Global currencies are strengthening versus the dollar in anticipation of the Federal Reserve publishing the minutes of its July meeting tomorrow. As we speak, the EURUSD is up 0.72% today, hitting a high of 1.34348 at 12.30 GMT. It’s highest level in two months. The GBPUSD is also trading upwards today hitting it highest point…
NZDUSD has seen strong gains in the last two weeks since its recent low of 0.7746 (4th Aug). The pair has been trading in an upward channel since then, reaching a high of 0.81607 today (19th Aug) before pulling back sharply to its support level 0.806. The pair has bounced somewhat since then, back into…
Gold is down just over 1% for the session today ($1366 per Troy Oz. @ 18:00 GMT), but has maintained the majority of the impressive gains that it posted late last week, where it reached 2-month highs of $1385.5. Golds recent rally can be viewed from a number of perspectives; Recent overselling – pushing prices down…
The EUR/USD pair is moving towards the resistance zone on a 30 minute time frame again after falling from it which was predicted in our analysis this week. The uptrend is still strong for the pair as the price bounced before the support zone which confirms that there is enough buying pressure before this zone which reversed the direction of the falling pair. Moreover, , the price is also trading above the 50 day (shown in green) and the 100 day (shown in yellow) moving averages which confirms that the bulls are still in control.
The GBP/USD pair is trading back in the resistance zone on a 30 minute time once again. The resistance zone may not be able to hold this time as this is the second time the price is visiting this level. However, we need to be careful here as well, because a double top pattern is also forming at the same time. The double top is a reversal pattern which usually has the potential to change the direction of the trend and this pattern does have a significant importance once, it is formed in an important level of resistance.
Tapering talk is back
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 for another day. European markets ore on tract to finish the second week in a negative territory. Tapering talk has started to manifest once gain in the market despite the fact that the FOMC member James Bullard confirmed yesterday that the incoming data is not sufficient enough for Fed to to trigger the button on tapering in their next September meeting. However, investors are confused on this and perhaps want to know that if they can get a clear statement from the officials if tapering is going to take in September meeting or not.
BP has bounced from its support on a 4 hour time frame as predicted as predicted. This support zone was given in our analysis 30th of July. The volatility for the stock was high at the time as the price was piercing the Bollinger band at that level. The piercing of the Bollinger band does have a significant importance at an important level of support/resistance and it could reverse the trend or push the price back towards its mean. However, the volatility for the pair has gone back to normal as the price is back with the band and it is trading near the 20 day moving average.
The FTSE 100 index is trading above the upward trend line on a 60 minute time frame. The volatility for the index is low as the price is trading within the Bollinger band. The price is also trading within the upward channel which is shown in purple colour.
Tapering talk is back
European stock markets are trading higher during the early hours of trading. Investors have congregated their momentum from the Asian trading session where all of the indices closed up for another day. The tapering talk picked up its steam once again after last night when the FOMC member Lockhart confirmed that the incoming data is not sufficient enough for Fed to trigger the button on tapering in their next September meeting. However, he confused the investors later by saying that the tapering could take place in any of next three FOMC ‘s meeting and blamed this is due to the bumpy nature of the economic data index.
The GBP/USD pair is trading in a downward channel on a 30 minute time frame. However, the price is also trading in an upward channel on a bigger time frame which confirms that the upward trend is still in play. The price is trading near the 50 day (shown in green) but below the 100day (shown in yellow) moving averages which means that the bears are taking the control.