Global FX Economy 24th Oct 2015. Euro pain barrier. Markets, news and analysis

Forex Market Commentary  

It's official; EUR/ USD 1.14 tops or else!

Well at least this week we came to see the ECB come out all guns blazing and making it's point over the pain threshold; the ECB will not accomodate a EUR/ USD above the 1.14 mark so that puts paid to any 50% retracement on the 1.34 - 1.05 move given that it would be highly improbable to witness a collapse in demand for the USD at this stage of their economic cycle. Any topside movement and the ECB will be sure to step up its open market operations of repurchase of securities to force pressure the EUR/ USD down to the more tolerable 1.10 mark. So traders seeking long entries need be wary every time a piece of news spikes the EUR/ USD.


        
Important data:

Equities: 
Asia:
Nikkei 225   18,825.30 + 389.43 (2.11%)
SSE Composite 3,412.43 + 43.69(1.30%)     
Hang Seng 23,151.94 + 306.57 (1.34%)

Europe: 
DAX 10,794.54 + 302.57(2.88%)
CAC 40 4,923.64 + 121.46(2.53%)

USA:
Dow 17,646.70 + 157.54(0.90%)  

Fixed Income Markets:
US Federal Reserve -  +0.25%    
ECB Base rate 0.050 % 
Chinese interest rate PBC     China     4.60 % 
Japanese interest rate (BoJ)    0.10 % 

Important moving averages:

USDX  above the 50 day m.at 95
EUR/ USD below the 50  day m.a at 1.13
Crude Oil WTI below the 50 day m.a. at 46.5
Gold above 50 day m.a. at 1140
US - 30 DAY FED FUND above 50 day m.a. at 99.85 
US - 10 YEAR T-NOTES above 50 day m.a at 129.30
    

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 
97.051    +0.647 +0.83%      
Support 95.848     Resistance 97.998
Forward 1 year - 97.67s.

EUR/ USD
1.10180
Support   1.09107        Resistance 1.11987
Forward 1 year - 1.11290s.  

Crude Oil  WTI

44.75     -0.63 -1.38%

Support 43.30 Resistance 46.40
Forward 1 year - 50.27s.

Gold

1164.280     -3.670 -0.31%

Support  1,146.1    Resistance 1,187.7
Forward 1 year  - 1,167.0s.

Pieter Bergli - DeLoren Trust Holdings

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