Global FX Economy 29th Oct 2015. USD firm, bullion slides. Markets, news and analysis. E

Forex Market Commentary  

Bullion slips on USD strengthening.

Gold slides 10 Dollars plus on gathering strength round the USD. At 1140 a push to the 1200 mark is fading fast and key support at 1093 is being eyed as technically the shiny metal consolidates a downward bias after the recent surge of interest.

EUR/ USD is consolidating at 1.09 comfortably after ECB chief Draghi came out all guns blazing to talk down mounting pressure at 1.14. Positive German unemployment data today at 6.4% unemployment which helped that lifting sentiment. Resistance at 1.1387 and key support at 1.05. as large speculators mull over winding up position to flat out or rolling over positions the eventual likely outcome for the remainder this year will be a holding pattern on the spots in a tight 1.08 - 1.12 range. Given the Fed is looking hawkish over a December rate hike the bonds markets have already moved to factor in that price and US equities looks to consolidate at the Dow 17,000 level having accounted for a probable 25 basis increment in December. Such a move will be largely welcome given that the US economy is already at 5.1% unemployment and 1.9% inflation with the two key targets for rate review actually being met. the huff and puff of Wall Street is now over and CEO's routine fluster all but accounted for as a show that cannot prevent the inevitable. US rates must rise now 25 basis points. Consequently USDX reflects its pause at the 97 mark within touching distance of the magic 100 figure and crude oil cannot get any worse since the worst of inventory pile up has already been accounted for with WTi fair price at 45 mark and bid pressure mounting on the forward curve to reflect an increment of 5 dollars over the next 3-4 months..

Read on Bloomberg how the US Fed needs to listen more to what the Bonds markets are telling them:

http://www.bloomberg.com/news/articles/2015-10-29/fed-officials-still-need-to-win-over-key-voter-the-bond-market

Read on Reuters how the oil giants have come to see their profits dwindle this year: 

http://www.reuters.com/article/2015/10/29/us-oil-results-idUSKCN0SN1XK20151029 

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 
97.240     +0.025 +0.03% 
Support 94.213     Resistance 98.993
Forward 1 year - 95.259s.

EUR/ USD
1.09821     +0.00033 +0.03%
Support   1.08173         Resistance 1.1393
Forward 1 year - 1.14600s.  

Crude Oil  WTI

45.86     -0.20 -0.44%

Support 42.63  Resistance 48.31
Forward 1 year - 52.07s.

Gold

1147.41     +0.36 +0.03%

Support  1,160.2    Resistance 1,191.2
Forward 1 year  - 1,186.5s.

Pieter Bergli - DeLoren Trust Holdings

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