8th September 2015 Currency markets, news and analysis

Forex Market Commentary  

Markets surge after US Labor Day on Tuesday.

Global equities have a stormer as this merry-go round of global equities finds fundamental reasons to surge now that the China equities crisis seems to have seen the worst.

The Dow climbed +390.30 or +2.42% to close at 16492.68 whilst European and Asian equities sprung into positive territory to close up as the catch-word of the day rings a truism globally - Oversold!

US traders back form holidays are now looking ahead to next weeks FOMC meeting and that can be anybody's guess. A tightening of rates as expected may send the USD up further against a basket of currencies whereas dovish inertia may lead to it's slide. Consequently large traders will not be seeking to take positions until the pivotal September FOMC occurs. Q3 data is likely to become the water-shed for this year. The EUR/ USD has benefited recently from the global equities turmoil and may find itself with less reasons to slide significantly albeit interest rate fundamentals between the USD and Euro should come in favor of the USD. Crude oil will benefit from the coming stability; the Chinese equities markets already having gone through the worst and gold bullion may continue to slide until physical demand picks up as with tradition near the year end.


Read on Bloomberg how increased volatility is shaking up global markets:

http://www.bloomberg.com/news/articles/2015-09-08/market-volatility-has-changed-immensely 

and on Reuters crude oil surges but for how long?

http://www.reuters.com/article/2015/09/09/us-markets-oil-idUSKCN0R903W20150909 
 

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
96.096     +0.237 +0.30%
Support 95.230     Resistance 97.100
Forward 1 year - 96.998s.

EUR/USD
1.117085     -0.002370 -0.21%
Support   1.10367          Resistance 1.12567
Forward 1 year - 1.12460s.  

Crude Oil  WTI

46.12     +0.18 +0.41%

Support 44.68  Resistance  47.92
Forward 1 year - 50.97s.

Gold

1124.40     +0.72 +0.06%

Support  1,106.2    Resistance 1,139.4
Forward 1 year  -  1,126.3s.

Pieter Bergli - DeLoren Trust Holdings

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