EUR/USD has taken a short term turn with day traders pegging back the USD in thin and treacherous markets. But the rally looks rather faint and is more to do with large specs holding back for tomorrow' s NFP data scheduled for release on Goff Friday holidays.with little resistance the EUR broke thru the support at 1.0768 to march to the 1.08 mark. But any rally above the key 1.10 - 1.11 seems unrealistic unless of course there was a major dent to economic expectations on the NFP data. No clear sense of direction is prevalent and limit orders for longs and shorts will eventually push the price forwards since history shows NFP days on the EUR/USD tend to trade 100 - 110 pips within a few hours of data release and that could trigger limit order after limit order and build momentum to a much needed direction. Read on Bloomberg -
The overwhelming opinion is we're going for parity again but without some data nudge nobody dares move first. Oil and gold are on the rebound and trading sideways. Oil stabilizing with inventory piled up and gold with little reason to go up and down as the USD impresses as the first choice for safe haven investment, particularly with fixed income products with strong yields, benign inflation and stable economic prospects. One of the biggest points to note for crude oil is the quickening progress on Iran and nuclear energy. A potential deal has already swooned the crude oil market for fear that a lifting of embargoes could send oil prices further down as Tehran attempts to expand production for much needed hard currency earnings. With a world literally up to its neck in oil this would be a major game-changer for analyst predictions of 50 Dollars 2015 and 60 Dollars 2016. The specs may have pushed oil down from 100 Dollars to 50 Dollars but with the Iran card coming into play large specs would be faint of heart to jump into a market that should show increasing volatility as crude oil may yet sink below 45 Dollars for the remainder of 2015. Where on earth are we going to put all this oil if production keeps increasing beyond the pace of consumption? Read on Reuters full analysis -
USDX
97.573 +0.044 +0.06%
Support 96.921 Resistance 98.941
EUR
1.087655 +0.012050 +1.12%
Support 1.07043 Resistance 1.10163
Crude Oil
49.50 -0.59 -1.19%
Support 47.01 Resistance 51.33
Gold
1202.690 -0.560 -0.05%
Support 1,188.4 Resistance 1,213.6
Pieter Bergli - DeLoren Trust Holdings
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