EUR/USD: The EUR fell after Draghi's speech and weak Ifo reading.
€The ECB President Mario Draghi said on Friday in Jackson Hole that he was confident that stimulus steps announced in June, helped by a weaker euro, boost demand in the euro zone. He stressed, however, the central bank stands ready to do more. In his opinion recent growth data confirmed the recovery in the euro zone remained weak and promised to keep the policy stance accommodative for an extended period of time.
€Ifo business climate index, based on a monthly survey of some 7,000 companies, fell in August to 106.3 from 108 a month earlier, undershooting the median forecast of 107. Index of current situation amounted to 111.1 vs. 112.9 a month earlier and index of expectations fell to 101.7 from 103.4 in July. Ifo economist Klaus Wohlrabe said Ifo expected growth to be "close to zero" in the third quarter.
€The EUR/USD fell to 1.3185 in early Asian trade, its lowest since September 2013 and after short recovery tested the level again after poor Ifo reading. In the opinion of GrowthAces.com the outlook for the EUR/USD is bearish. However, we stay flat on this market.
Significant technical analysis' levels:
Resistance: 1.3221 (session high Aug 25), 1.3297 (high Aug 22), 1.3324 (high Aug 20)
Support: 1.3185 (session low Aug 25), 1.3157 (low Sep 9), 1.3104 (low Sep 6)
USD/JPY: Dovish Kuroda weakened the JPY.
€The BoJ governor Haruhiko Kuroda said in Jackson Hole that the Bank of Japan might have to pursue its aggressive monetary policy easing for some time to fully vanquish deflation. He added that the central bank's efforts to overcome deflation by stimulating Japan's economy with large-scale asset purchases was proving effective. In his opinion low long-term interest rates will likely not rise until the 2% target is reached and added that the BoJ's 2% inflation target, once met, could serve as a benchmark for wage negotiations.
€Bulls has taken control of the USD/JPY market. Growth Aces' trading idea is to go long at the level of 103.50.
Significant technical analysis' levels:
Resistance: 104.84 (high Jan 23), 104.92 (high Jan 16), 105.00 (psychological level)
Support: 103.50 (low Aug 22), 103.08 (high Jul 30), 102.90 (low Aug 20)
NZD/USD: We went long. The target is 0.8500.
€The NZD/USD slumped to its lowest since late February, as the USD powered up after Fed Chair Janet Yellen appeared relatively less dovish than other central bank chiefs. GrowthAces.com went long on the NZD/USD on 0.8365 with the target of 0.8500 and stop-loss at 0.8320.
Significant technical analysis' levels:
Resistance: 0.8430 (high Aug 22), 0.8435 (high Aug 20), 0.8468 (200-dma)
Support: 0.8350 (61.8% 0.8052-0.8833), 0.8343 (low Mar 3), 0.8293 (low Feb 27)
GROWTHACES.COM TRADING POSITIONS:
NZD/USD: long at 0.8365, target 0.8500, stop-loss 0.8320
GrowthAces.com is an independent macroeconomic research consultancy for traders. We offer you daily forex analysis with forex trading signals. The service covers forex forecasts and signals for following currencies: EUR, USD, GBP, JPY, CAD, CHF, AUD, NZD as well as emerging markets. Our subscribers should expect to receive: forex trading strategies, latest price changes, support and resistance levels, buy and sell forex signals and early heads-up about the potential fx trading opportunities. GrowthAces.com offers also daily macroeconomic fundamental analysis that enables you to see fundamental changes on forex market. We provide in-depth analysis of economic indicators resulting from knowledge, experience, advanced statistics and cutting-edge quantitative tools.
We encourage you to subscribe to our daily forex newsletter on http://growthaces.com to get daily analysis for forex traders. We intend that our consultancy should help you make better decisions. At GrowthAces.com we give our best to you - always greatest quality, usefulness and profitability.
€The ECB President Mario Draghi said on Friday in Jackson Hole that he was confident that stimulus steps announced in June, helped by a weaker euro, boost demand in the euro zone. He stressed, however, the central bank stands ready to do more. In his opinion recent growth data confirmed the recovery in the euro zone remained weak and promised to keep the policy stance accommodative for an extended period of time.
€Ifo business climate index, based on a monthly survey of some 7,000 companies, fell in August to 106.3 from 108 a month earlier, undershooting the median forecast of 107. Index of current situation amounted to 111.1 vs. 112.9 a month earlier and index of expectations fell to 101.7 from 103.4 in July. Ifo economist Klaus Wohlrabe said Ifo expected growth to be "close to zero" in the third quarter.
€The EUR/USD fell to 1.3185 in early Asian trade, its lowest since September 2013 and after short recovery tested the level again after poor Ifo reading. In the opinion of GrowthAces.com the outlook for the EUR/USD is bearish. However, we stay flat on this market.
Significant technical analysis' levels:
Resistance: 1.3221 (session high Aug 25), 1.3297 (high Aug 22), 1.3324 (high Aug 20)
Support: 1.3185 (session low Aug 25), 1.3157 (low Sep 9), 1.3104 (low Sep 6)
USD/JPY: Dovish Kuroda weakened the JPY.
€The BoJ governor Haruhiko Kuroda said in Jackson Hole that the Bank of Japan might have to pursue its aggressive monetary policy easing for some time to fully vanquish deflation. He added that the central bank's efforts to overcome deflation by stimulating Japan's economy with large-scale asset purchases was proving effective. In his opinion low long-term interest rates will likely not rise until the 2% target is reached and added that the BoJ's 2% inflation target, once met, could serve as a benchmark for wage negotiations.
€Bulls has taken control of the USD/JPY market. Growth Aces' trading idea is to go long at the level of 103.50.
Significant technical analysis' levels:
Resistance: 104.84 (high Jan 23), 104.92 (high Jan 16), 105.00 (psychological level)
Support: 103.50 (low Aug 22), 103.08 (high Jul 30), 102.90 (low Aug 20)
NZD/USD: We went long. The target is 0.8500.
€The NZD/USD slumped to its lowest since late February, as the USD powered up after Fed Chair Janet Yellen appeared relatively less dovish than other central bank chiefs. GrowthAces.com went long on the NZD/USD on 0.8365 with the target of 0.8500 and stop-loss at 0.8320.
Significant technical analysis' levels:
Resistance: 0.8430 (high Aug 22), 0.8435 (high Aug 20), 0.8468 (200-dma)
Support: 0.8350 (61.8% 0.8052-0.8833), 0.8343 (low Mar 3), 0.8293 (low Feb 27)
GROWTHACES.COM TRADING POSITIONS:
NZD/USD: long at 0.8365, target 0.8500, stop-loss 0.8320
GrowthAces.com is an independent macroeconomic research consultancy for traders. We offer you daily forex analysis with forex trading signals. The service covers forex forecasts and signals for following currencies: EUR, USD, GBP, JPY, CAD, CHF, AUD, NZD as well as emerging markets. Our subscribers should expect to receive: forex trading strategies, latest price changes, support and resistance levels, buy and sell forex signals and early heads-up about the potential fx trading opportunities. GrowthAces.com offers also daily macroeconomic fundamental analysis that enables you to see fundamental changes on forex market. We provide in-depth analysis of economic indicators resulting from knowledge, experience, advanced statistics and cutting-edge quantitative tools.
We encourage you to subscribe to our daily forex newsletter on http://growthaces.com to get daily analysis for forex traders. We intend that our consultancy should help you make better decisions. At GrowthAces.com we give our best to you - always greatest quality, usefulness and profitability.
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