The US Dollar turned higher anew against the Japanese Yen, breaking above the 23.6% Fibonacci expansion at 101.85 to expose a support-turned-resistance shelf at 102.27. A further beyond this boundary targets the 38.2% level at 102.53. Alternatively, a reversal back below 101.85 on a daily closing basis exposes the February 4 low at 100.75. Close proximity of near-term up- and downside technical barriers argues against taking a trade at the moment from a risk/reward perspective. Furthermore, The Yen remains highly sensitive to churn in risk appetite trends, making the currency’s crosses vulnerable to sharp volatility as the upcoming US Employment report comes across the wires. We will opt to stay aside for now.
Southeast Asian Stocks Up for a Second Day (based on forexminute article)
Today, Southeast Asian stock markets rose for the second consecutive day amidst the news that the US may get better employment data for the month of January. On the slightly better trading day, the Philippines outperformed earlier performances and even Indonesia hit a two-week high.
Most of the regional market was up thanks to higher Asian shares and signs the U.S. nonfarm payrolls report which according to market analysts could put some global growth concerns to rest. Earlier, ForexMinute had reported that the IMF had warned that the global economy may slowdown thanks to stimulus tapering by the Federal Reserve of the U.S.
A slight growth in Japan's benchmark Nikkei 225 index was seen when it surged 1.6 percent to 14,382.77. Whereas Hong Kong's Hang Seng added 0.9 percent to 21,614.36, there was slightly upward movement in South Korea's Kospi which climbed 0.4 percent to 1,915.16. With slightly upward growth, Australia's S&P/ASX 200 saw investors buying stocks. The index rose 0.6 percent to 5,160.10. A similar performance of indexes was seen in the other regional major economic power Indonesia where its main index was up 0.9 percent at 4,465.61. It is it’s the highest since Jan. 24. Following the trend, Singapore rose almost 1 percent. Even MSCI's broadest index of Asia-Pacific shares outside Japan received a slight growth of 0.9 percent by 0638 GMT.
After Accepting Bitcoins, Tealet Now Introduces Litecoins as One of Its Payment Methods (based on forexminute article)
Good news comes finally for Litecoins, as the currency is now being officially accepted as one of the payment methods at Tealet, the world’s first online Farm-Direct tea marketplace ever to have accepted digital currencies.
At the start of the year, Litecoin has promised to play a major role in the forex market. But the currency faced a sharp fall, on the accord of Bitcoin’s very own fall, after the arrest of BitInstant CEO Charlie Shrem on the charges of money laundering. Amidst the havoc were few decent reports reflecting the Litecoin’s use in humanitarian activities.
With Tealet accepting it as its payment option, Litecoin has taken few little steps towards becoming the next Bitcoin – a speculation on which it has either been praised or criticized for.
Meanwhile, Tealet has its own reason for accepting Litecoins. The company has previously taken an initiative to cut out the middlemen, eliminating the inefficiencies in the global tea distributions systems. The company’s official website mentions the unnecessary 15% margins on tea they sell through the current global distribution system and dictates their mission to cut out the middlemen by introducing digital currencies as payment methods.
The company has already been accepting Bitcoins as its primary currency. They have in fact initiated their services only to make sure that the tea producer get the full wage for his skill and hard work, while he consumers get to receive the better quality tea consumption. They first made this announcement at the renowned Bitcoin discussion forum Bitcointalk.org saying, “We passionately believe that society can all make wiser consumption decisions if we are better connected with producers and can interact on a transparent platform. Our network of growers includes 20 farmers from 9 different countries. They are producing an array of loose-leaf tea coming from a single origin, preserving the unique terroir of every farm.”
Tealet have since became a brand among Bitcoin users, a thing which is likely to be reflective among the Litecoin users worldwide in coming days.
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Swiss Franc technical positioning is little-changed from yesterday, with prices treading water above 0.90 to the US Dollar. A daily close above support-turned-resistance at 0.9038, the 38.2% Fibonacci expansion, exposes the 50% level at 0.9081. Alternatively, a turn below support at 0.8986, the 23.6% Fib, targets a rising trend line set from mid-December (now at 0.8954).
Yesterday’s price action formed a Doji candle, pointing to indecision below resistance and hinting a move lower may be ahead. Confirmation is absent however, arguing against taking a short position. Meanwhile, taking a shot on the long side looks unattractive from a risk/reward perspective. We will hold off on taking a trade at current levels.
How to Trade AUDUSD Forex Yearly Pivot Points (source - dailyfx.com)
AUDUSD Yearly Pivot Trading Plan
After a slow and choppy start in 2013, AUDUSD showed the direction it wanted to go; down. Once the first pivot was penetrated and cleared, AUDUSD took off in a fairly obvious direction punctuated by long, wide ranging red bars signaling that the bears were in full control. It paid to wait and stand aside for the “real” move. Fast-forward to 2014, and we can see Aussie heading to yearly highs near 0.9076.
A close above the yearly high opens up a move to the central pivot at 0.9444. If the Aussie bounces down from this resistance point, then a very good shorting opportunity has revealed itself and Forex yearly pivot traders would take special note of this level.
On the other hand, look for a break below the 2014 low of 0.8659 for a move down to the S1 yearly Pivot at 0.8289. The downtrend would have shown itself strong and we could eventually see a test of the S2 yearly pivot at 0.7666.
Remember, Aussie is prone to large retraces that look like reversals. If the pair is not trading above the October 23, 2013 high of 0.9756, then such moves higher should be treated as opportunities to short at better levels. It may take a little time and patience for price to hit yearly forex pivot levels, but the reward may be worth the wait!
While EURGBP isn’t a pair we typically enjoy trading, sometimes a structure is presented that’s just too hard to ignore. Today, we see a potential trade that’s based on analysis from both the daily and hourly time frames. Together, they provide an opportunity to try to buy a “bottom,” which is, admittedly, a perennially dangerous task in itself.
the trade is to buy EURGBP at 0.8265 (or lower), placing a stop at the low of blue wave ii (0.8185). For this 80-pip stop, we’re not setting a target at this time, but we’re potentially looking at hundreds of pips, and as a result, this trade will take many weeks to complete.
The risk profile is very good, but there is real risk in this trade. EURGBP has fallen 600 pips over the last six months, and it takes some audacity to try to call a bottom. If price continues higher, though, we will look to add to this in time.
Long Set-up for EUR/GBP
Trade: Buy EURGBP at 0.8265 (or lower) Stop Loss: Place stop at 0.8185 Target: Open (for reasons discussed above)
Crude oil is now at the upper side of a weekly trading range, approaching 95.58 region but a triangle that we are tracking suggests another pullback down to 96.50/80 trend-line before pattern can be complete. This would then be ideal scenario, but in any case we believe that sooner or later new swing high will occur.