Global FX Economy 1st Oct 2015, Grinding Sideways. Currency markets, news and analysis.

Forex Market Commentary  

Gruesome, grinding sideways channel.

The average day trader will sit there waiting for a news release and hope for a 100 pip momentum burst to catch the wind and ride an easy profit. But those events are few and far between. In a gruesome, toiling sideways trading market the average day trader and swing trader is  likely to lose his position through a misfire and in reality the only winners are the smart professionals who write call and put options and collect premiums whilst their options rapidly decay in value over time. Straddles, strangles, butterflies; in a market where the EUR/ USD constantly waivers between the 1.10 and 1.14, the options writer becomes the real winner and those that purchase options for any other reason other than a hedge is usually faced with a rapidly eroding asset value. Currency options trading has often been trumpeted as a safe way to trade a direction, but when there is no direction at all options trading can often lead to losses.


Read on Bloomberg analysis for the USD to continue its growth:

http://www.bloomberg.com/news/articles/2015-10-01/heads-dollar-wins-tails-it-rises-it-s-all-good-for-greenback

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
96.093     -0.008 -0.01%     
Support 94.569     Resistance 96.849
Forward 1 year - 95.534s.

EUR/USD
1.119095     +0.002695 +0.24%
Support   1.10853          Resistance 1.14673
Forward 1 year - 1.14840s.  

Crude Oil  WTI
45.34     +0.60 +1.32%
Support 42.53  Resistance  48.11

Forward 1 year - 50.46s.

Gold

1113.940     -1.185 -0.11%

Support  1,131.1    Resistance 1,150.1
Forward 1 year  -  1,138.1s.

Pieter Bergli - DeLoren Trust Holdings

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