Forex Market Commentary
USD strong move today. Across the board USD marches and consequently commodities takes a tumble form crude oil to previous metals. For the last 2 weeks we have been range bound without any significant action but a vital US economic statistic came out that made the big specs take a look and leap. U.S. housing starts jumped to their highest level in nearly 7-1/2 years in April and permits soared. This is a strong indicator of economic strength when consumers are either spending in the malls or investing in new homes. It is an indicator of consumer sentiment at its very pulse. Housing demand translates into growing pressure on the long end of the forward yield curve for interest rates to rise and become an upward sloping curve from 3mth to 30 year. Economic theory teaches us that when the rate curve becomes a normal slope then the value of the currency, all other things being equal, tends to rise as international capital flies to markets where housing prices appreciate which leads to demand for USD.
Read on Bloomberg -
http://www.bloomberg.com/news/articles/2015-05-19/what-home-depot-s-results-say-about-the-economy-and-housing
On the EUR/USD specs are making a push with fresh shorts but with the ECB announcing today support with a statement that the QE program will accelerate this year then we can expect heavy resistance around the 1.11 mark. Furthermore fears on Greece abating there is strong demand for European equities to support the demand for EUR. From 1.1466 on friday EUR has lost some big ground to the USD today. Either way the 1.11 mark is going to break the back of one side of the pair because this is going to be the battleground for the next week or so that should lead to a new direction.
Read on Bloomberg -
http://www.bloomberg.com/news/articles/2015-05-19/what-home-depot-s-results-say-about-the-economy-and-housing
On the EUR/USD specs are making a push with fresh shorts but with the ECB announcing today support with a statement that the QE program will accelerate this year then we can expect heavy resistance around the 1.11 mark. Furthermore fears on Greece abating there is strong demand for European equities to support the demand for EUR. From 1.1466 on friday EUR has lost some big ground to the USD today. Either way the 1.11 mark is going to break the back of one side of the pair because this is going to be the battleground for the next week or so that should lead to a new direction.
Please note that technical data should only be used as a guide but be aware that it is the fundamental data which becomes the trigger that pushes prices into equilibrium of demand and supply.
Always look to support and resistance band lines as the key to understanding in the long and short term where prices are converging. Professional technical traders use 50 day and 200 day medium and slow moving averages as fundamental cornerstones for interpreting the direction of price action.
USDX
US Dollar
95.424 +0.118 +0.15%
95.424 +0.118 +0.15%
Support 93.591 Resistance 96.441
Forward 1 year - 96.352. Low growth positive line.
Forward 1 year - 96.352. Low growth positive line.
EUR
1.114690 -0.014775 -1.31%
Support 1.09950 Resistance 1.14130
Forward 1 year - 1.12470. Flat line.
Crude Oil
58.38 +0.39 +0.65%
Support 56.29 Resistance 61.27
Forward 1 year - 61.57. Low growth positive line.
Forward 1 year - 61.57. Low growth positive line.
Gold
1208.98 -12.30 -1.01%
Support 1,192.0 Resistance 1,232.8
Forward 1 year - 1,212.5 Low growth line.
Pieter Bergli - DeLoren Trust Holdings
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Forex market commentaries and media reports for free
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Futures and Options trading involves risks of losses. No representation is being made that any reader and account will or is likely to achieve profits or losses similar to those that are being discussed on this blog http://forexeducationperspective.blogspot.com/. The past performance of any trading system or methodology discussed is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this blog http://forexeducationperspective.blogspot.com/ are for educative and illustrative purposes only and not to be construed as specific advisory recommendations for actual trades. Disclaimer - http://forexeducationperspective.blogspot.com/ bears no responsibility for the trading actions of its readers
Pieter Bergli - DeLoren Trust Holdings
A non-profit commitment to provide education on the properties of currency markets
Forex market commentaries and media reports for free
Disclaimer - U.S. Government Required Disclaimer - Commodity Futures Trading Commission
Futures and Options trading involves risks of losses. No representation is being made that any reader and account will or is likely to achieve profits or losses similar to those that are being discussed on this blog http://forexeducationperspective.blogspot.com/. The past performance of any trading system or methodology discussed is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this blog http://forexeducationperspective.blogspot.com/ are for educative and illustrative purposes only and not to be construed as specific advisory recommendations for actual trades. Disclaimer - http://forexeducationperspective.blogspot.com/ bears no responsibility for the trading actions of its readers
