Saturday, July 26, 2014

Action Insight Weekly Report 7-26-14

ActionForex.com
Action Insight Weekly Report Markets Snapshot

Dollar Soared Broadly, Look ahead to FOMC, GDP and NFP

Dollar surged broadly last week with support from some solid economic data. Moreover, Euro was weighed down by geopolitical tensions in Ukraine and weak economic outlook. Sterling also weakened against the greenback as BoE minutes toned down the chance of rate hike. Nonetheless, Aussie ended the week as the strongest currency with boost from inflation data as well as Chinese manufacturing data. There was also some support for the Aussie as Kiwi dived as RBNZ signal pause in tightening after last week's rate hike. In other markets, S&P 500 surged to new record high of 1991.39 but pared back much gains on Friday. DOW tumbled sharply on Friday too to close below 17000 handle at 16960.57. 10 year and 30 year yields were stuck in range for most of the week but did end lower at 2.469 and 3.244 respectively.

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Featured Technical Report

EUR/JPY Weekly Outlook

EUR/JPY dropped to as low as 136.36 last week but lost some momentum on bullish convergence condition in 4 hours MACD and recovered. Initial bias is neutral this week first. As long as 137.71 resistance holds, deeper decline is still expected in the cross. It's now in the third leg of the pattern from 145.68 and should target 136.22 support. However, break of 137.71 resistance would be the first sign of near term reversal and wold turn bias back to the upside for 139.27 resistance for confirmation.

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Suggested Readings

 

The Week in Review and Outlook

 

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