Forex Market Commentary
Its been a difficult week again global equities.
The Dow sinks once again closing at 16058.35
and -469.68 points down or -2.84% on the day session. Everyone wants to just pack up and go. Thankfully Thursday and Friday in China will be closed to give a respite to investors. overall the SSE Composite has now lost 25% of market value for July and August. Corporate earnings are expected to drop in the worst downturn in the last 25 years of Chinese economic history. hedge funds and ETF's exposed to Asian markets are really hurting with the worst monthly losses since the last 15 years. But we cannot say that the blood-letting was not overdue.
In all this mess of a global equities market the USDX is losing support at the 95. EUR/ USD is holding at the 1.13. Crude oil is seeing support at 44 because of oversold conditions and gold holds at 1130. Given the anticipated knock on effect on the real US economy it's hard to see a 50 basis point increment though 25 basis points is a de facto reality. EUR/ USD shorts are tentative at the moment until the dust settles in China
In speaking of moving averages; markets are not rational and daily price action volatile, but in the longer run trader expectation and negative sentiment can be collectively summed up through the 50 day moving average. 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
95.375 -0.551 -0.71%
Support 95.008 Resistance 96.918
Forward 1 year - 96.878s.
95.375 -0.551 -0.71%
Support 95.008 Resistance 96.918
Forward 1 year - 96.878s.
EUR/USD
1.131400 +0.006250 +0.56%
Support 1.10643 Resistance 1.13723
Forward 1 year - 1.12810s.
1.131400 +0.006250 +0.56%
Support 1.10643 Resistance 1.13723
Forward 1 year - 1.12810s.
Crude Oil WTI
44.11 -1.30 -2.70%
Support 40.18 Resistance 48.42
Forward 1 year - 51.56s.
Forward 1 year - 51.56s.
Gold
1139.99 +0.14 +0.01%
Forward 1 year - 1,139.2s.
Pieter Bergli - DeLoren Trust Holdings
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