Forex Market Commentary
Today the EUR/USD broke below the 1.12 to signal that Dollar resistance is too strong above the 1.13 mark at the moment.
The Dow took a tumble yesterday dropping 178 points to close at 17966.07. With the Greeks taking the Euro zone to the brink and threatening their equities markets, and a recent US EIA report on crude inventory stocks dropping there was little encouragement for equities as the prospect of higher interest rates and commodity inflation once again became an issue of contention.
On the Euro front the major differences remaining between Greece and its creditors remain unresolved. ministers plan to reconvene this Thursday. in deadlock with the IMF too Greece wants to increase taxes increases to achieve it's balanced budget, but the IMF wants more spending cuts to curtail the governments run away financing. program. USDX stabilized at 95 and the EUR/USD at 1.112. U.S. crude stocks dropped for the 8th week in a row. Inventory now has dropped from last week by 4.9 million barrels to 462.99 million. This spells out to higher gasoline prices at the pump.
In the 4 major markets we analyze USDX, EUR/USD, crude oil and gold bullion, we have a tight range-bound channel with little opportunity at the moment for price discovery. We know that the USDX is slowing down and without the Greek hangover the EUR/USD could go through the 1.15. Crude oil is slowly creeping back up and gold bullion may increase if oil prices start to push inflationary pressure. This is no new news but already factored into pricing. What the market needs is new news to change trading sentiments.
Read on Reuters the report on rising US gasoline prices -
http://www.reuters.com/article/2015/06/24/us-energy-eia-oil-idUSKBN0P41UH20150624
and on Bloomberg today for more woe on European equities due to the Greek economic hostage crisis unfolding.
http://www.bloomberg.com/news/articles/2015-06-25/greece-setting-tone-for-europe-stocks-like-it-s-2011-crisis-days
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
95.211 -0.072 -0.09%
95.211 -0.072 -0.09%
Support 93.362 Resistance 95.954
Forward 1 year - 96.233. Low growth positive line.
Forward 1 year - 96.233. Low growth positive line.
EUR
1.120705 +0.000545 +0.05%
Support 1.10513 Resistance 1.12733
Forward 1 year - 1.12770. Low growth positive line
Crude Oil
60.28 +0.01 +0.02%
Support 58.00 Resistance 61.36
Forward 1 year - 62.70. Low growth positive line.
Forward 1 year - 62.70. Low growth positive line.
Gold
1177.650 +2.075 +0.18%
Support 1,170.3 Resistance 1,200.3
Forward 1 year - 1,175.8 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
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
