USD/JPY- Bounced from its support as predicted

The USD/JPY pair has bounced from its support zone on a 30 minute time frame as predicted. This support zone was given in our analysis on 26^th of August. The price has broken the upward channel which confirms that the upward trend has become weaker. Moreover, the price is trading below the 50 day (shown in green) but above the 100 day (shown in yellow) moving averages which is a further confirmation of the above argument. The volatility for the pair remains low as the price is trading within the Bollinger band and close to its 20 day moving averages.

Fundamental Analysis – Unemployment Rate increased and Angela Merkel’s challenges soared

On the European front, Angela Merkel’s electioneering campaign remains in full swing as the country is approaching to the full employment level. German unemployment numbers released today increased unexpectedly by 7K, while the forecast was a decrease by 5K which has pushed the euro lower. This has certainly created more challenges for Angela Merkel who is trying to convince Germany that she is the best person to run the country. Having said that, it is a fact that there is no recession in the country and thanks to Angela Merkel and her policies which has pulled the country out of a recession on the path of a stronger growth because, let’s not forget that Germany certainly has a spill over effect for rest of the Europe.

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Technical AnalysisBy sharptrader

Gold- Fundamental Vs Technical Analysis

Fundamental Analysis – Preliminary GDP data would fuel taper talk

Tapering talk, which is so far heavily influencing the price of the yellow metal, will take further fuel when an economic data will be released this afternoon – US Q2 GDP revision. The forecast is for the upward revision for this number to 2.2% from previous reading of 1.7%. However, there are certainly doubts if such is possible, given that the recent run of poor economic data which has been coming on the weaker side.

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Technical AnalysisBy sharptrader

GBP/USD- Fundamental Vs Technical Analysis

Fundamental Analysis – Carney’s speech will be scrutinized by the market Mark Carney will be put to test once again when he will deliver his speech which is due later today. Given that the country has not only escaped its triple dip recession, but also has raised its GDP forecast, there are some serious expectations that…

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Technical AnalysisBy sharptrader

EUR/USD- Fundamental Vs Technical Analysis

Fundamental Analysis

German Elections and Angela Merkel

Angela Merkel is still on a continuous path of defending her position in the upcoming election and blamed the Greece situation on the previous chancellor by saying that such a country should never be allowed to join the euro. However, one may say if such is the situation then certainly there should be the same argument for Spain, Portugal and Italy!

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Technical AnalysisBy sharptrader

FTSE 100 – More Selling pressure could continue

The FTSE 100 index has broken its upward wedge on a 60 minute time frame. This confirms that the upward trend is losing its steam and the bias could still be to the downside. Moreover, the price is also trading in a downward channel (shown by yellow lines) and there is more pressure to the downside within this channel. The reason for this is reflected by the price by touching the lower line of this channel three times and touching the upper line of this channel only two times.

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Technical AnalysisBy sharptrader