EUR/USD ratio has shown movement towards long positions

EUR/USD ratio has shown movement towards long positions Wednesday. Short positions have a majority (53%), indicative of trader bias towards EUR/USD breaking out and moving to lower levels.•EUR/USD was flat in the Asian session and has posted small losses in European trade
•1.1054 is a weak resistance line
•1.0925 is providing support
Further levels in both directions:
•Below: 1.0925, 1.0821 and 1.0708
•Above: 1.1054, 1.1150, 1.1278 and 1.1376
•Current range: 1.0925 to 1.1054
EUR/USD is unchanged on Wednesday, following losses on the Tuesday session. The pair is currently trading at the 1.10 line. On the release front, there are no major releases on the schedule. German PPI posted a gain of 0.4%, beating the estimate. Eurozone Current Account dipped to EUR 30.8 billion, but this was above expectations. In the US, today’s sole event is Crude Oil Inventories, with the estimate standing at -1.3 million. On Thursday, the ECB meets for a policy meeting and will set the benchmark rate. Over in the US, the key release is Unemployment Claims.
German ZEW Economic Sentiment, a highly regarded report, shocked the markets by posting a sharp decline in July, the first since October 2014. The reading of -6.8 points was nowhere near the forecast of +8.2 points, and recorded a sharp downturn after a gain of 19.2 points in June. Eurozone ZEW Economic Sentiment followed suit with a reading of -14.7 points, compared to an estimate of +12.3 points. In June, the index boasted a strong gain of 20.2 points. These dismal readings point to deep pessimism on the part of institutional investors and analysts, as the shock Brexit vote has raised serious concerns that Germany and the Eurozone could suffer a downturn in economic growth due to Britain exiting from the European Union.

USD/JPY

Summary :
Target Level : 104.639
Target Period : 2 days
Analysis :
Rising Wedge identified at 20-Jul-04:00 2016 GMT. This pattern is still in the process of forming. Possible bearish price movement towards the support 104.639 within the next 2 days.
Resistance Levels :
( B ) 106.535Last resistance turning point of Rising Wedge.
Support Levels
( A ) 104.639Last support turning point of Rising Wedge.

Chart date range : 06-Jul-12:00 GMT-> 20-Jul-04:00 GMT Data interval : 4 hour RSI: 34 Candles MA: 34 Candles

Japanese yen is showing limited change on Tuesday

The Japanese yen is showing limited change on Tuesday, after posting considerable losses in the Monday session. In the North American session, the yen is trading at 106.34. There are no Japanese events on Tuesday. Over in the US, Building Permits matched the forecast, while Housing Starts beat expectations.
The yen suffered a dismal week, plunging close to 600 points before reversing directions and dropping 400 points on the week. The yen dropped to levels not since the Brexit vote in late June, as Prime Minister Shinzo Abe’s election victory last week has paved the path for further monetary moves as part of the government’s economic platform. The government is busy preparing a fiscal stimulus package and the markets will be keeping an eye on the Bank of Japan, which meets in late July and could adopt further easing measures. The yen had gained ground after the Brexit vote, even breaking below the 100-level, as the political and economic turmoil bolstered the safe-haven yen.
US consumer indicators were on center stage on Friday, and the numbers were a mixed bag. Consumer inflation reports posted small gains of 0.2%, as inflation levels remain soft. There was better news on the consumer spending front, as Core Retail Sales posted a strong gain of 0.7%, beating the estimate. The UoM Consumer Sentiment report dipped below the 90-point level for the first time in three months, missing expectations. The Federal Reserve is unlikely to raise rates before September at the earliest, unless there is some strong improvement in economic data, particularly inflation and wage growth, which remain at low levels.


USD/JPY Fundamentals
Tuesday (July 19)

• 8:30 US Building Permits. Estimate 1.15M
• 8:30 US Housing Starts. Estimate 1.17M

*Key events are in bold
*All release times are EDT

USD/JPY for Tuesday, July 19, 2016

USD/JPY July 19 at 10:00 EDT
Open: 106.18 High: 106.53  Low: 105.62 Close: 106.40

USD/JPY Technical

S3	S2	S1	R1	R2	R3
103.73	104.99	105.87	106.81	107.65	108.61

• USD/JPY posted slight losses in the Asian session. The pair showed limited movement in the European session and has moved higher in North American trade
• 106.81 is a weak resistance line
• 105.87 is providing support
• Current range: 105.87 to 106.81

Further levels in both directions:

• Below: 105.87, 104.99, 103.73 and 102.36
•  Above: 106.81, 107.65 and 108.61

Australian dollar has posted sharp losses on Tuesday

The Australian dollar has posted sharp losses on Tuesday, as AUD/USD has dropped below the 0.75 level. In economic news, the RBA minutes pointed to a dovish stance by the central bank regarding a rate cut in the near future. Later in the day, Australia releases the MI Leading Index. In the US, we’ll get a look at construction data, with the release of Building Permits and Housing Starts. Neither indicator is expected to show much change in the June reports.
The RBA published its minutes from its July policy meeting, indicating that there was more room to lower rates, given low inflation levels. However, the minutes added that a monetary move by the bank would be data-dependent. In other words, if inflation and other key indicators show improvement, there will be less pressure on the bank to cut rates in order to boost inflation and bolster economic growth. The RBA caught the markets flat-footed in May, when it lowered rates from 2.00% to 1.75% in response to a dismal CPI release in the first quarter of -0.2%. The next CPI release is due on July 27, and another weak reading could be a sign that the RBA will again lower interest rates in order to boost economic growth.

GBP/USD is on a downward trend

•GBP/USD is on a downward trend, having posted losses in the Asian and European sessions
•1.3142 is providing support
•1.3219 has switched to a resistance role following losses by GBP/USD. It is a weak line
Further levels in both directions:
•Below: 1.3142, 1.3064 and 1.2938
•Above: 1.3219, 1.3349, 1.3513 and 1.3675
•Current range: 1.3142 to 1.3219
The British pound has posted considerable losses on Tuesday, erasing the gains from the Monday session. GBP/USD is currently trading at the 1.32 level. On the release front, the UK released a host of consumer inflation indicators, led by CPI. The index posted a respectable gain of 0.5%, beating the forecast of 0.4%. In the US, we’ll get a look at construction data, with the release of Building Permits and Housing Starts. Neither indicator is expected to show much change in the June reports. On Wednesday, it’s another busy day in the UK, with the release of key employment reports, led by Employment Change.
The pound has started the week quietly, in sharp contrast to last week, which was marked by strong volatility. A solid CPI reading for June failed to boost GBP/USD. CPI climbed 0.5%, its strongest monthly gain in three months. Other inflation indicators also beat their estimates. Still, we’ll have to wait for the July CPI report to better gauge the fallout of the Brexit vote, which took place on June 23.

USD/CHF

Summary :
Target Level : 0.9764
Target Period : 3 days
Analysis :
Triangle identified at 18-Jul-20:00 2016 GMT. This pattern is still in the process of forming. Possible bearish price movement towards the support 0.976 within the next 3 days.
Resistance Levels :
( B ) 0.9844Last resistance turning point of Triangle.
Support Levels
( A ) 0.9764Last support turning point of Triangle.

It was a brutal week for the yen

The markets had plenty of US consumer indicators to sift through on Friday, and the numbers were a mixed bag. US consumer inflation reports posted small gains of 0.2%, as inflation levels remain soft. There was better news on the consumer spending front, as Core Retail Sales posted a strong gain of 0.7%, beating the estimate. The UoM Consumer Sentiment report dipped below the 90-point level for the first time in three months, and was short of expectations. The Federal Reserve is unlikely to raise rates before September at the earliest, unless there is some strong improvement in economic data, particularly inflation and wage growth, which remain at low levels.
It was a brutal week for the yen, which plunged close to 600 points before reversing directions and closing the week with losses of 400 points. The yen dropped to levels not since since late June, as Prime Minister Shinzo Abe’s election victory last week has paved the path for further monetary stimulus as part of the government’s economic platform. Abe has asked Economic Minister Nobuteru Ishihara to prepare a fiscal stimulus package and the markets will be keeping an eye on the Bank of Japan, which meets in late July and could adopt further easing measures. The yen had gained ground after the Brexit vote, even breaking below the 100-level, as the political and economic turmoil bolstered the safe-haven yen. Still, with the divorce between Britain and the European Union likely to be acrimonious and difficult, the yen could rebound on Brexit aftershocks.