The markets show incipient signs of appetite for risk in the Far East hope for additional easing by both the Fed and the ECB. The foreign currencies consolidated after most of them advanced on Tuesday. Volume remains light at the end of the summer vacation. The Asian stock markets are marginally higher.
The short-term outlook for most foreign currencies is sideways. The medium-term outlook for most of the foreign currencies is sideways. The LGR short-term model is long on most foreign currencies. Good luck!
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Overnight
Today's economic calendar
- Germany: Consumer Price Index for August
- France: Business climate for August
- Switzerland: KOF leading indicator for August
- Italy: Consumer Confidence for August
- Italy: Retail sales for June
EUR – September
Luca Model: Long since August 3
The September euro is consolidating after reversing from a four-day low on Tuesday. It had marked a 1 ½-month on Thursday. The euro is trading above the 55-day exponential moving average. The euro had bottomed an over two-year low last week, but should remain under overall pressure.
The short-term outlook is sideways. The medium-term outlook is sideways and my model is long.
Initial resistance is at 1.2593. Further resistance is at 1.2705.
Immediate support is at 1.2505. The 21-day exponential moving average supports at 1.2427.
INDICATORS
Fast stochastics: Bullish
MACD: Slightly bullish
Ichimoku: Slightly bullish
OUTLOOK
NEAR-TERM: Sideways
MEDIUM-TERM: Sideways
LONG-TERM: Bearish
JPY – September
Luca Model: Long since August 22
The September
Japanese yen is edging lower after ending up on Tuesday. It remains supported by the 21-day exponential moving average. The yen remains in an inside range. It had bottomed at a five-week low on August 17. The yen is trading in a symmetrical triangle.
The short-term outlook is sideways. The medium-term outlook is sideways and my model went long.
The 55-day exponential moving average supports at 1.2672. Monday's low is 1.2556.
Immediate resistance is at 1.2780. The next resistance is at 1.2854.
INDICATORS
Fast stochastics: Slightly bullish
MACD: Sideways
Ichimoku: Sideways
OUTLOOK
NEAR-TERM: Sideways
MEDIUM-TERM: Sideways
LONG-TERM: Sideways
GBP – September
Luca Model: Long since July 19
The September pound is quiet after reversing from a one-week low. It peaked at a three-month high on Thursday. The pound had formed a medium-term peak at an eight-month high on April 30 and a bottom at a 4 1/2-month low on June 1.
The short-term outlook is sideways. The medium-term outlook is sideways and my model is long.
A medium-term top is at 1.5912. Further resistance is at 1.5950.
Immediate support is at 1.5775. The 21-day exponential moving average supports at 1.5735. Further support is at 1.5650.
INDICATORS
Fast stochastics: Sideways
MACD: Slightly bullish
Ichimoku: Slightly bullish
OUTLOOK
NEAR-TERM: Sideways
MEDIUM-TERM: Sideways
LONG-TERM: Sideways
CHF – September
Luca Model: Long since August 3
The September
Swiss franc remains firm after reversing from a four-day low on Tuesday. It had peaked at a 1 ½-month high on Thursday. It had marked a one-month high on August 6. The franc bottomed at a 19-month low on July 24.
The short-term outlook is sideways. The medium-term outlook is sideways and my model is long.
The 100-day exponential moving average resists at 1.0487. Further resistance is at 1.0590.
The 55-day exponential moving average supports at 1.0372 and the 21-day exponential moving average at 1.0350.
INDICATORS
Fast stochastics: Bullish
MACD: Slightly bullish
Ichimoku: Slightly bullish
OUTLOOK
NEAR-TERM: Sideways
MEDIUM-TERM: Sideways
LONG-TERM: Bearish
CAD – September
Luca Model: Long since June 29
The September
Canadian dollar remains firm after advancing for three days and reaching a four-month high. It's been trading in a channel rising since late July. The loonie had peaked on April 27 and bottomed at a 5 1/2-month low on June 1. It should make a mild correction through the end of the week before the next move higher.
The short-term outlook is sideways. The medium-term outlook is bullish and my model is long.
A pivot high is at 1.0168. Further resistance is at 1.0205.
Immediate support is at 1.0080. The 21-day exponential moving average supports at 1.0054. The next floor is at 1.0010.
INDICATORS
Fast stochastics: Bullish
MACD: Bearish
Ichimoku: Bullish
OUTLOOK
NEAR-TERM: Sideways
MEDIUM-TERM: Bullish
LONG-TERM: Sideways
AUD – September
Luca Model: Short since August 27
The September
Australian dollar remains sidelined after closing off a one-month low. The Aussie is trading below the 21-day exponential moving average. It's been trading a short-term channel declining since August 9. The Aussie, which has been advancing since June 4, peaked at a new high for the uptrend on August 9.
The short-term outlook is sideways. The medium-term outlook is bullish but my model is short.
The 21-day exponential moving average resists at 1.0411. The next cap is at 1.0523. The top of the uptrend is 1.0578.
Initial support is at 1.0295. Further support is at 1.0125.
INDICATORS
Fast stochastics: Sideways
MACD: Slightly bearish
Ichimoku: Sideways
OUTLOOK
NEAR-TERM: Sideways
MEDIUM-TERM: Bullish
LONG-TERM: Sideways
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*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.