Saturday, March 8, 2014

Action Insight Weekly Report 3-8-14

ActionForex.com
Action Insight Weekly Report Markets Snapshot

Yen Tumbled as Risk Appetite Returned, Euro to Extend Post ECB Rally

It has been a very volatile week. Markets were firstly pressured by worries over the tension in Ukraine but risk appetite then struck a strong return. S&P 500 closed at new record high of 1878.04 while DOW also surged to close at 16452.72, within 100 pts from historical high of 16588.25. US treasury yield staged a strong rebound with both 30 year yield and 10 year yield taken out key near term resistance to indicate reversal. In the currency markets, Aussie and Kiwi were the strongest currency last week following rally in the stock markets. Euro came as the next strongest as boosted by the upbeat ECB press conference. Dollar survived a solid NFP report, despite other mixed data and ended the week mixed against other major currencies. Canadian dollar was the second weakest currency after disappointing job market data. Meanwhile, yen was the weakness following risk rally and rebound in US yields.

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Featured Technical Report

EUR/JPY Weekly Outlook

EUR/JPY's rally from 136.22 resumed last week and surged to as high as 143.78 so far. Initial bias remains on the upside this week and break of 100% projection of 136.22 to 141.26 from 138.78 at 143.82 will target a test on 145.68 high next. Decisive break there is needed to confirm up trend resumption or we'd see another decline to extend the consolidation from 145.68. On the downside, break of 141.26 support will indicate that rebound from 136.22 has completed and will turn bias back to the downside for 138.78 and below.

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Suggested Readings

 

The Week in Review and Outlook

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