April (WK1) Market Update

Another indecisive week on the currency market… The American Dollar still hasn’t shown the strength from the previous months and as a consequence, there wasn’t much decision on the major currency pairs. All the Asian currencies against the USDollar stayed within the same range from previous weeks while EUR and GBP are still within the range of the major price action on the 18th March due to the dovish tone about the interest rates from the Federal Reserve.

On the Indices side, CAC and DAX now finally seem to have stopped the upwards trend that started in beginning of the year while FTSE saw most of the gains from last week completely given back as price came fully down to the previous technical low.

From the USA, after the setback last week, this week price seemed to show some indication of a return to the upside which proved unsuccessful as it remained within the same tight range. On the Asian side, we witnessed another pullback on the Nikkei whilst the Hang Seng finally showed some signals of getting back to the overall uptrend.

Gold still stuck around 1200, fighting the short trend, while Oil (still) within the range that started in January after the refusal of the 43 price – currently at 49.

 

Best Trades this week

  1. AUDUSD (Daily Chart) – Reversal back to overall trend – 24.03.2015 – After the pullback to the 50 Moving Avergae and to the previous resistance level at around 0.79, a doji bar on the 24th was what made us place thar trade. Currently at around +2,5% profit price is now apparently bouncing of the recent level at 0.76… Act accordingly.

20150403_AUDUSD

  1. NZDUSD (Daily Chart) – Range short – 24.03.2015 – As a highly correlated pair to the Aussie, the rnage on Kiwi proved also to be a good trade after the doji bar on the 24th, hitting te quite strong and recent horizontal level, bounce down until the next support level and giving us a welcome +2% profit.

20150403_NZDUSD

EFFECT OF THE NEWS LOOKING FORWARD

The end of the current week should be a very slow one as we have the Easter Bank Holidays along with the Non Farm Employment change from the US. Enjoy the prolonged weekend. Next week, should only kick-start on Tuesday, once again after the holiday, and on Wednesday we’ll be paying close attention to the news from the Bank of Japan as well as form the USA as the FOMC meeting Minutes were the last piece of news that shook the currency market. We’ll be waiting to see the price reaction to the tone of the speech.

Regarding both the Indices and the currency market, we will as usual sit on our hands until price starts to show some decisive movements towards a renewed trending market so we can cautiously and in an intelligent way make the most out of our analysis.