The EUR/USD consolidated its recent gains following a surge in the exchange rate in the wake of the ECB meeting. While the central bank mostly stuck to the script, keeping rates unchanged and QE in place, it did strike a more neutral stance but this will come slowly over a long period of time. Draghi, shrugged off the recent increases in inflation as transitory, and believes there is a need for the current stimulus to remain intact.
USDINR Daily charts are showing clear divergence when fisher transform indicator is applied over the charts. Fisher transform generally converts any probability distribution to Gaussian Probability Distribution. Thus making the indicator better in identifying turning point at the edges and helps trader in identifying trend reversals in the discretionary trading.
EURUSD is consolidating on the monthly and Weekly timeframe and negative sentiment prevail there. However on the Daily charts trading sentiment turned positive. Since the start of FEB 2017 EURUSD is in declining mode and so far twice EURUSD rallied from the intermediate lows formed around 1.0500 levels. It could act as a potential support zone in the upcoming day.
Since 2014, the Dollar has increased by 25% against a basket of major currencies. After President Trump’s election, the value of the greenback has risen by about 3%, but his recent comment questioning the wisdom of maintaining a “strong Dollar” seems to have put pressure on the USD, which so far has been in the red in 2017.
Pound is trading around 1.2494 and currently monthly sentimental RSI turned positive and likely to continue positive in the long term. It had almost taken 7 months for the sentiment to change positive since BR Exit. The Transition of sentiment from Red to Yellow color indicates positive trend reversal and the trend change is likely to be long term.
Some Elliott wave forex traders do watch the news — but for different reasons By Elliott Wave International Last Friday, EURUSD rallied strongly. Said Reuters: “The U.S. dollar tumbled against a basket of major currencies…on U.S. political uncertainty after the FBI said it would review more emails related to Democratic presidential candidate Hillary Clinton’s private […]
Any trader of foreign currencies likely understands the influence that both local and international politics have on currency values. Successful online forex trading involves following the changes and trends that are taking place across the globe, and making the right trades at opportune moments to capitalize on changes of currency values.
USDJPY is in the downtrend for the last 10 months. Overall Volatility and downtrend momentum weakened in the last 4 weeks with the sideways movement in USDJPY. The Psychological trading zone – Pairs parity 100 got whipsawed couple of times followed by a minor pullback last week. As the panic in USDJPY is fading away one can expect USDJPY to continue in the large consolidation zone and expecting to test 108 in the medium term.
USDJPY Monthly charts are in declining mode for the last 9 months and consecutively keep on making lower lows and lower highs. And from the 2015 high USDJPY had last around ~20% since the negative interest rate announcement came on January 29. And currently trading around above the psychological support zone of 100 levels. CM William VIX FIX levels indicates a possible oversold levels.
After Dr.Raguram Rajan’s(RBI Governer) announcement that he will not continue in office for the second term, stock markets on Monday reacted with gap down and recovered on relief of BRexit fears. However from the currency front USDINR ended at 67.6 with strong momentum . EOD sentiment is holding positive and also the coral trend indicator turns greens indicating that a possible uptrend from here on.
Interesting Divergence behavior in USDINR Daily charts while trying to use Fisher Transform indicator by Ehlers. Almost every divergence as shown in the above charts extended any where between 28-34 days. Divergence generally occurs when an indicator and the price of an asset are heading in opposite directions. Current positive divergence is running on for last 32 days i.e USDINR rate is slowing and moving down however fisher indicator is turning upwards.
Recently SEBI has approved stock exchanges to introduce cross currency derivative contracts (futures and exchange traded options) in multiple cross currency contracts. Approved Cross Currency pairs involves EURUSD, GBPUSD, USDJPY futures and the introduction of exchange traded option pairs EUR-INR, GBP-INR and JPY-INR currency pairs.