USD/CHF breaks above 0.9765 and reaches multi-month high

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USD/CHF breaks above 0.9765 and reaches multi-month high

FITITOL--> FXstreet.com (San Francisco) - The Dollar has finally broken the 0.9765 resistance and it has reached the highest level since December 2010. In a 100 pips bullish movement from 0.9695, the USD/CHF has been rising after the US opening bell to reach fresh 19-month high at 0.9790.

Currently the pair is pricing at 0.9780, 0.90% above today's opening price action. Pair looks "Slightly Bullish" and "Extremely Oversold" according to the FXstreet.com technical studies.

"As 0.9700 barrier has been cleared, price approaches key short-term resistance and our target at 0.9769, 01 June peak", says Slobodan Drvenica, analyst at Windsor Brokers Ltd. "Break here to open fresh bull-phase, as a part of broader uptrend off 0.9041, 01 May low and expose Fib 61.8% of long-term 1.1730/0.7067 descend at 0.9950. Today's close above 0.9700 will be supportive".

AUD/USD falls below 1.0200

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AUD/USD falls below 1.0200

FITITOL--> FXstreet.com (Córdoba) - The aussie continues to lose ground against the dollar, weighed down by the strong risk aversion as stocks and commodities print sharp losses.

AUD/USD recently broke below the 1.0200 support level, and the 200-hour SMA to hit its lowest level in 1 week at 1.0178. Currently, the cross is trading at the 1.0185 zone, recording a 100-pip or 1.0% loss on the day and having entered in negative territory for the week.

"If this risk-off decline extends, the next support for AUD/USD is seen near 1.0125. Here we have a rising trendline as well as a previous resistance pivot to be tested as support", says Fan Yang, analyst at FXTimes. "A hold above this level suggests a further upside risk toward 1.0350-1.0380 where the market will test a previous resistance pivot".

"However if AUD/USD rallies from the trendline but holds below the 1.02-1.0220 area on the way up, it is likely respecting topping formation, and the bearish outlook would strengthen", he adds.

Forex Flash: PBOC rate cut is not a tonic for the markets

Forex Flash: PBOC rate cut is not a tonic for the markets

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Forex Flash: PBOC rate cut is not a tonic for the markets - BBH

FITITOL--> FXstreet.com (Córdoba) - PBOC rate cut is not a tonic for the markets, according to the BBH analyst team. "As we've noted before, the macro backdrop in China appears to be deteriorating faster than is recognized or desired".

"We have likely entered into a more aggressive phase of the easing process, and while timing of the next move is always pure guesswork, we would not be surprised to see PBOC easing of one form or another on a monthly basis in Q3 and Q4", they add. "Data deluge begins next week in China, with most likely to show continued softness that would explain this week's rate cut".

EUR/GBP steadies at multi-year lows

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EUR/GBP steadies at multi-year lows

FITITOL--> FXstreet.com (San Francisco) - The EUR/GBP cross remains weighted this Friday in North America, now consolidating in the 0.7940 zone after breaking key support at 0.7950 to touch a multi-year low of 0.7926, a level not seen since Nov. 3, 2008.

EUR pressure is seen across the board, on the back of more comments from ECB's Coeure about its role in the region’s debt crisis.

At the time of writing, the paring is quoted down 0.6% on the day and 1.8% this week to 0.7934. Immediate resistance lies in the mentioned 0.7950 area, then above at 0.7970 (30 May low). To the downside, support lies at 0.7860 (16 Oct 2008 high).

USD/JPY finds support at 79.50 and trims losses

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USD/JPY finds support at 79.50 and trims losses

FITITOL--> FXstreet.com (Córdoba) - The dollar pared losses against the yen after hitting a 3-day low at the 79.50 area in the wake of risk aversion triggered by the US jobs report.

USD/JPY bounced from a low of 79.48 during the New York session, although the recovery has been limited by the 200-hour SMA around 79.65. At time of writing, the pair is trading at the 79.60 zone, still down 0.4% on the day.

"The pair settled the week little changed after this week's monetary policy easing actions by various central banks prompted speculation that the BoJ may soon follow", says the Talking-Forex.com team. "In terms of technical levels, supports are seen at 79.60/41 and then at 79.23. On the other hand, resistance levels are seen at 80.02/10 and then at 80.56".

Mid-Week Summary: July 2-6

Mid-Week Summary: July 2-6

By: Nikolas Xenofontos

EUR/USD

The Euro (EUR) commenced the week with apparent selling pressure against the US Dollar (USD), following Friday’s 223 pips rebound. A better than expected eurozone Manufacturing PMI on Monday and higher Retail Sales on Wednesday were not able to improve sentiment. On Thursday, the European Central Bank (ECB) is expected to announce a rate cut to 0.75% and investors worldwide will closely monitor this announcement at 11:45 GMT and the press conference at 12:30 GMT.

GBP/USD

The British Pound (GBP) versus the US Dollar (USD) showed some appetite to attain higher highs on Monday but the pair’s upside potential proved limited. A much worse than anticipated Construction PMI on Tuesday, followed by a disappointing Services PMI on Wednesday pushed the Sterling lower. An announcement regarding the Bank of England’s interest rate and further asset purchases is due on Thursday at 11:00 GMT and may move the pair accordingly.

EUR/JPY

The single currency plunged against the Japanese Yen (JPY) as the pair failed to break above the 101.60 resistance level. The relatively lackluster economic calendar from Japan leaves the pair susceptible to sizeable swings caused by developments in the eurozone. Market participants should be alert for headlines that may induce or remove risk appetite.

EUR/GBP

The Euro (EUR) versus the British Pound (GBP) had a volatile start to the week, which saw the pair opening higher at 0.8071 and then diving to 0.8017. Rate decisions from both central banks on Thursday and the respective statements that follow may heavily influence the exchange rate among the two currencies.

USD/CHF

The week commenced with the US Dollar (USD) weakening against the Swiss Franc (CHF). This was due to risk aversion following the positive resolutions reached during the EU summit held last week. The level to watch for this pair lies at 0.9570. A break and hold above this area could push the greenback higher.

Successful Trades on July 5, 2012

Successful Trades on July 5, 2012

Trades Placed by optionFair

GBP/USD

According to Christopher Lewis's analysis of the GBP/USD, "The pair appears to head lower". That creates an investment opportunity on the instruments: “Low”, “Touch Down” or "No Touch".

I logged in the optionFairâ„¢ Binary Options Trading Platform and I traded $1,200 on the "Low" instrument. This kind of option has a return of 85% if the option closes below the strike price which means that I could get a return of of 1,020$ on my investment if the signal is in my favour.

The strike price for GBP/USD at the buying time (13:08) was 1.55742 for the expiration of 13:15. The pair expiry price was 1.55713 and I won my position!

EUR/USD

According to Christopher Lewis's analysis of the EUR/USD, "I think we are essentially in a down trend". That creates an investment opportunity in the following positions: “Low”, “Touch Down” or "No Touch".

With optionFair™ binary options trading platform, I traded $1500 on the “Touch Down” instrument. This kind of option has a return of 77% if the option touches the strike price prior to the expiry.

That means that if the signal is correct, I could get a return of $1,155 on my investment. The market price for the EUR/USD at the buying time (13:17) was 1.25104 and the target price was 1.25066 for the expiry of 13:03. At 13:20 the market hit my target price and I won $1,155 in just 3 minutes!