8 Mar 2016

EURUSD Edged Higher Bouncing Off and Crude Oil Jumped After the US Opening

EUR/USD 
EURUSD edged higher bouncing off of support near the 10-day moving average at 1.0950. The currency pair is likely to consolidate until the ECB meets and the markets are able to absorb the new information. This came following a worse than expected sentiment report. Resistance is seen near the February high at 1.1375. Momentum remains negative as the MACD index prints in the red with a downward sloping trajectory. The RSI turned higher with price action reflecting accelerating positive momentum, while printing a reading of 50, which is in the middle of the neutral range. 
GBP/USD
GBPUSD initially fell during the day on Monday, but turned back around to form a very positive candle. The hammer suggests that we are going to go higher, but the biggest problem that we have us going long of this market is not only is in a bit overextended at this point in time, but we do have quite a bit of noise just above. Because of this, we are going to simply sit on the sidelines in this particular market. While we do recognize the potential for a move higher, the reality is that it is going to be a very hard trade to hold onto.
AUD/USD
AUDUSD continued to break higher during the course of the day on Monday, testing the 0.75 level. If we can break above there, we should continue to go much higher, but quite frankly we are a bit overextended at this point so we will have to wait to see whether or not a pullback occurs that we can take advantage of as it would offer value in what is obviously a massive break out to the upside. We have no plans to sell at this point in time, and believe that the trend has turned around.
USD/JPY 
USDJPY fell just a little bit during the course of the session here on Monday, but we are still very much in the way of consolidation, so having said that it is probably best to sit on the sidelines when it comes to this market. Quite frankly, the easiest trade in this market is to buy above the 115 level, as it would show a significant breakout above resistance. At this point in time, that’s essentially what we are waiting for and as a result will be hesitant to get involved at this point in time.
GOLD
Gold market took a positive move for the beginning of the week and showed the potential of the buyers as the previous candle was a Doji and we were expecting the market to go down but the interest of the buyer lead the price of yellow metal to 1273 handle now looking at the chart we are waiting for the price to break the resistance and open a new range of profit booking.
Forecast
We need to wait for the price to break the 1273 handle and this can lead to 1293 levels where the lower side support can be placed at 1259.
CRUDE
Crude oil was already moving in a gap up pricing, after all day consolidation the prices again jumped after the US opening and broke the $ 37 handle this lead to the main change in the price and trend of the crude oil. Now we find the major resistance at $ 38.25 if the buyers lead the market then we have a wide range to cover at part of profit.
Forecast
Buying in oil after $ 38.50 can lead the price for $ 41.00 where on the lower end we can wait for the price of $ 35.00

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