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As the oil continues its down side and still under heavy pressure there is a increased risk in the market for the stability of oil price, to top the further fall in oil price a surplus supply form Iran.
No the other hand a threat of global recession is mounting as most of the country’s are showing signs of slow down.
China is adding fuel to the fire with the market in red zone investor are forced to shift the investment to other safe heavens.
As the US market is till pushing higher and US Dollar continues to be dominant in the currency market.
every want to see how the coming US date unfolds .
Date to release today US Core Retail Sales m/m,Producer Price Index (PPI) and Advance Retail Sales.
Technical levels for EUR/USD and GBP/USD are as follows.
|S3: 1.0742||S2: 1.0769||S1: 1.0796||R1: 1.0905||R2: 1.0932||R3: 1.0959|
|S3: 1.4271||S2: 1.4307||S1: 1.4342||R1: 1.4430||R2: 1.4466||R3: 1.4502|
A very strong NFP data 292K which was more than what the market expected had the market pulse moving, bashing pound to the low of 1.4506. As Eur/Usd did manage to recover for the day loss and closing the event at 1.0921.
Further weakness in pound the expected till 1.4300 levels but he key focus would be on Wednesday event where the decision for the change in interest rate could effect the trend.
Following are the key technical level to lookout for:
|S3: 1.0739||S2: 1.0766||S1: 1.0792||R1: 1.0931||R2: 1.0958||R3: 1.0985|
|S3: 1.4374||S2: 1.4410||S1: 1.4446||R1: 1.4587||R2: 1.4623||R3: 1.4660|
The Non-Farm Payrolls which show employment changes across 10 private labor market sectors is watched closely by markets eager to gauge the health of the economy. Investors are well aware that the Fed’s policies in the coming months will depend on significant indicators like labor market data and inflation report. Robust non-farm data signals tightening of the labor market which in turn signifies a strong economic outlook.
If the December non-farm payroll data is stronger than what is being expected then the possibility of the Fed raising rates for a second straight time in end January will increase.
Technical levels for majors.
|S3: 1.0798||S2: 1.0825||S1: 1.0852||R1: 1.1023||R2: 1.1051||R3: 1.1078|
|S3: 1.4450||S2: 1.4486||S1: 1.4523||R1: 1.4633||R2: 1.4669||R3: 1.4706|
|S3: 0.9794||S2: 0.9818||S1: 0.9843||R1: 1.0006||R2: 1.0031||R3: 1.0056|
After the hint given by FED for successive rate hike in the year 2016 would have dovish impact on US dollar.
A dovish rate hike is what the market is expecting but for now there are trading opportunities which we have to consider.
Outlook for today is for long position on EUR/USD, GBPUSD, EURJPY.
TECHNICAL LEVELS ARE AS FOLLOWS
|S3: 1.0697||S2: 1.0724||S1: 1.0751||R1: 1.0836||R2: 1.0863||R3: 1.0890|
|S3: 1.4502||S2: 1.4539||S1: 1.4575||R1: 1.4657||R2: 1.4694||R3: 1.4730|
|S3: 126.19||S2: 126.51||S1: 126.82||R1: 128.01||R2: 128.33||R3: 128.65|
The year 2016 is about to change some major direction in the market.
Last year was full of ups and downs.
naming a few key events like CHF -rate change which shocked the market.
china changing there trade policy, ECB changing there deposit rate and US much awaited rate hike.
these where the few key events changing the market. it was observed that there was lot of divergence in the market where the currency pairs where operating in different direction.
CURRENCY PAIRS TO LOOK OUT FOR.
This is one of the few currency pairs which has good potential for upside.
Long term position should be considered for buy and buy on dip would amplify the profits.
targets for the currency pair would be given in further posts.
Pound trading at low near 1.4650 trying to test last year march low of 1.4567.
although the pair is at the support are but it seem to be trading in box for quite a few years now.
as major change in financial policy is what is need to break though this box rage.
pound feeling the pressure as the economic data continues to weaken and much pressurized by US dollar demand.
trading levels for cable would be given in the next post.