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.

Gold – Technical Vs Fundamental Analysis

Fundamental Analysis

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.

Industrial Profit for Chinese firms, Political tension in Syria and Italy and Economic data is in Focus

Industrial profit for Chinese firms failed to push Europe higher European stock markets are trading lower during the early hours of trading. Investors have  congregated their momentum from the Asian trading session where all of the indices closed lower with the exception of Shanghai . The index managed to score some gains on the back of the…

USD/JPY- A bullish pattern has formed

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.

EUR/USD- Symmetrical triangle formed

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.

USD/JPY- Broken its Upward channel but uptrend still strong

The USD/JPY pair has broken its upward channel on a 30 minute time frame. However, the price is still trading above the 50 day (shown in green) and 100 day (shown in yellow) moving averages which confirms that the bulls are still in full control of the price action. The volatility for the pair remains low as the price is trading within the Bollinger band and close to its 20day moving averages.

GBP/USD- Fell from its Resistance as predicted- What Now

The GBP/USD pair fell from its resistance on a 30 minute time frame as predicted. This resistance zone was given in our analysis on 16th of August.  The pair has also broken its upward trend line which confirms that the upward trend has lost its momentum and this trend line may act as a resistance line. However, the price is trading above the 50 day (shown in green) and 100 day (shown in yellow) moving averages which confirms that the bulls perhaps are stepping back in and taking the control.

European market are set to close lower for the week

Asian markets closed mix on the final trading of the week. Investors cheered the rebound on Wall Street yesterday and the German economic data firmed bull’s strength in the market. However, traders are still concerned that the Fed’s tapering program could trigger outflow of funds from the emerging markets.  If the tapering does takes place this could certainly result in re pricing of the treasury yield and the 10 year yield could increase further by almost 2%.

EURUSD ahead of FOMC Minutes @ 6PM GMT

After one month of steady decline, the Dollar seems to be finding strength versus the Euro ahead of the release of Federal Reserve minutes this evening.  Investors are anticipating the minutes will shed further light on September tapering, signalling an end to the supply of cheap dollars, which global emerging market currencies have relied on…