Brad Alexander
FX Large Limited
If you caught our last video we spotted a gap trading opportunity on the DAX.
The signs were all there with the stochastic oscillator turning up and eventually the signal line passed out of the histogram on MACD.
Today, price action filled the gap but we need some confirmation that the rally will continue.
The US indices showed us similar moves as we were looking at buying-the-dip on the S&P500.
However, watch the technicals and the fundamentals as many analysts are not sure that the big money has finished unwinding the JPY carry trade.
We see a short opportunity on GBPUSD with price action reaching the upper trend line in this week ’s-old bear run.
We will wait for confirmation and a downturn from the severely overbought stochastic oscillator.
We looked at the current change in JPY and the recent weakness.
We now see rising wedges all over the place which is a bearish sign so watch the fundamentals as well.
CAD pairs are mixed right now which may make for great trading opportunities as we have Employment Change from Ottawa today.
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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