BombayBulls

BombayBulls

Too many cross currents have made the picture for gold trading muddied. Couple of weeks ago we argued for taking the short position during the bounce towards the resistance levels of 1220 and 1240. We have taken profits on 2/3 of the position and bringing the stop for the rest to 1235. Reason is, we are losing the time symmetry on the head and shoulder pattern on...

BombayBulls

EUR/USD price actions has once again proved that too much consensus is bad thing. When every man and his dog is betting the same way then it pays to be a contrarian. When every bank and broker join the bandwagon to put EUR to parity, it was the sign of a bottom. Now when will it stop? Nobody knows but we are sure that again when banks will start recommending...

BombayBulls

God is forming ominous head and shoulder patter on daily chart. Inability to break 1220 on the top side despite favourable conditions i.e. Delayed rate hike expectations, recent streak of soft US Data has brought us on the brink of serious downside potential. Right now it's sitting near good old support of 1180 so jumping right away doesn't make sense but building...

BombayBulls

Barring any surprise, Gold price is expected to be contained within 1200 from the top side resistance and 1183 support. Gold is trading heavy and of course the bias is towards downside. But wisdom of current trading is to be open to trade it from both sides and jobbing around good support / resistance without being too greedy.

BombayBulls

As usual FOMC minutes have left us guessing and with new word to contemplate on - 'Several'. Instead of getting chopped around 1200 ( +/- 10), now we will be looking for either 1280 to get long and get few ticks or 1240 to get short and have few bucks with better probability. Here is the previous trade -

BombayBulls

For last 2 and half months USD/CAD comes near 1.2400 and bounces back. Could that be different this time?! With crude oil showing the sign of squeeze, nothing can be ruled out. Besides Fed events pushes the dollar down at least for a session or two. Today we will be looking to get long loonie if it hold 1.2350 and short if reaches 1.2550 in rush.

BombayBulls

Fed has never disappointed equity bulls and dollar bears in recent history, at least for a day ! So here comes FOMC minute again today at 2 PM EST and we are ready with levels to take on Gold. These days, trading anything with long-term direction conviction is fool's errand and one can lose money chopping around with strong, weak ( and also leaked ;) ) data. So...

BombayBulls

EUR/GBP staged a decent bounce from extreme lows of 0.7040 but failed at first resistance near 0.7400. ( We recommended shorting any bounce towards 0.7400 in previous trade idea ). Now fortunes of both currencies are undecided at the moment, EUR/GBP offers excellent opportunity to earn few pips without getting chopped into extreme volatility elsewhere. Shorting...

BombayBulls

FOMC induced bounce was short lived and gold has again selected downward path. Sharp downfall is stabilizing near 50% Fib retracement level ( 1180 ) and likely to stage a bounce. We will be looking to sell such bounce near 1200 and 1220. The best way to trade Gold in current choppy situation is to be prepared during any major data release or speaker schedule and...

BombayBulls

US Dollar Index is going to consolidate between 96.50 and 99.50 during next few days. That gives us an indication of choppy trading condition ahead. We will be looking to fade any sharp moves between these levels. Reasons are, Fed is still looking to hike the rates which gives bid to any drop in dollar and dollar has covered too much ground too quickly, which is...

BombayBulls

Silver can remain range bound for sometime between 15 and 20. Until the Fed rate hike picture becomes clear, it will ping-pong between these boundaries. First line of resistance comes in around 17.50, followed by better resistance near 18.80. We will be patient until we get the better entry point near 18.

BombayBulls

One of the most popular trade from last year is feeling the heat from strong ( or little stabilized ) Eur after FOMC. EURGBP started steep downfall of 400 pips from 0.7400 and now it is quickly approaching that zone again. Whether it is going to be a speed-bump for more recovery or it is going to halt the ascending Eur, we don't know. But it can offer few pips...

BombayBulls

Several hundred pips in either direction after FOMC has rattled the currency markets. There is no point in going all in even with the established trends like EUR/USD at the moment. Even with the bearish bias we will be careful to pick the fight at the right level. Currently looking to sell the spikes towards 1.1000.

BombayBulls

Now Fed is data dependent means Gold is also data dependent. Dovish ( or noncommittal !! ) Fed has brought some life back into the Gold. It was obvious that 'clarity' on rate rise would have sent gold tumbling towards 1100 or even lower and any timidity on Fed's part would make gold running towards 1200. From data perspective, we know or at least based on past we...

BombayBulls

USDJPY may remain comatose until FOMC but if it comes down towards 120.50 / 120 then it can provide good few pips from long side. Initially we are looking to get long near the support - 120.60.

BombayBulls

Traders will be wary to take big positions until FOMC is out of the way. We will be looking for the opportunity to fade any extreme price until FOMC. Selling near 1165 / 1170 and buying near 1145 / 1140.

BombayBulls

Canadian Dollar's fortune is tied to the Oil price and if oil puts to manage any sort of rebound today then USDCAD will most likely suffer a minor setback. In that case, we will be looking to get long near 1.2700. Better support comes in near 1.2600 but we expect 1.2700 to give us a quick trading opportunity for few pips even if it gives up. So we will monitor...

BombayBulls

Again nothing fancy here. Trend is downward and we are just looking to get better entry again. Nearby resistance is around 1170. Looking to short gold near 1170 for quick trade. Usual precautions apply and need to be nimble to take quick profits on partial position as soon as we get few bucks in our favour.