Global FX Economy 20th Oct 2015. Markets, news and analysis

Forex Market Commentary  

EUR/ USD looking more volatile.

The EUR/ USD still trying to test the barriers of 1.1395/ 1450/ 1495 even with the help of short covering the ascent is painfully slow. Technically the EUR/ USD is still oversold and we should see many hedge funds and large currency speculators to close out their weaker shorts. but with the US economy at full employment it is going to be tough going for the Euro currency to appreciate when it is full throttle through a quantitive easing program. The ECB has already indicated that 1.14 is the limits of the pain barrier but with the market hanging on the words of the ECB chief Draghi there is no clear indication yet whether the EUR/ USD could blow through the 1.17 if more hawkish statements are issued or down through the 1.11. crude oil falls slightly over concerns over US inventory pile up slackening the purchase pace. Bullion holds near 1170.

Read on Bloomberg today today's 5 hot topics from Credit Suisse to China:

http://www.bloomberg.com/news/articles/2015-10-21/credit-suisse-reboot-china-shares-slump-imf-warns-gulf-what-people-in-markets-are-talking-about



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 
94.781     -0.074 -0.10%     
Support 94.213     Resistance 94.993
Forward 1 year - 95.259s.

EUR/ USD
1.135225     +0.001675 +0.15%
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

1177.10     +6.50 +0.56%

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

Pieter Bergli - DeLoren Trust Holdings

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