Forex Weekly Market Rhythm | January 6, 2014

AUDUSD H4 Chart | January 6, 2014

Right!

This is a  post about weekly forex market rhythm, for January 6 2014. Because trading market rhythm is based on 'anticipation' on what the price might do in near future by watching closely what they are doing right now.



AUDUSD H4

Above is AUDUSD H4 chart, which shows many clue about the never ending fall of AUDUSD. However, the move seems to hit brake right now, and when looking at the consolidation area over there, obviously traders aren't sure where to go right now.

Above, the price met significant resistance of SMA 200 (at around 0.9015). Below, there are important support levels too. We can see it on the H1 Chart.

AUDUSD H1 Chart | January 6, 2014

EURUSD

Finally, EU lost its stand against the bear. After several brave attempts to breach 1.39, EU failed dramatically and went sub 1.36. It is running at around 1.3580 at the moment of writing.

EURUSD H4 Chart | January 6, 2014

On H4, the EU show strong downward push. These are main points from Reuters:

• Yen rises versus euro as investors take profits 
• Fed Bernanke gives upbeat assessment of U.S. economy in coming quarters 
• Euro extends slide after second-half rally

EURUSD Daily Chart | January 6, 2014

And this is the fundamental view from my friend, Rangga Cipta, an economist:

"On the first day of trading in 2014, the U.S. stock market was overshadowed by the great sell off . Early this morning the Dow Jones and the S & P 500 are both closed down 0.8 % . A few moments earlier , also marked the closing weaker in European stock markets .  

Attenuation occurs after U.S. economic data last night announced better than market expectations . Initial Jobless Claims downs , more rapid growth rate of the ISM Manufacturing and Construction Spending indicates the pace of U.S. economic recovery is excellent. 

It responded by strengthening Dollar Index was 0.65 % while the EUR/USD trimmed 0.66 %. 

However , the level of U.S. government bond yields go up tenor 10 years not follow the pace of economic optimism in general though still in a rising trend . Please note that throughout this January , the Fed will reduce the number of purchases of U.S. government bonds USD 45bln to be USD 40bln. 

Asian stock markets rose yesterday afternoon until closing sharply. Jakarta Composite Index become one of the fastest gains responds large surplus in the trade balance in November. However, there has been no significant change in the exchange rate. Exchange JISDOR BI still weakened 0:43 % to 12.242 1mth NDFs despite successful rate edged up to 12.219."