Saturday, June 7, 2014

Action Insight Weekly Report 6-7-14

ActionForex.com
Action Insight Weekly Report Markets Snapshot

Forex Markets Mixed after an Eventful Week

The development in the forex markets were quite mixed last week despite all the high profile events. While ECB launched unprecedented easing measure, the selloff in Euro was proved to be brief and the common currency indeed gained over the week against dollar and yen. Canadian dollar was the weakest major currency last week as BoC statement played down the significant of the surge in inflation. Yen was the second weakness currency on risk apettie as US indices continued the market to new record higher. On the other hand, Aussie was the strongest currency after RBA maintained the pledge to keep rates unchanged for a period of time. Sterling was the second strongest currency as helped by buying in crosses. Dollar was mixed after some solid economic data, including the ISM indices and non-farm payrolls.

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Featured Technical Report

EUR/JPY Weekly Outlook

EUR/JPY's recovery last week indicates that a short term bottom is formed at 137.97 on bullish convergence condition in 4 hours MACD. While upside momentum is a bit unconvincing, further rally is in favor this week. As the cross is staying inside the sideway pattern from 145.68, we'd expect strong resistance from upper trend line (now at 142.10) to limit upside and bring reversal. Meanwhile, below 137.97 will extend the fall from 143.78 and turn bias to the downside for 136.22 support and below.

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Suggested Readings

 

The Week in Review and Outlook

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