• Cotton reversed from support area • Likely to rise further Cotton recently reversed up from the support area lying between the key support level 0.8200 (which stopped the previous minor correction 2 in May), lower daily Bollinger Band and the 61.8% Fibonacci correction of the previous upward impulse from February. The upward reversal from […]
A “Goldilocks” US jobs report on Friday created positive sentiment and boosted US equity indices. The jobs report showed solid growth with little underlying inflation pressures and so the market is not expecting faster rate hikes from the Federal Reserve. Moreover, the US stock market investors appeared to show little concern about the developing trade […]
GBPCAD The GBPCAD pair is moving higher this morning after UK’s Brexit Secretary resigns overnight ratcheting up political pressure on Theresa May’s government. The 1.74420 level is being tested as resistance with a break above this area testing 1.74617 followed by the 1.75000 area. A move higher would look to the 1.75540 zone with the […]
The UK’s Brexit Secretary David Davis has resigned along with two junior ministers, Steve Baker and Suella Braverman, over PM May’s latest softer Brexit proposals that were agreed at a cabinet meeting over the weekend. He said in a statement that his role requires an “enthusiastic believer” in May’s approach rather than a “reluctant conscript”. […]
The US employment report for June exceeded any possible expectations. Payroll employment increased by 213K against expected 195K, moreover, the growth in the previous month was revised from 223 to 244K. It is not necessary to worry about unemployment rate growth from 3.8% to 4.0%, as it occurred along with the growth of the participation […]
• EURUSD reversed from support area • Likely to rise further EURUSD recently reversed up once again from the support area lying between the multi-month support level 1.1550 (which has been reversing the price from start of November) and the lower daily Bollinger Band. The upward reversal from this support area created the daily Japanese […]
• Brent Crude Oil reversed from resistance area • Likely to fall further Brent Crude Oil recently reversed down the resistance zone located between the strong round resistance level 80.00 (which stopped the price in May and June) and the upper daily Bollinger Band. The downward reversal from this resistance area created the daily Japanese […]
The major economic data release for today will be the U.S. Non-Farm Payrolls (NFP) and Average Hourly Earnings. The US economy is expected to add another 195K jobs in June with hourly earnings growing to an annualized 2.8% from 2.7% in May. The stronger growth should keep the Federal Open Market Committee (FOMC) on course […]
The US 500 Index has moved higher overnight but has now retraced some of this move on the run into Nonfarm Payrolls data. The US/China Trade Tariffs went into place overnight with minimal market reaction. The market is awaiting confirmed reports on the tariff process with one eye on economic data. The price has consolidated […]
The EURUSD pair is moving back higher after reaching a 3 week high at 1.17264 today and testing its 200 period MA in a 4 hour timeframe. The price has been consolidating between 1.17200 and 1.15100 since it dropped after the ECB meeting last month. A break higher would seek to retrace that move and […]
The FOMC minutes highlighted some increased risks to the US economy particularly concerning trade relationships but the view still holds that the Fed should and will stick to its path of rate hikes with another two hikes being the consensus for 2018. The path of rates hikes will continue into 2019 with the Fed achieving […]
• GBPCHF reversed from support area • Likely to rise further GBPCHF recently reversed up from the support area lying between the key support level 1.3060 (which has been reversing the price from end of May), lower daily Bollinger Band, support trendline from October and the 59% Fibonacci correction of the upward impulse from 2017. […]
• Silver reversed from pivotal resistance level 16.10 • Likely to fall further Silver recently reversed down from the pivotal resistance level 16.10 (former powerful support level, which has been steadily reversing the price from the start of February, as can be seen from the daily Silver chart below). The downward reversal from this resistance […]
The British Pound is in focus this morning after The Bank of England (BOE) Governor Mark Carney gave a speech where he suggested that the soft patch in the first quarter was due to the weather and not the economic climate. He also added that inflationary pressures are gradually building, domestic cost growth has continued […]
USDCAD is consolidating and building energy as liquidity conditions were tight this week with the Canada day holiday on Monday and US Independence day yesterday. The price is confined to a tight range around 1.31450 with resistance at 1.31755 and the 100 period MA followed by 50 MA at 1.31967 and the 1.32000 level. A […]
The EURGBP is trading at its 50 period MA in a 4 hour time frame at 0.88235 after it reversed its fall from yesterday this morning to reach 0.88411. This was on the back of reports that some members of the ECB are of the opinion that hiking in the autumn of 2019 will be […]
The markets remain subdued after yesterday’s 4th of July celebrations in the US. Despite this Oil headlines are dominating the markets once again. US President Trump has restated his call for OPEC to bring down the price of gasoline. He recently backed Saudi Arabia to increase production after he targeted Iran with tougher than anticipated […]
• GBPUSD reversed from long-term support level 1.3070 • Likely to rise further GBPUSD recently reversed up from the long-term support level 1.3070 (which has been reversing the price from October of 2017, as can be seen from the daily GBPUSD chart below). The support zone near the support level 1.3070 was strengthened by the […]
• Copper broke support area • Likely to fall further Copper recently broke through the support area lying between the key support levels 2.940 (which stopped the previous sharp corrections (4) and (A) in December and March, as can be seen below) and 2.880 (low of waves B and (2)). The breakout of this support […]
Turkish Lira Turkish consumer price inflation jumped to 15.39%, a 14 year high and drove the lira lower and has put the central bank under pressure to raise interest rates again. Turkey’s Central Bank (CBRT) has raised interest rates by 5% since April in an effort to halt the sharp decline in the country’s currency […]
Mexican Peso The Mexican Peso (MXN) has surged on improving sentiment as Andres Manuel Lopez Obrador, the country’s next president spoke with President Trump about border security, the North American Free Trade Agreement (NAFTA) and a potential bilateral trade deal. Lopez Obrador calmed nerves by repeating his pledge to maintain fiscal discipline and respect private […]
The gold chart has played out as a double top with a break under 1300.00 signalling a move down to 1240.00 from its highs at 1365.00. We have now hit the 1240.00 target area and some profits have been taken here with buyers stepping in to drive price higher. With 1240.00 broken support was found […]
The GBPUSD pair has bounced back to its 100 period MA at 1.32273 from its low of 1.30493 last week. We now have support at the 50 period MA at 1.31841. The next level of support is 1.31024 which is an important area for traders who are trying to keep price moving higher. A loss […]
The AUDUSD pair has moved higher to its 50 period MA today at 0.73875 after the RBA decided to maintain rates at 1.50%. The tone of the statement was neutral and the AUD moved higher towards the 0.74000 level. The support for the move came from yesterday’s low at 0.73099 and price was able to […]
On a holiday shortened trading day the tones coming from the last 24 hours of trading have suggested a risk off attitude as Gold finds support around the 1240.00 area and Equities pare some of Monday’s gains. The Japanese Yen gained a little against the dollar as the US currency weakened a little against the […]
• AUDNZD broke resistance area • Likely to rise further AUDNZD continues to rise after the earlier breakout of the combined resistance area lying at the intersection of the resistance level 1.0940 (which stopped the previous sharp upward impulse wave (1) in May, as can be seen from the daily AUDNZD chart below) and the […]
• Gold reversed from support area • Likely to rise further Gold recently reversed up from the support area lying at the intersection of the major support level 1240.00 (which reversed the previous sharp downward corrective wave (2) in December, as can be seen from the daily Gold chart below) and the lower daily Bollinger […]
The cryptocurrency market has stated the second half of the year with a rally and market capitalisation standing at $273bn. Last week Bitcoin dropped below $6000 as market sentiment remained negative but after the expiration of CME futures contracts the cryptocurrency rallied 12%. Sentiment was improved recently as the US Securities and Exchange Commission (SEC) […]
The RBA left rate on hold at 1.5% for Australia saying that inflation is likely to remain slow for some time, household consumption remains a source of uncertainty while low wage growth is likely to continue for some time. AUDUSD moved up from 0.73299 to 0.73607 and continues to climb as a result. US WTI […]
• NZDCHF broke long-term support level 0.6720 • Likely to fall further NZDCHF continues to fall after the earlier breakout of the powerful, long-term support level 0.6720 (which stopped the previous sharp downtrends in May and November of 2017, as can be seen from the daily NZDCHF chart below). The breakout of the support level […]
