5 Feb 2014
Flash: 4 majors in a race to the bottom - FXStreet
FXStreet (Barcelona) - Goncalo Moreira CMT, FXStreet Technical Analyst notes that when looking at the FXStreet Bullish Percentage Index, with the four indices below their 50% line, the yen is the one staging the most noticeable drop from a 100% level on Monday to 35% in yesterday's trading.
Key Quotes
“A break below 70% is considered a bearish signal but will be interesting to follow up at today's close if the Yen-BPI is able to print a stronger sell signal by falling below 10%. An offsetting event would be a rejection of the oversold area flagging the continuation of the yen short covering.”
“Worth following are also the breadth measures in the EUR relative to GBP for a degree of demand could be anticipated pushing the EUR/GBP exchange rate to 0.84. During the last two weeks, the Sterling has been losing strength against most other currencies computed in the index and could consolidate below the 10%.”
“The USD, in turn, has been above the 50% level since Dec 18th and has turned negative yesterday. Between 80 and 81 is where the bulk of trading in the last two months has been done. With the upper resistance being tested several times the selling pressure could give way to a break higher.”
Key Quotes
“A break below 70% is considered a bearish signal but will be interesting to follow up at today's close if the Yen-BPI is able to print a stronger sell signal by falling below 10%. An offsetting event would be a rejection of the oversold area flagging the continuation of the yen short covering.”
“Worth following are also the breadth measures in the EUR relative to GBP for a degree of demand could be anticipated pushing the EUR/GBP exchange rate to 0.84. During the last two weeks, the Sterling has been losing strength against most other currencies computed in the index and could consolidate below the 10%.”
“The USD, in turn, has been above the 50% level since Dec 18th and has turned negative yesterday. Between 80 and 81 is where the bulk of trading in the last two months has been done. With the upper resistance being tested several times the selling pressure could give way to a break higher.”