Nice bullish flag pattern for Gold. We have a very strong uptrend which has consolidated nicely. It looks like a breakout may be imminent. In fact, due to the tumult in the market and currencies, I am surprised we have not seen it earlier. Perhaps it will capitulate at 2PM tomorrow with the FOMC minutes.
In " Gold Leaps Higher as Worries Mount ," I briefly pointed out how those very same institutions that championed quantitative easing policies implemented by the Federal Reserve are now coming out to proclaim quantitative easing added no substantial benefit to the real economy . Gold was pushed lower on the assumption that central banking policy would all pan...
Hi All! As I did back in August with the september meeting, I have decided to create a possibility of different Scenarios for the EURUSD pair for the month of December. I have outlined 3 scenarios based on the price range seen and recheable so far this year, this would give you a good idea of where to buy, sell or hold positions if you are thinking about trading...
Commodity currencies (AUD, NZD, CAD) underwent a short-squeeze following the Federal Reserve's decision to leave rates from zero-to-25 bps, which is theoretically more supportive for commodity speculation. However, after market participants digested the ultra-dovish FOMC, commodity currencies got monkey-hammered lower. AUDUSD was pushed higher to .7276 on Friday,...
FED leaves the rates unchanged at least for a while. Emergency meeting might be called if inflation picks up to 2%. Watch oil prices in coming months. 1.14 good area to sell. Why? Psych level. 50% pullback from the recent top @1.16 Massive downside potential. How? Sell marked area after tomorrow London's open. Risk? 2% of equity. SL: 50 pips Hedge? Binary...
The price for crude has not only been lower longer than many analysts foreseen, but prices have been volatile. With the Crude VIX (a measure of crude price volatility) well above historical range, four to five percent price swings are almost common place. The crude VIX (blue line) broke through multi-year highs as West Texas Intermediate crude fell through $65...
In 8 hours we will witness the perhaps most anticipated news event in Forex of 2015 so far. The FED will communicate their rate decision, accompanied by a written statement, economic projections and a press conference. The Dollar is fundamentally the strongest currency due to the expectation of a rate hike this year. This sets it apart from currencies like the...
AUDNZD triangle/pennant offers a trade removed from direct FOMC influences over the next few days. Longs are eyed above 1.1305 with a stop below 1.0895. Shorts are eyed below 1.0895 with a stop above 1.1305. Daily momentum indicators (Stochastics, MACD) are starting to align bullishly in concert with the weekly timeframe.
Some say this week's FOMC decision will be of historical proportions and be the first time the Federal Reserve will increase the Fed funds rate in almost a decade. The U.S. dollar index is in a descending trend. Price action is floating above the minor trend created by the top on April 13. The dollar has not been able to see any significant support higher,...
Following the FOMC minutes on Wednesday, gold has seen a massive two day move that brought the precious metal to five-week highs. Worries mount as market participants are beginning to realize that the Federal Reserve is stuck within a liquidity trap. The minutes statement indicated that the Fed saw risks to near-term inflation (as the five-year breakeven rate hit...
Today should be a very important day for the EURUSD as we have both CPI and FOMC Meeting minutes coming out for the USD at 8:30am & 2:00pm (NY) respectively. Like many pairs as of late the Euro is currently at a spot right between structure levels where I have neither buying or selling interest. Hopefully today’s releases will push price action to either support...
Running Alpha Capital Markets observes that higher rates are not always a headwind, as the not too distant record shows that the electric utilities group can outperform and offer a margin of safety. During the last period of higher rates, from mid 2004 to mid-2006, the FOMC hiked rates 16 times, and despite these incremental actions, electric utilities actually...
This is a follow up and an expansion on our GBPUSD chart posted last week (see link to related ideas below). The recent rejection of $1.5660/1.5700 has resulted in a loss of the uptrend from the July 8, 9, and 24 lows. In context of the potential longer-term pattern - a bearish rising wedge that commenced with the break in price on July 7 and subsequent...
Talking Points: GBPUSD Technical Strategy : Bullish Support: 1.5475, 1,5357, 1.5250 Resistance: 1.5635, 1.5675, 1.5780 GBPUSD had a beating from BOE, but we still believe there is one pending leg up before it’s turn bearish. Currently pair broken bullish daily trendline but supported by bearish weekly trendline. We are expecting range trading between...
A few weeks ago I made a very controversial call on the USDCAD looking to go long despite a major level of resistance and an advance pattern on the higher timeframe. (You can see the video explanation of that trade here www.youtube.com) Well after finally being taken out for the remaining part of my position Canada has come back to a level that looks prime for...
In last night’s video we talked about Wednesday being a busy news day and how one of the major releases to keep an eye on was the GBP Average Hourly Earnings. Well, waking up and seeing big spikes in the GBP pairs I can assume that this number came out better than expected. I’ll make my news rounds after getting this post out to you. Now before we get into the...
EURCAD Hi everyone this is a possible trade. Few of the reasons that makes this setup look good. First being at the previous support, trendline and the pattern itself. Lets see how it plays out and Good Luck :)
The USD sell off as traders set a chain of profit taking after 2 weeks rally due to various factors: - Greece uncertainty of exiting the EZ make holding USD worthwhile - US Economic data has been promising with CPI much higher - Hawkish comment from Yellen - That view is changing with 5th of June looming for a potential deal and no Grexit A lower USD...