Chart of the Day:
On NFP Friday, it’s smart to do an overview of both the US Dollar as well as the S&P 500. But having done the S&P a couple of times this week already, lets mix it up a little and take a look at trading Gold.
Chart of the Day:
Lastly for your Monday morning, Republican presidential front-runner Donald Trump has spoken to the Washington Post and predicted that the United States is on course for a “very massive recession”.
“I think we’re sitting on an economic bubble. A financial bubble.”
Although the comments were as vague as you’d expect from a politician, unemployment and ‘overvalued’ stocks were cited by the big man.
“It’s a terrible time right now to invest in the stock market.”
Chart of the Day:
These Aussie feature blogs seem to always have AUD/JPY as my go to ‘alternate’ currency pair and the trend continues today. The trend is your friend, as they do say!
Chart of the Day:
Yesterday we featured AUD/JPY and once again it was the higher time frame resistance level that won out over short term support. I encourage you to go back over your charts and look at the amount of times you have the choice between trading a short term level against what the larger time frame charts are telling you, and to see what would have happened. Higher time frames are king!
In today’s chart of the day, lets just look at how we can go about trading this Yen strength that we’ve spoken about throughout the blog.
For more information about [USD data](Chart of the Day: The FOMC Minutes also coincided with the 110 level in USD/JPY failing. USD/JPY 15 Minute:),check out our website.
In the decision fallout, price has spiked up to test the GFC low line we have marked on our chart and was rejected quite hard. That level and the gap level that we highlighted yesterday might get some attention near term, but they have to be seen as selling opportunities, surely.
More GBP charts in the Vantage FX Daily Market Update.
Sellers have paused at this support level. Not sure if you should be too keen to catch this falling knife here though. There feels like a lot of momentum behind last week’s Kiwi selling.
A market where everyone is expecting the RBA to cut in August. Waiting for the minutes to spoon feed them that a cut is guaranteed. That was always going to disappoint in some fashion…
So the minutes are released and the spoon feeding dovish rhetoric wasn’t enough to satisfy and he first level of support that price pulled back to (the channel bottom) was bought.
Again, looking at the technicals on the 4 hour SP500 chart from our Vantage FX MT4 platform, I still can’t make a case for a consistent pullback here either.
Intra-day, price is still in the midst of a strong bullish trend, with momentum still obvious following the break-out to record highs the other week. Price now continues to drift sideways in a bullish flag: A reliable continuation pattern as highlighted in the Education Centre of the website.
This is not yet the safest time to get down onto the train tracks and jump in front of momentum.
Bulls, be aware that price has rejected off weekly trend line resistance, but as always, I’m viewing this higher time frame line as highly subjective. A few charts I’ve seen around the place have all used different points to draw their trend line so view it as a zone rather than a hard level.
The AUD/USD hourly shows what seems to be a bit of an equilibrium level. Zoom out and you can see that it is basically the midpoint of a range and a visual representation of a market full of traders not willing to position themselves heavily one way or the other.