18th June 2015 Currency markets, news and analysis

Forex Market Commentary  

We are in the middle of one of those rare sideways trading channels where we can actually see the real present because all speculation about the future has come to a complete and utter standstill. 

Let's start with the Dow since the US equities markets are one of the prime engine and barometer of world trade. Today the Dow closed up 180 points at 18115.84 at end of session. Why? because reality is cheap money lies beyond the horizon and Uncle Sam will continue to prop up China and Europe whose slightest sniff of flu would send more shock waves than 2008 did. The Fed's fear of Chinese contagion; the market has become so big a collapse would become a global nightmare for a decade at least. So Uncle Sam must go into debt to carry the world and assure US CEO's that cheap money is beyond the horizon of 2016. Insane? Yes, that's where we are at. The game plan? Chinese consumerism eventually rises with Euro consumer demand and we can all sigh a sigh of relief as US debt then starts to dwindle. this would indeed be the greatest escape ever engineered by a Fed Chairman or Chair.

Secondly, the USDX slipped again. Why? A dearth of supportive economic reasoning and the reality is that the 25 basis points official rise in Fed Funds has already been counted into the futures markets. So the value of the Dollar from the domestic angle is coming to a grinding halt. what has not been counted yet into the equation is the Summer of 15.On the international front viz a vis the Dollar; isn't it just amazing given all the crisis of the Greek problem the USD hasn't really gained or even slipped much against the EUR but just stands still? A summit of the Euro zone's 19 leaders has been called for Monday next week to find a way to breakthrough the Greek bailout . today was an utter failure but did the EUR/ USD collapse? No, because traders have already prices the Grexit. there nothing new here to move the market if that's what momentum traders are looking for.

Crude oil is quietly creeping up on the fundamental strength of Chinese demand thans to Uncle Sam carrying the Chinese economy once again with an assurance of cheap credit. Gold is also creeping up silently because the USDx is slipping slightly day by day.

So how does a small trader make money when the markets are not moving anywhere? Quite simply a trader needs to be patient and learn to plant seeds and look to the options markets where to enter call and put positions. When a market does not move usually option writers make money selling options that will quickly deteriorate in value. However, conversely a trader seeking a direction can lose an option outlay and roll the position in the short term until an actual breakout and momentum in one direction convinces the trader to enter into the spot market once again to build position in the new direction taken.

Once again please review our small discourse on options -

http://forexeducationperspective.blogspot.com/2015/05/currency-options-trading-when-markets.html


and

For further study of options trading to hedge your currency positions please study the following platform - 

http://binary-en-option.com/

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
94.073     +0.066 +0.08%

Support 93.362 Resistance 95.452
Forward 1 year -95.877. Low growth positive line.

EUR  

1.136400     -0.001205 -0.11%

Support   1.12037   Resistance 1.14977

Forward 1 year - 1.13490.  Low growth positive line

Crude Oil  

60.79     -0.03 -0.05%

Support 59.21   Resistance  61.01
Forward 1 year - 62.46. Low growth positive line.

Gold

1184.95     +4.20 +0.36%

Support  1,181.4     Resistance 1,197.6

Forward 1 year  -  1,185.1 Low growth line.




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