Forex Market Commentary
USD ends the week on a strong note. But the appalling Q1 US GDP report may signal problems ahead for Dollar investors. The US economy shrank a dismal 0.7% in Q1 compared to an earlier estimate of 0.2% but much of that had been due to bad weather conditions and strong Dollar hurting US exports to blow up the trade deficit and knock off at least 1.8 percentage points from the GDP growth. Compared to a 2014 Q4 at +2.2% quite frankly Q1 15 is a horror story. Nevertheless, a negative is a negative and no matter how many ways we try to explain it the results of Q1 are an economic contraction. However fresh signs of activity in the housing sector are a glimmer of hope that Q2 should be more robust. the equities markets didn't like this report at all. the Dow took a dive to shed 115.44 points or -0.64% on the day to close at 18010.68.
EUR/USD given the current drag on the Greece agreement with the ECB there's very little hard core economic facts to hold together the support as EUR slips from 1.14 to 1.09. traders are now eyeing the Key support area that can be found at 1.0504 as the main area of defense should the USD begin to find reason to pick up steam.
Crude Oil fundamentals all point to support at 58.00 which is a far cry from the 40 Dollar range predicted in Q1.
Gold has a long term bias towards the downside as the inverse demonstration of USD growth. Key support is at the 1132.
EUR/USD given the current drag on the Greece agreement with the ECB there's very little hard core economic facts to hold together the support as EUR slips from 1.14 to 1.09. traders are now eyeing the Key support area that can be found at 1.0504 as the main area of defense should the USD begin to find reason to pick up steam.
Crude Oil fundamentals all point to support at 58.00 which is a far cry from the 40 Dollar range predicted in Q1.
Gold has a long term bias towards the downside as the inverse demonstration of USD growth. Key support is at the 1132.
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
96.853 -0.025 -0.03%
96.853 -0.025 -0.03%
Support 96.582 Resistance 97.472
Forward 1 year - 97.994. Low growth positive line.
Forward 1 year - 97.994. Low growth positive line.
EUR
1.099300 +0.003490 +0.32%
Support 1.08930 Resistance 1.10530
Forward 1 year - 1.10690. Flat line.
Crude Oil
60.30 +2.62 +4.52%
Support 56.59 Resistance 62.55
Forward 1 year - 62.60. Low growth positive line.
Forward 1 year - 62.60. Low growth positive line.
Gold
1190.55 +1.54 +0.13%
Support 1,182.1 Resistance 1,196.7
Forward 1 year - 1,194.8 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
