Brad Alexander
FX Large Limited
In our last video, we looked at a potential short trade on WTI Crude Oil and what to look for in terms of confirmation.
Price action on WTI Crude Oil rose again based on Mideast tensions but we suddenly got technical confirmations on a reversal.
The stochastic oscillator turned down from being very overbought and the parabolic SAR went bearish.
The signal line moved out of the histogram on MACD and turned down, all after this bearish candlestick.
Also, yesterday the Crude Oil inventory report showed a much higher level of supply than expected driving prices down.
Also, we see tomorrow morning, Washington time, we have the same report on Natural Gas.
You can trade this and we have seen price action rising based on more aggression between Ukraine and Russia.
We looked at price action on silver heading for the upper trend line but it seems to have settled at resistance at around $28.
Our technicals aren’t really helping us so we will have to wait for confirmation.
On gold, we also have price action at resistance but we see an ascending triangle on the daily chart.
Both gold and silver will be affected by USD news coming out tomorrow morning.
We also see that mixed news on the Australian employment front caused a whipsaw on some pairs giving us a long opportunity on AUDUSD.
While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
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Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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