Market Commentary
US DX
94.624 -0.006 -0.01%
Interesting article here today on USA Today
http://www.usatoday.com/story/money/2015/01/28/january-fed-meeting/22448071/
In a statement after a two-day meeting, the Fed's policy making committee
upgraded its economic outlook. It cited recent "strong job gains" and
said the economy "has been expanding at a solid pace." Falling gasoline
prices, it added, " have boosted household purchasing power."
That translates into strong support for the US DX. There is a strong property element for fundamental support of the currency under pinning the longs in the market.
Support 93.902 Resistance 95.312
EUR
1.12820 -0.00510 -0.45%
Japanese Shooting Star on Yahoo Daily Chart
Please turn to the daily free yahoo finance chart and notice how on monday Jan 26th a classic shooting star emerges after several preceding sessions of a gradual descent. usually the shooting star is the precursor signal in Japanese candlestick trading to signal the formation of technical indicators for a key pattern reversal. The succeeding 2 days of trading the EUR demonstrates the cessation of short positioning and at the very least a narrow sideways channel opening up to indicate either a pause, or loss of momentum, or market indecision. More likely this is a short covering bounce as traders take some profit and give the EUR some respite since its collapse over the last few months. A market cannot slide forever and it is likely we will see more volatility and increasing intermittent patterns of short and bounce over the weeks ahead as traders tentatively nudge the EUR downwards a little more. The properties for a short trade over the longer term however remain technically in tact.
A good reference point for Japanese candlestick shapes can be found at these web pages by Steve Nison - http://www.candlecharts.com/candlestick-charting-glossary.html
Support 1.12207 Resistance 1.14347
Crude Oil
44.56 +0.11 +0.24%
Support 43.04 Resistance 46.54
Gold
1283.970 -6.605 -0.51%
Support 1,272.9 Resistance 1,301.7
Pieter Bergli - DeLoren Trust Holdings
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