Posts Tagged ‘FOREX’
European Stock and Currency Summary
The Federal Reserve Bank chairman Ted Bernanke commented Tuesday that the U.S. recovery will remain intact. This continues to lend a prop to risk appetite as did talk that Thursday’s China export data will show a 50% increase. European equity exchanges traded positive throughout the session.
The risk currencies advanced, CDS rates came down and peripheral Euro Dollar zone bond rates came down somewhat. EUR/USD nudged 1.20 from a 1.1924 low, GBP/USD recovered from its ratings-worry sell off Tuesday adding one cent to 1.4534, despite a surprise widening in the visible trade balance to GBP7.2B. USD/JPY pivoted around 91.50. The main European indices are up around 0.4%, gold is down $3 at 1234oz after printing a lifetime high Tuesday and oil is up $1 at $73bbl.
Where the turnarounds are happening are all around strong support/resistance lines all historic in importance. The Dollar Index Futures hit a major resistance line yesterday at an in day high above 89 points and retreated. This seems to be the end of the monthly upwards trend that started when prices broke the long-term symmetric triangle upwards as I pointed in my previous article. The Futures Index will not, it seems to me, make its intended goal of 92.3 points, but this is true for most pattern breaks. It is hard to say for now what will be with the US Dollar rates around the world, but the upswing seems to be ended when looking at Dollar/World Currency pairs as they end streaks and hit s/r lines in addition to seeing the Dollar Index Futures as is shown on the Chart Below.
This is the way the Chart looks:
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G-D Bless America
By this I mean, of course, none other than the US Dollar. Oh Mighty One!! Bestow your blessings on our fluctuating currency, for ’tis to be majestically and majically going up again against all fundamental odds. It’s been very hard to follow, much less to invest by. As these lines are written the US Dollar Index Futures have been going upwards nicely, breaking their previous daily downwards movement which could hardly be called a trend. The strong upward trend is confirmed today with the gap up that was caused by good world-wide news over the weekend. This trend is not expected to end soon. But, as I always have written when addressing the Dollar, any upwards trend is only a correction of the long-term downwards pattern that has plagues the Dollar since the start of this current Depression. Check out the chart to enlighten you to the short-term facts and the strong possibility that this short-term trend pattern will continue for some time to come.
This is the way the Chart looks:
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America’s Retail Markets: Part V
I have decided to add another installment in this series before the final overview chapter is written. And indeed, it can not be written until we examine the United States’ leading retail foods giant, Wal-Mart.
Wal-Mart is now in the midst of a daily downwards fan pattern as shown on the Daily Chart below. This pattern can be somewhat unstable at the end, and it indeed seems to be nearing its’ end. It can break upwards and is likely to given the fresh upwards trends taken by the retail companies mentioned in my 2 previous articles. These are fresh trends and recently the 1st two articles’ stocks has started an upwards trend as well. Wal-Mart’s price level has been at or below the lower bounds of the Bollinger Bands, showing a tendency of over-selling, since the fan has started. The RSI is also right by the 30 level which is, basically, sold-out. The buyers may come, and probably soon, technically speaking. But economically this will rely on the major companies’ sales, revenue and profit margins as quoted in their next fiscal reports.
There seems to be good times ahead for the Retail Markets, as shown by the Bollinger Bands showing their crossing of the price levels, and the indicators that show oversold prices on the way in the Weekly Chart below. As I said, the RSI is sold-out and ready to accept buyers, or rather “bargain hunters”. And the Average True Range, or ATR is low indicating little intra-day changes in prices and signaling a breakout soon. Do not act in any way on this “tip” because there is no breakout yet. Watch your charts daily and, when you see a true pattern break, then it is more wise to act on.
This is the way the Weekly Chart looks:
