Global FX Economy 19th Oct 2015. Markets, news and analysis

Forex Market Commentary  

More short covering on the EUR/ USD.

Technically the EUR/ USD is still oversold and as we gradually approach the month of November we should see many hedge funds and large currency speculators to close out their weaker shorts in the market and allow short covering to bid price up gradually towards the 1.18 mark to come close to the 50% retracement of the 1.34 to 1,05 move that started last year. With no fresh news on interest rates in spite of the US economy at full employment there can be no fresh shorts in the market until the new year commences. Consequently the EUR/ USD stands at the 1,13 firmly in spite of the ECB buying bonds back at the rate of 60bn Euros per week to push the Euro currency down. Equities globally fared better after the worries of China's slowest economic growth report last Friday with the Dow leading the charge to close above the 17230.54 mark firmly.  USDX drifts down to 94 and gold holds well at 1170 with crude oil WTI futures firm at the 46 mark.


Read on Bloomberg today the continuous raging argument on US interest rates with many economists berating the US Fed for missing the chance to hike rates this year:

http://www.bloomberg.com/news/articles/2015-10-19/fed-s-williams-sees-reasons-to-increase-rates-soon-and-slowly 


 
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 
94.908     -0.009 -0.01%     
Support 94.213     Resistance 94.993
Forward 1 year - 95.259s.

EUR/ USD
1.132600     -0.004585 -0.40%
Support   1.13173         Resistance 1.14393
Forward 1 year - 1.14600s.  

Crude Oil  WTI

46.44    +0.16 +0.34%

Support 45.63  Resistance 48.31
Forward 1 year - 52.07s.

Gold

1170.415     -4.585 -0.39%

Support  1,170.2    Resistance 1,191.2
Forward 1 year  - 1,186.5s.

Pieter Bergli - DeLoren Trust Holdings

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