Market trend analysis for 5th of July 2011

Hi, everyone. Let us look at what happened in financial markets today. We will also try to see how you could have predicted those daily market trends in advance. Before starting I want to say that I have recently opened a few more new pages on my blog and you can see them on the right side of the upper corner. They are about eur/chf and eur/cad pairs. I will open six more pages soon. I am planning to update a page for each separate pair at least once a week. So be sure to get insights on some specific security in fx market. I will continue analyze a few pairs each day on the main page, occasionally adding my thoughts about precious metals and oil. Hope to start a section on stocks sometime in the nearest future. 

Bullish day for gbp/usd

 

British pound strengthened a little today. In my opinion it was a technical move for I do not see any significant fundamental news that could have caused the bullishness in pound pairs. Gbp/usd stayed trapped within the range I talked about a few posts before. It showed a lot of strength during European session and as you have expected buying started at previous support of 1.5990 level. Were there any signs regarding where to enter this bullish move? Yes, if you look at 5 minute chart you will see 123 pattern around the mentioned level that was formed in the period of 7:15-8:10 GMT. You could of course buy the break of point number 2. Exit is of course at previous resistance at 1.6115-1.6130 area. 

We will have some very important data from Great Britain on Thursday (Bank of England Rate Decision) together with the same piece of data from European Central Bank. I think this information will force gbp/usd out of its current lullaby into some stronger moves. 

Breakout in gbp/jpy is not very strong

 

Gbp/jpy also saw a breakout upwards, but the price is retracing at the moment. Nevertheless, the bullish pattern of higher lows in the pair (recently) would have prepared you for an upward trend move today. A place to buy was a clearance of 130.19 level. Exit was a bit more problematic since the pair failed to reach an even number of 131.00. Like always one possibility was to trade with two positions by closing the first one after the pair ran 20-30 pips and move the stop for the second one by placing it under the �valleys� of 5 minute chart. This would have got you out at 130.60 point. 

Hope market trend analysis was useful for you. 

See also:

Eur/Chf

Eur/Cad

Disclaimer

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.

Trend for 27th of June 2011

Hi everyone. Let us look if there were any market trends today that we could have predicted and traded. Let us also try to predict possible moves that could be in financial markets in the nearest future. Let us talk about metals first.

Precious metals continue their medium downtrend

 

As I expected both silver and gold continued going down today. Both formed some sort of double bottoms on 1 hour charts, but I think they are temporary and the commodities will continue their downward trend. The target which I expect silver to reach is at 30 dollar per ounce, possibly 25 and gold around 1380 bucks per ounce. Both estimates are based on weekly Bollinger bands. As you may understand the prices may go much lower (I don�t think so). So, at the moment the strategy could be: sell the rallies at most recent resistance (for day and swing traders). 

British pound maybe bottoming

 

When I look at various pound pairs (gbp/usd, eur/gbp, even gbp/jpy) I see that it is bottoming and can be ready to go up soon. This could even start tomorrow for we have very important news coming from Great Britain (Gross Domestic Product) at 8:30. I will be looking at proper levels of resistance to by a breakout upwards if it really occurs. It is too early to discuss those levels now for the price may move radically over the next 12 hours and the areas we mark now might be absolutely irrelevant at the time news comes out. 

Yen is not able to break through

 

Yen is trying to beat its way and is not very successful now. I think sell high (other pairs against Yen) is the best strategy for now. Much will depend on the upcoming price action in oil. If US and the International Energy Agency will throw some 60 million barrels of oil into the market this can push the price of oil down pretty much. However, at the time the thing was announced correlation between Yen and oil disappeared, oil went one direction and Yen in the opposite. Let�s continue watching whether this trend will continue. 

Canadian dollar can strengthen on Wednesday

 

Canadian dollar can also strengthen. If you look at usd/cad on 15 minute chart you will see a bearish reversal pattern (head and shoulders). You will notice that cad/jpy formed a double bottom and 123 pattern on 1 hour chart and has been going up today. Wednesday is important day for loonie for we have data from Canada coming at 11:00 GMT (Consumer Price Index). This can add some bullishness to Canadian dollar even before Wednesday comes. 

So much about market trends today. Let us wait for tomorrow and see how market will react to the news from Great Britain. Good luck in your trades.

See also:

Forex news trading

Disclaimer

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.