Monday’s Currency Markets Overview

Posted by: : Paul EbelingPosted on: March 9, 2015 Monday's Currency Markets Overview
 
Monday’s Currency Markets Overview

The USD drifted to a fresh 11-yr high against a basket of major currencies early Monday, remaining in favor as markets wagered the US Fed might lift interest rates sooner rather than later.

The US jobs data Friday had put the risk of a mid-year Fed hike on the table, sending US Treasury yields sharply higher. That in turn reenergized the .DXY rally.

Against the JPY, the USD fetched 120.70, not far from Friday’s 3-month high of 121.29. It was back near a 7.5 yr high at 121.86 set in December.

The USD also firmed against Cable and its Canadian peer, lifting .DXY as far as 97.828, highs last seen in September 2003. .DXY rose 1.28% Friday in its biggest daily gainer since July 2013, advanced further to trade at 97.80, the currency’s highest mark in 11.5 yrs.

Euro slid to 1.0822 early Monday in Asia, passing Friday’s trough at 1.0839 to reach lows not seen since September 2003, last at 1.0843.

In Asia, the Australian and New Zealand dollars hang near 1-month lows.

The Australian dollar (AUD) was at $0.7694, edging closer to a 6 yr low of 0.7627 marked last month but finding support after Australian job ads rose for the 9th month running in February.

The New Zealand dollar (NZD) stood at 0.7341, having been 1 of the worst performers after a near 2% fall to a low at 0.7357 Friday.

The Canadian dollar (CAD) touched its weakest level against the Buck in nearly 2 wks Friday, hurt by weak domestic economic data.

Technically speaking

EUR/USD (Daily)

Since last  June the Bears took control over this currency pair and Euro (EUR) saw a sharp decline Vs the USD tapping its lowest mark in more than 10 yrs. Then after a slightly recovery, the EUR fell sharply last Friday, and it remains to be seen whether it will fall farther.

The overall trend is Bearish.

Support Levels At Resistance Levels At
1.0829 1.1469
N/A 1.2551
N/A 1.3693

USD/JPY (Daily)

Since July the USD was able to appreciate Vs JPY and reached the level at 109.80 where the currency pair rebounded. Since then the pair experienced a downward movement until it reached the 2nd Fibo Fan line where it rebounded, climbing to a new high. For the last wks the pair traded slightly below the resistance mark at 121.68.

According to the indicators, it is likely that side ways movement in the near future between 1st resistance and 1st support line should the resistance hold.

Support Levels At Resistance Levels At
115.72 121.68
101.15 N/A
96.13 N/A

GBP/USD (Daily)

After this currency pair reached the resistance mark at 1.7161 in Summer of Y 2014, the Bears took control and pushed it towards its old mark seen in early Y 2013. The current support mark at 1.4971 was stable enough to prevent the pair from a further decline and brought a rebound.

Last Friday saw a sharp decline of the GBP and according to the indicators this trend may last for some time to come

Support Levels At Resistance Levels At
1.4971 1.5734
1.4833 1.6363
N/A 1.7161

 

 

Have a terrific week.

HeffX-LTN

Paul Ebeling

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.

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