Browsing all articles from April, 2013
Apr
30

USD/CAD D1 Technical April 30

USD/CAD is currently trading above its support level 1.0100 level. As the price is at last Bollinger showing oversold of USD/CAD, So pair is expected to move up for retracement.  If USD/CAD manage to break its resistance 1.0120 level and H4 closure above this level then it will allow pair to further move upward.

The scenario will be change, If USD/CAD didn’t manage to hold its support level and H4 candle closure below 1.0100 then pair will fall further towards southward.

High impact News of USD can change the scenario. News like CB Consumer Confidence.

Apr
30

EUR/USD D1 Technical April 30

EUR/USD is trapped in a small range of 1.2990-1.3130 level. Bollinger bands are showing bearish trend. So, pair is likely to face its support level 1.2990. Price action on this level should be carefully watch. If EUR/USD manage to break its physical level and H4 candle close below 1.2990 level then it will allow pair to dropped further towards south and target 1.2950-20 level respectively.

The scenario will be vanished, If EUR/USD manage to break 1.3130 level and H4 candle close above resistance level . This will then provide more potential to pair and EUR/USD will then continue its uppish trend towards 1.3200 level.

High impact News can change the scenario. News like CB Consumer Confidence.

Apr
30

GBP/USD D1 Technical April 30

Today’s outlook for GBP/USD is bearish. Pair is expected to face its support around 1.5415 level. Bollinger bands are also providing sell signals for the cable. If pair manage to break through its support and H4 candle close below 1.5415 level it will indicate more bearish potential for GBP/USD. On the contrary, If pair manage to hold its support level and give a day closure above 1.5500 then it will indicate GBP/USD got bullish strength which will take pair further upward and target 1.5550-87 level respectively.

High impact News can affect the move of GBP/USD. News like CB Consumer Confidence.

 

Apr
30

AUD/USD D1 Technical April 30

AUD/USD is trading in a range of 1.0290-1.0390 level. Bollinger bands are providing sell signals for the pair. Pair is expected to test its support at 1.0290 level. Price action on this level should be carefully watch.

If Aussies manage to break through 1.0390 level and H4 closure above 1.0390 then pair will got bullish strength and start moving towards north. On the other hand, If AUD/USD fails to hold its support level 1.0290 and H4 candle close below support then pair will start falling towards south and target will be 1.0260-0224.

High impact News can affect the movement of AUD/USD. News like CB Consumer Confidence.

Apr
30

Precious metal Down 1 percent; ETF holdings hit lowest Since Sept 2009

Precious metal fell 1 percent on Tuesday, falling into negative territory following some early bargain hunting, however daily outflows from exchange traded funds highlighted investor’s lack of confidence in the gold.

Tim Riddell, head of ANZ Global Markets Research, Asia said that from a technical point of view, while the rebound has been relatively solid it appears to be a more sustained correction of the drop that we saw from late March rather than a turn in trend.

Although yellow metal’s appeal as a hedge against inflation may be burnished by hopes the US Federal Reserve will continue its bond buying programme, flowing stock markets could tempt investors to ditch gold and shift to equities.

Actually what we need to see is a series of closes above $1,505 to take the pressure off, he added that a fall below $1,435 could trigger a favored technical pullback to $1,300 and potentially even as deep as $1,245.

US gold for June delivery gave up early increases and stood at $1,461.10, down $6.30.

US gold futures and Cash dropped to almost $1,321 on April 16, their lowest in more than two years, after a fall below $1,500 led to a sell-off which stunned investors, and encouraged them to slash holdings of exchange-traded funds.

Precious metal fell $14.18 per ounce to $1,461.61 by 0617 GMT.  It had increased slightly on Monday on expectations the Fed would keep the pace of its bond buying unchanged at $85 billion a month following less than expected US growth.

The SPDR Gold Trust, the world’s biggest gold backed exchange-traded fund, said its holdings dropped 0.22 percent to 1,080.64 tonnes on Monday from 1,083.05 tonnes on Friday to their lowest since September 2009.

A weak March employment report in the US and other softer signals from the economy seemed to kill off expectations the Fed could taper the pace of bond buying in next months.

Asian shares edged higher on Tuesday, a day after the S&P 500 index ended at an all-time high and as investor risk appetite was bolstered by expectations the European Central Bank and US Federal Reserve the will continue with growth supportive monetary stimulus measures.

The Fed is currently buying longer dated US Treasuries and mortgage backed bonds every month and is expected to vote to keep doing so at the conclusion of a two day policy setting meeting on Wednesday.

Fears that central banks money printing to buy assets will stoke inflation have been a key driver in enhancing gold, which rallied to an 11-month high in October last year subsequently the Fed announced its third round of aggressive economic stimulus.

Apr
29

Precious Gold Rises 1 percent, Holds near One Week High

Yellow metal rose more than 1 percent on Monday and held near its highest level in more than a week as a bounce back in prices from multi-year lows failed to control investor appetite for the gold’s, leading to a shortage in physical supply.

Current bleak US growth statistics that raised expectations the Federal Reserve will keep its current pace of bond buying at $85 billion a month also supported precious metal that is typically seen as a hedge against inflation.

However investors are still roiled by the very recent event of the tumble. The question is how supportable is this physical buying as at the same time, we are still seeing funds flowing out of yellow metal. Retail investors won’t be buying bullion in hundreds of millions of dollars like the funds.

Both cash gold and futures dropped to around $1,321 on April 16, their weakest in over two years, subsequently drop below $1,500 sparked a sell-off that encouraged investors to slash their holdings on exchange traded funds. They touched an 11 day high above $1,484 on Friday.

I don’t consider gold is out of the woods yet, however there’s room for upward correction. One of the reasons why precious metal has plunged so much was the strong signs of US economic recovery.

US gold futures which often give trading cues to cash metal, hit a high of $1,472.20 per ounce. By 0226 GMT, prices stood at $1,469.60 climbed $16.00. Spot gold gain $7.51 per ounce to $1,470.01.

Premiums for gold bars have jumped to multi-year highs in Asia as of strong demand from the physical market, which has led to a shortage in gold coins, bars, nuggets and other products.

In other markets, shares in Asia crept ahead on Monday however the US dollar lost ground to the yen as markets braced for a busy week for economic statistics and central bank policy meetings in the United States and euro zone.

Holdings on the biggest gold-backed exchange-traded-fund ETF, New York’s SPDR Gold Trust continue to drop, which was a sign investors have yet to reinstate their confidence in gold. The holdings are currently at their lowest since September 2009.

The current string of underwhelming statistics will strengthen the hand of the doves at the Fed and temper any talk of tapering back the bond buying programme. The policy setting Federal Open Market Committee will announce its decision at 1815 GMT on Wednesday.

Report by the Commodity Futures Trading Commission showed on Friday that yellow metal rallied to an 11-month high in October previous year after the Fed announced its third round of aggressive economic stimulus, raising fears the central bank’s money printing to buy assets would stoke inflation, money managers and Hedge funds trimmed their net longs in gold futures and options in the week to April 23 as investors reduced optimistic bets.

 

Apr
29

USD/CAD D1 Technical April 29

USD/CAD will test its support at 1.0140 level. Price action on this level should be handle carefully. If pair manage to hold this level and H4 candle close above 1.0140 level then pair is likely to move towards northward. The scenario will be change, if USD/CAD break 1.0140 level and H4 candle close below support level then it will allow pair to dropped further towards 1.0075 level.

High impact News of USD can affect the pair. News like Pending Home Sales m/m.

Apr
29

GBP/USD D1 Technical April 29

The long term outlook for cable remain bullish. As the rate is on top of bollinger showing oversold for GBP/USD so there will so some correction. If GBP/USD test its resistance at 1.5550 level and fails to give a H4 closure above 1.5550 level then pair is likely to dropped towards south and target 1.5420 level.

On the other hand, If cable manage to break its resistance and H4 candle closure above 1.5550 level then GBP/USD will continue to move upward.

High impact News can affect the trend of pair. News like Pending Home Sales m/m.

Apr
29

EUR/USD D1 Technical April 29

 

EUR/USD is expected to face its resistance at 1.3080 level. If pair manage to break this level and H4 candle closure above 1.3080 level then it will allow pair to continue its bullish trend and target 1.3140-70 level respectively.

The scenario will be vanished. If EUR/USD didn’t manage to overcome its resistance and H4 closure below 1.3080 level then it will indicate bearish potential and ER/USD will rapidly fall towards southward.

High impact News can affect the move of EUR/USD. News like Italian 10-y Bond Auction, Pending Home Sales m/m.

 

Apr
29

AUD/USD D1 Technical April 29

AUD/USD didn’t manage to give a day closure above 1.0290 level. So, pair is expected to move down and test its support around 1.0224 level. Bollinger bands are not showing clear signals for the pair yet. Price action on 1.0334 level should be carefully watch.

If Aussies manage to break though 1.0334 level and H4 closure above 1.0334 then it will indicate bullish strength for the pair and AUD/USD will then continue its uppish trend and likely to face its next resistance at 1.0390 level. On the contrary, If pair fails to break its resistance and H4 candle closure below 1.0334 level then AUD/USD will fall towards south and target  its support at 1.0224 level.

High impact News can affect the movement of AUD/USD. News like Pending Home Sales m/m.