Daily Market Review for Monday, August 4th 2014

Daily Market Review for Monday, August 4th 2014

AUD/NZD

Key Levels: High at 1.1048/Low at 1.0861

The technical analysis maverick pair

One of the most attractive currency pairs to trade right now is AUD/NZD given its high predictability based on technical analysis alone. The Trading Department of TitanTraderecommends having this currency pair as a default in your trading portfolio.The 55 days WMA and the resistance line have both indicated that the pair is due to a correction. The support level targeted is 1.0861. Australia’s economy is performing slightly weaker than New Zealand’s as Australia is coming of its resource boom and with global growth still lethargic it has had an effect on the economy. Also, there’s a big difference in handling the economy between the two countries’ central banks – RBNZ being the one that’s moving to the sidelines and talking about modifying interest rates. TitanTrade’s Head Trader has all the positive signs for a medium-term correction on this currency pair, the current market volumes and volatility being another favorable aspect of trading it. The expected decrease is of about 1% and the time frame is limited to about 3 trading days. Down

Key Support Levels at: 1.0909/1.0880/1.0861

Key Resistance Levels at: 1.0994/1.1011/1.1048

USD/CNY

Key Levels: High at 6.1872/Low at 6.1698

Non-Manufacturing PMI slowing down

China non-manufacturing Purchasing Managers Index lost ground: 54.2 (previous value was 55). Another macro-economical indicator that disappoints. The decrease is not important but the impression this figure made in investor’s minds is consistent with the recent sub-par numbers from China. The PBOC (China’s Central Bank) struggles to keep the real estate, the credit and the construction bubbles in check. Until now it’s done this pretty successfully but the ice is starting to crack. TitanTrade’s Asia Trading Specialist reports large numbers of pending long orders for USD/CNY lined up every night ahead of the start of China’s trading session. The nearest important resistance level is 6.1872 and the market has the volumes to support such a movement. Over the weekend another packet of bad news hit China culminating with the 200 casualties in a factory explosion. It’s only normal that, taking into consideration all the news and events from above the investor confidence in China’s economy is waningTitanTrade.’s Trading Office indicates a continuation trend for this currency pair, 6.1872 is a level that can be reached within a couple of days. The Center of Gravity indicator also offers valid arguments in favor of a call trade as do the ADX and the intersection of 100 and 200 days DMA. Up

Key Support Levels at: 6.1754/6.1734/6.1698

Key Resistance Levels at: 6.1820/6.1850/6.1872

EUR/GBP

Key Levels: High at 0.8030/Low at 0.7931

EUR/GBP – the best current option for trading GBP

JP Morgan Global FX Strategy gives the waning UK cyclical momentum as the best argument in favor of trading EUR/GBP over the next weeks. Despite only modest increases in Treasury yields last month the volumes posted their largest and broadest rally since the US tapering tantrum. The UK economy is reviving and the inflation is firming and abnormally low volatility for some currency pairs is starting to reflect emerging risks. The Scottish referendum is closing in, the EUR/GBP covers currently the call positions on sterling. 0.7931 is the level that the technical experts atTitanTrade  see as top support influence point. In order to cover to neutralize the over-exposure on USD in the trading portfolio the recommendation is to use GBP in pair with EUR because the pair is currently under-valued by about 1%, says JP Morgan.TitanTrade Specialists have noted a big increase in trading volumes for EUR/GBP and foresee a slow but steady picking up for the trading intensity as the Scottish referendum approaches. Down

Key Support Levels at: 0.7962/0.7951/0.7931

Key Resistance Levels at: 0.7986/0.8010/0.8030