AUSDUSD: In afternoon remarks, People’s Bank of China Gov. Zhou Xiaochuan said he believes the Euro zone’s challenges can be solved, endorsing measures taken by the European Central Bank. He added China has consistently invested in euro assets and will further increase its holdings. Zhou made the comments at an exhibition that was also attended by European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso.
Further helping the local currency, the International Monetary Fund told Dow Jones Newswires in an interview that the Reserve Bank of Australia needs to be very careful about any future policy easing.
We expect a range for today in AUDUSD rate of 1.0630 to 1.0710 (Yesterday, we set a short position at 1.0750, the pair reached low below 1.0700, we suggest it time to book profit, or else bring stop loss to 1.0710 from 1.0810 if you intend to target further!
PREVIOUS WE SHORTED AUDUSD AT 1.0750 AND CLOSED BELOW 1.0700
EURUSD: At that time, a fresh boost of liquidity, delivered via the European Central Bank’s next round of three-year loans to banks at low interest rates, could reignite the fire. And if that plays out, it could provide a broader signal that investors are willing to venture away from safe harbors such as Treasurys.
In recent months, emerging markets have offered a good gauge of global investor risk appetites–both during the sharp downturn they suffered as fears of wide fallout from the euro zone crisis grew late last year, and in the rapid rebound they saw in January.
We expect a range for today in EURUSD rate of 1.3080 to 1.3160 (Yesterday we limit BUY order for EURUSD at 1.3035, we re-order our limit BUY again today)
We set limit BUY order for EURUSD at 1.3035 ranges
Stop loss at 1.2990
Target at 1.3080 and 1.3130
USDJPY: Earlier this year, investors and market players had put aside such concerns after the first round of liquidity injections by the ECB. This, followed by the U.S. Federal Reserve’s indication that it would keep interest rates at the current low levels until 2014, facilitated a sharp resurgence in investors’ confidence, leading them to take on risk and put money to work.
Emerging market assets were a recipient of this largesse. Fund flows into emerging market bond funds hit $3.8 billion as of Feb. 10, compared with $2.7 billion at the same time last year. Emerging market equity funds, which some investors are now using as a way to get exposure to the local currency, received $17 billion compared with $11.4 billion last year
We expect a range for today in USDJPY rate of 78. to 78.60 (Yesterday, we shorted USDJPY at 78.40 and decide to close out the trade 78.39)
WE AVOID TRADING THE PAIR TODAY!
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