Markets are indecisive this morning as the G7 meeting in many ways delivered on the expectations of traders with participants failing to find meaningful progress and the US marginalized in what has been dubbed the G6 +1 meeting. With the US rejecting the communiqué as predicted, the market is directionless and focusing now on the […]
The cautious tone dominated in markets on Friday. Asia’s stock markets lost about 1%, and the S&P 500 futures are now losing 0.5% to Friday’s closing level. The main reason for this is the increased investors’ concern caused by the Fed policy. Markets do not doubt that next week FOMC will raise the rate by […]
• Soy broke support zone • Further losses are likely Soy recently broke through the support zone lying between the levels 9.900 (which has been reversing the price from the start of April), 9.700 (monthly low from February) and the support trendline of the wide weekly up channel from 2017. The breakout of this support […]
The Japanese Yen (JPY) is strengthening against all major currencies today as risk appetite appears to diminish. Yesterday, the US 10 Year Treasury yields fell sharply as investors shifted to safer assets amid growing concerns about emerging market risk. Moreover, Japanese economic data remains disappointing with today’s release of Q1 GDP showing growth down 0.2% […]
German 30 The German 30 Index has been under the cosh this week and has lagged the rally in equities as the Euro has prohibited it from making headway. The economic data has also dragged on the index and paints a less than positive picture for Europe. Finally the ECB has made comments concerning the […]
• AUDJPY reversed from resistance zone • Further losses are likely AUDJPY recently reversed down from the resistance zone lying between the strong resistance level 84.60 (which has been reversing the pair from February), upper daily Bollinger Band and the 50% Fibonacci retracement of the previous sharp downward impulse (C) from January. The downward reversal […]
Mexican Peso The Mexican Peso (MXN) has continued to weaken as uncertainty over an update of the North American Free Trade Agreement (NAFTA) continues. White House economic adviser Larry Kudlow has reported that President Donald Trump is considering separate trade talks with Canada and Mexico. Moreover, focus remains on the country’s election as the leftist […]
• Wheat reversed from support zone• Further gains are likely Wheat recently reversed up from the support zone lying between the round support level 5.000 (which also reversed the price at the end of May) and the 38.2% Fibonacci retracement of the previous sharp upward impulse from the end of March. The upward reversal from […]
• EURCAD broke resistance zone • Further gains are likely EURCAD recently broke the resistance zone lying between the key resistance level 1.5200 (which has been reversing the price from the middle of May) and resistance trendline of the daily down channel from March. The breakout this resistance accelerated the active medium-term impulse wave (1) […]
The US 30 index has broken out of its bull flag on Monday and extended higher into resistance at 25240.00 today. There are a lot of conflicting stories that the market is choosing to ignore such as trade tension and forward guidance against beats on earnings and better economic data. The breakout was retested on […]
While the “Risk On” rally continues in global stocks the Chinese markets are lagging behind over fears of trade tensions and high levels of maturing debt. In stark contrast US markets were higher adding to the gains made in the Asian session over the last four days. European markets are trying to make up lost […]
• Copper broke resistance zone • Further gains are likely Copper recently broke the resistance zone located between the key resistance level 3.180 (which has been steadily reversing the price from the start of March) and the 61.8% Fibonacci correction of the previous downward correction from the end of December. The breakout of this resistance […]
The Euro is strengthening after comments by ECB speakers have hinted that the central bank may look to announce an end to Quantitative Easing (QE), possibly as early as at the June meeting. Coordinated comments made by Praet, Hansson, and Weidmann all indicate a potentially upbeat projection by the ECB with inflation rising back to […]
• EUR/USD broke resistance zone • Further gains are likely EUR/USD recently broke the resistance zone lying between the resistance level 1.1720, resistance trendline of the daily down channel from April and the 38.2% Fibonacci correction of the previous downward impulse from the middle of April. The breakout of this resistance zone should strengthen the […]
The private Oil data yesterday showed an unexpected draw in inventories of -2.028M and we await data this afternoon to support that view. There is also Canadian Trade, Building Permits and PMI data being released today. USDCAD advanced to trend line resistance yesterday where sellers forced price down creating a pin bar on the 4 […]
The GBPJPY pair is retesting is rising trend line resistance today at 147.842 which is also the level of its 200 period MA in this 4 hour chart. There has been a spectacular selloff from the 150.000 level all the way to support at 143.184 and a recovery to current price. Resistance comes in at […]
The news broke overnight that Steve Mnuchin had urged the President to give Canada an exemption from the Steel and Aluminium tariffs. USDCAD had already sold off from its high of 1.30657 but extended the move and is now trading around 1.29300. Whether Canada gets a pass or not remains to be seen but traders […]
• Brent Crude Oil broke support zone • Further losses are likely Brent Crude Oil continues to fall after the earlier breakout of the support zone lying between the key support level 75.00 (former resistance level from the end of April) and the 61.8% Fibonacci correction of the previous sharp upward impulse from the start […]
The Australian Dollar (AUD) dripped after the Reserve Bank of Australia (RBA) held its interest rate steady at the record low of 1.5%. The RBA is waiting for signs of wage growth which should improve consumer spending and support inflation. The RBA statement comes after a data release yesterday showing Australian retail sales rising faster […]
• NZD/USD rising inside impulse wave (3) • Further gains are likely NZD/USD has been rising in the last few trading sessions inside the impulse wave (3) which started earlier from the support zone lying between the major support level 0.6850 (which has been steadily reversing the price from the end of 2016) and the […]
GBPUSD The GBPUSD pair has dropped into support at 1.32000 and rallied out last week to touch the high at 1.33982 close to the 1.34000 level. This sets up a 200 pip trading range for the moment. The topping pattern that formed in February to April has a target of approx. 1.30600 so there is […]
Yesterday’s session was quite after a pickup in volatility last week and there has been little in the way of movement overnight. This is despite some negative headlines that possibly sapped some of the market strength over the last 24 hours. Crude Oil has continued to fall with WTI reaching $64.50 as supply increases and […]
• AUD/CAD rising inside impulse wave (3) • Further growth is likely AUD/CAD continues to rise inside the medium-term impulse wave (3), which previously broke through the resistance zone lying between the major resistance level 0.9850 (which reversed earlier waves 4 and (1)) and the 38.2% Fibonacci correction of the previous downward price impulse from […]
US equities ended last week higher after a stronger than expected jobs report. The risk-on sentiment is set to continue today even though the world’s two largest economies are on track to commence a $100bn trade war after China-US trade negotiations ended on Sunday. However, geopolitical concerns regarding North Korea have subsided as US and […]
AUDUSD The AUDUSD pair has been boosted today by better Australian economic data leading to a move up to resistance at the descending Blue trend line at 0.76425. A retest of this trend line confirms the area as resistance and price has now initially pulled back away from the line. The level has been used […]
The new week begins much the same as the old one ended, with markets in risk on mode, equities markets higher, while gold moved down. The USD is weaker against all currencies expect the yen. The mood is mainly positive due to better US job creation seen in the NFP data which has carried stocks […]
• Sugar broke resistance zone • Likely to rise further Sugar continues to rise inside the impulse wave C, which previously broke through the resistance zone lying between the key resistance level 0.125 (which reversed earlier waves (iv) and (i)), 100-day moving average and the 50% Fibonacci correction of the previous downward impulse from February. […]
Trading today will be dominated by the release of the US employment report which is expected to show a modest growth in jobs and wage inflation. Non-Farm Payrolls numbers for the month are expected at 188K while Average Hourly Earnings are expected to have grown to 0.2% month-on-month from a prior 0.1%. It would take […]
• EUR/JPY reversed from support zone • Further gains are likely EUR/JPY recently reversed up sharply from the support zone lying between the major support level 125.00 (former key resistance level from May and June of 2017), support trendline of the daily down channel from February and the lower daily Bollinger Band. The upward reversal […]
EURJPY The EURJPY pair is at an interesting spot today, retesting the broken black support trend line as resistance at 127.792. The implication here is that a failure to break back higher will drive price to new lows. After falling below the 127.000 area on Wednesday price entered a barren zone on the chart where […]
