Global FX Economy 5th Nov 2015. EUR/ USD short covering ceases. Markets, news and analysis.

Forex Market Commentary  

EUR/USD short covering has almost come to a halt

US NFP data comes out on friday 6th November. EUR/ USD is starting to show signs of increasing likelihood of a fall down to he 1.05 region. Large traders are now becoming reluctant to cover their existing shorts and square off for the year.Moreover USDX closed touched up 116 at 98 and a three month high before closing in the 97 area with a soft probe on likely resistance; and it wasn't there. Look for the 52 week low at 1.0458 as the next support for EUR/ USD. Also we have to take into account the European Commission forecast which was released today and is released three times a year in February, May and November each year. The key report expects annual inflation to drop to 1.0% for 2016 compared to a previous 1.5%. this is in start contrast to the US economy which is in the process of issuing more debt rather than buying debt to control inflation.

Ahead of the NFP today traders are unwilling to cover shorts with the wide expectation of a large drop in the EUR/ USD on the NFP data which may be strong. Given recent hawkish reports from the US Fed the interest rate divergence between the ECB and US Fed looks set to become more pronounced over the weeks ahead before the close of this year 2015.

Read on Reuters how analysts will disect the NFP tommorrow.

http://www.reuters.com/article/2015/11/06/us-usa-fed-bullard-idUSKCN0SV03K20151106 


Mean time bullion slips again to 1103, crude oil adjusts to 45 as commodities get set for losses in the days ahead should the USD, being the major commodity currency, gets set to rise, which in turn curtails purchases for precious resources.

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 
97.939     -0.047 -0.06%
Support 94.213     Resistance 98.993
Forward 1 year - 98.259s.

EUR/ USD
1.088115     +0.001420 +0.13%
Support   1.07173         Resistance 1.1393
Forward 1 year - 1.1160s.  

Crude Oil  WTI

45.40     +0.20 +0.43%

Support 43.63  Resistance 48.31
Forward 1 year - 48.07s.

Gold

1103.935     -6.215 -0.56%

Support  1,110.2    Resistance 1,131.2
Forward 1 year  - 1,116.5s.

Pieter Bergli - DeLoren Trust Holdings

A non-profit commitment to provide education on the properties of currency markets

Forex market commentaries and media reports for free 

  
Disclaimer - U.S. Government Required Disclaimer - Commodity Futures Trading Commission

Futures and Options trading involves risks of losses. No representation is being made that any reader and account will or is likely to achieve profits or losses similar to those that are being discussed on this blog http://forexeducationperspective.blogspot.com/. The past performance of any trading system or methodology discussed is not necessarily indicative of future results.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

All trades, patterns, charts, systems, etc., discussed in this blog http://forexeducationperspective.blogspot.com/ are for educative and illustrative purposes only and not to be construed as specific advisory recommendations for actual trades. Disclaimer -  http://forexeducationperspective.blogspot.com/ bears no responsibility for the trading actions of its readers.



* European Union laws require European Union visitors to this blog to know that cookies are used by Blogger and Google, including use of Google Analytics and AdSense cookies and in reading material from this blog do consent to the use of such cookies