3.70%
8:00am AUD High RBA Gov Stevens Speaks
25th-30th GBP Nationwide HPI m/m 0.80%
1:30pm EUR M3 Money Supply y/y 1.90% 1.80%
EUR Private Loans y/y -1.50% -1.60%
EUR Italian Retail Sales m/m 0.20% 0.00%
3:30pm GBP CBI Realized Sales 34 37
6:00pm USD High Core Durable Goods Orders m/m 0.70% -0.70%
USD High Durable Goods Orders m/m -17.70% 22.60%
USD High Unemployment Claims 294K 280K
7:15pm USD Flash Services PMI 59.4 59.5
8:00pm USD Natural Gas Storage 90B

 

  • SINGAPORE shares rebounded on Wednesday following a firmer Wall Street and hopes that the US Federal Reserve will adhere to its dovish stance.The Fed, which will conclude a two-day policy meeting on Thursday (Singapore time), has held the rate close to zero for more than five years, and stocks have surged against that backdrop.
  • XPRESS Holdings warned its shareholders of a significant net loss for FY2014. The group added that this is mainly attributed to the recoverability issue relating to its receivables and impairment of goodwill.
  • Keppel Corporation announced that its subsidiary Keppel FELS has secured a fifth jackup contract from Qatar’s Gulf Drilling International (GDI) for US$227 million, scheduled for delivery in the first quarter of 2016. As part of the contract, GDI has options for two more KFELS B Class rigs for deliveries in 2017.
  • Magnus Energy Group announced the resignation of its managing director Lim Kuan Yew, after six-and-a-half-years in this position at the company,to pursue personal ventures and businesses. The resignation takes effect on Sept 30. Mr Lim is responsible for strategic planning, establishing future direction and business development of the group, and oversees its overall management and operations.