“Plans”, Movements caused largely by the public holiday

We observed yesterday in the markets, “plans”, movements caused largely by the public holiday in the United States held the day of the president who had no activity on Wall Street.

We observed yesterday in the markets, “plans”, movements caused largely by the public holiday in the United States held the day of the president who had no activity on Wall Street.

We could see very low volume traded in general and in the foreign exchange market in particular where the main pairs showed round trips in rank.

The Nikkei ended the first day of the week with losses, which were attributed to the tightening of banking regulations of China’s banking sector, which were taken by the government Mandarin in order to expand credit and contain speculative bubbles.

Later we saw a major European financial centers closed with slight gains, led the FTSE closed positions with leading profit 0.49% bags of old continent, the CAC 40 French followed with 0.28%, and then the DAX30 with 0.19%.

Tuesday was known from Germany ZEW index, which measures the confidence of investors in the Germanic countries through a survey conducted by the institute that bears his name with a fall in the month of February of 45.1, compared to 47.2 the previous month.

Moreover, since the UK inflation data met with an acceleration of 3.5% yoy, according to figures supplied by the National Bureau of Statistics.

Euro – Dollar:

After a day with a volume of “invalid”, and minimal movements Euro continued its downward direction in the week beginning the session by closing below the opening price of 1.3595.

In this new day Tuesday, and after the data known from Germany ZEW institute’s look back to the European currency positions. Although the figure showed a decrease over the previous period, it exceeded expectations of analysts.
Going chartist analysis, we found this pair trading below the daily trendline (see chart), which provide resistance to upward continuation. At this moment pass 1.3685. Passed the first level of resistance will continue 1.3705, 1.3735, and 1.3770 and following barriers.

The media should confirm the rebound in the said area of congestion, taking up more bearish direction, will be 1.3642, 1.3610, 1.3570, and 1.3530.

Dollar – Franco:

While adhering to what happened in the rest of the market during the day Monday, the couple filed this motion lateralized to the lack of volume.

Tuesday we saw the pair falling right now who reach a minimum hours ago in the area where we find the lower limit of the bullish channel that has been guiding the movement in 4 hours charts

(See Figure). The same is found at 1.0800, then continue following objectives as 1.0825, 1.0855, and 1.0890.

The contrast media will be 1.0750, 1.0720, 1.0690, and 1.0665.

Pound – Dollar:

The UK currency is showing us round trips in a given price range in recent days, stopping temporarily the most bearish movement.

No big moves at the beginning of the week, we see in this new day trading at 1.5643 the pair retreated from their highest price in 1.5730, resistance level where we find the upper limit of a symmetrical triangle formation that confirmed would show a further downward movement greater.

The first level of support puts you in the leg below the figure mentioned in 1.5589 (see Graphic). Then 1.5530, 1.5460, and 1.5390 will be the next target.

The resistors in the return encounter at 15,680, 1.5730, 1.5770, and 1.5830.

Dollar – Yen:

Japan’s currency ended the first day of the week in the opening end forming a Doji on daily charts, which is explained most likely due to low volume, the same uncertainty for investors.

Today we see the upward direction even after the opening of U.S. trading session, “test” the upper limit of the bearish channel which guides the movement in 4 hours charts (see Graphic). We found that could confirm bullish signals the breakdown of that figure in today, continuing the upward movement in detention following areas 90.45, 90.70, 91.05 and 91.35.

The contrast media will be 89.90, 89.55, 89.20 and 88.80.

Facundo Molina is founder and director of MolFX - Management, a company fully specialized in Foreign Exchange Markets, with an important client portfolio through Capital Markets Services LLC (CMS). He has a BA Business Management at the Universidad Nacional del Sur (Argentina), where he has a doctorate degree based on the application of Fibonacci theory into financial markets. He also acts as professor of new and experiments traders.