Forex: Overview of Market in Technical Terms

On Last Friday, strong rebound in market has given rise to the temporarily bottom but it was anticipated that the some recovery will be seen in the market this week. As we have noticed that the S&P falls last week to the level of 500 but Dow is still in it’s position as it was in the whole week.

As there was a sharp fall is seen in the Aussie Dollars last week results in fall of strong currency pairs that is AUD/CAD and AUD/USD but a rise is shown in the currency pair EUR/AUD due to the rise of EURO currency from the last mid-week.

In the currency pair AUD/JPY some recovery might be seen which results in temporarily stabilization in the market. The strong resistance is expected in AUD/JPY that will be near 4500 level in the index. AUD/JPY is in upside limit and expected to bring another fall below the 77 level.

As compared to other currency pairs there was a weakness seen in the Aussie dollars is clear which impacts the pair AUD/CAD to 0.8645 level drop down. Now an outlook of Dollar index shows a short term top at 87.46.

In this week there will be some stabilization is expected since the Global stock market will be a great driving force for the Forex market. If in this week the Dow fall below 10000 level again then there will be re-emerge results in buying of Dollat and Yen.

In past week a fall below than 1.214 is seen in the EURO currency but in the mid-week it gets support from the rumors of ECB’s intervention that results in a short term bottom and recovery in the EURO currency.

The EURO currency outlook will remain bearish in this week due to the resistance needed of 1.326 in the EURO currency for the upside trend. The 1.2329 low has confirmed that the downtrend of 2008 high to past year lows has resumed back but in the mid week the EURO currency rebounds and it was expected that it will recover more in this week also.

Tags: Forex info, forex online, Forex tips

RBA Rate Hike Impacts on Foremost Aussie to Three-Month Subsides

In early days it was expected that RBA will raise the interest rates to 4.5 percent. This hike was announced before the EURO zone debt crisis and the investors are also willing to see what would be the next step of Central bank for rate hikes???

Due to the uncertainty in the euro zone countries the RBA is considering a pause state in the rate hikes as it brings in light this news in minutes. EU members discussed in the meeting that concerns of sovereign debt crisis will led the market into the the disturbances.

Greece debt crisis does not impact much on the Australia after this the Central Bank has announces to increase the policy rate by sixth time.

After the meeting of EU and IMF has decided to provide Stabilization fund of 750 billion in addition to the decided rescue fund of 110 billion for Greece, to anticipate the sovereign crisis in Greece.

But, the fund does not proves helpful for the euro zone countries unless it causes the slow down in the economic recovery of the world. The debt-ridden countries that belongs to euro zone admits the process of fiscal-consolidation.

Euro zone debt crisis leds the policy makers to pause but it is predicted that if the meeting was held in few weeks earlier then may be the RBA decision would be another.

It is expected that in RBA’s June meeting the cash rate will remain unchanged from 4.5 percent. The RBA also have to keep in mind about the important measures that should be taken against China, as it favors to determine the rate of commodities of Australia.

Australian Dollar currently trading at 0.872 since it gets weakens against the USD and leds to the 3 month low in the Forex market.

Tags: Forex, forex online, Forex tips