Saturday, June 20, 2015

Action Insight Weekly Report 6-20-15

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Action Insight Weekly Report Markets Snapshot

Dollar Sold off of Dovish Fed, Sterling Shone

Dollar ended the week as one of the weakest major currencies after Fed signaled that even if the first hike could still come in September, the following tightening path would remain gradual. The greenback was only overwhelmed by the New Zealand dollar as analysts saw the much weaker than expected Q1 GDP reading as sealing the case for a July RBNZ cut. Sterling was the strongest major currencies as boosted by strong inflation and wage growth data. Meanwhile, Euro stayed resilient in spite of the endless Greece drama, which is now entering the final stage. Volatility was seen in other financial markets but they're generally staying in range. DJIA rebounded but was stuck in recent range below 18351.36. Similar picture was found in S&P 500 which failed to break out from range from 2134.72 high. Crude oil extended range trading below 62.58. Gold was back above 1200 handle.

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Featured Technical Report

EUR/AUD Weekly Outlook

EUR/AUD stayed in sideway consolidation below 1.4767 last week and outlook is unchanged. Initial bias stays neutral this week first. Overall, near term outlook remains cautiously bullish as long as 1.4352 support holds. As noted before, recent development suggests that the medium term trend is possibly reversing. Above 1.4767 will target 1.4893 and then 1.5331 key resistance. Though, break of 1.4352 will dampen our bullish view and turn bias back to the downside.

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Suggested Readings

 

The Week in Review and Outlook

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