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…Read More
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!Read More
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.Read More
Durable goods order raised tapering questions again
Precious metal has topped its psychological level of $1400 and if this move can continue any further depends on some important fundaments. Bad news is a good news phenomena which has been the theme for the shining metal failed to astound investors yesterday. The final reading for the US durable goods which showed a decline of 7.3% was so dreadful that investors are even more confused where they stand on the tapering agenda and started to question the recovery in Q3. However, if the tapering will have any meaningful impact due to the dreadful durable goods number, is still a question, given that this economic data has a tendency to be extremely volatile.
The USD/JPY pair has formed an ascending triangle pattern on a 30 minute time frame. The ascending triangles usually break towards the upside and if this pattern does break to the upside it could push the price near the yellow rectangle shown on the chart. However, the price is trading below the 50 day (shown in green) and 100 day (shown in yellow) moving averages which confirm that the bulls have lost their control. The volatility for the pair remains low as the price is trading within the Bollinger band and close to its 20day moving averages.Read More
The EUR/USD pair has formed a symmetrical triangle pattern on a 30 minute time frame. The symmetrical triangle patterns usually break out in the direction of the trend and in this scenario if this pattern does break out towards the upside it could easily push towards its resistance level. The pair is trading below the 50 day (shown in green) but above the 100 day (shown in yellow) moving averages which confirms that the bulls are still in control of the price action.Read More