At the currency market this week, our previous predictions were met – all the EUR crosses showing EUR weakness again and price showing lower lows and now pulling slightly back up proving the usual cyclicity.
Cable, on the other hand, is retesting the 1.48 level (check weekly charts) from 2013. As AUD and NZD are also in a very indecisive range against the USDollar we can only conclude that the major moves with the overall trends are now due to EUR weakness and not to an overall Dollar strength.
On the Indices side, CAC and FTSE still breaking all time highs although the end of the week showed an expected retracement.
DOW, NASDAQ and S&P still showing buy signals but struggling to reach the previous all time highs. On the Asian side, the Nikkei still showing typical trend behaviour with consistent higher highs and lows while Hang Seng is now consolidating around the maximum hit level at 27700.
As mentioned last week, both Gold and Silver are stuck in a very tight range while Oil was the surprise of the week as it broke through the 54 level to the upside – as usual, USDCAD proved the inverse correlation and also broke the range to the downside.
Best Trades this week
- GBPUSD (Daily Chart) – Reversal Long – 13.04.2015 – After the close of a low test bar on the 14th, the support level at 1.47 proved to be enough although the stochastic oscillator divergence was the final stroke on the decision to take this reversal trade. On the 3rd day the +2% profit was hit and we are looking forward to see if this becomes a complete reversal of the short trend or just another pullback on a now significant consolidation area.
- AUDJPY (Daily Chart) – Range trade Long – 14.04.2015 – The clear rejection of the 0.90 level proved once again to be a good opportunity. Price followed and after the tails on the bottom bouncing of the support price is currently at +1,5% and promising to reach the other side of the range. Protection will be key as usual…
EFFECT OF THE NEWS LOOKING FORWARD
We are looking forward to next week as the rice is showing some potential opportunities on both the Currency Market and the Indices side. As the trends unravel and price pullback, we are eager to watch the ‘right’ price action support our analysis and allow some more smart entries. Be patient and manage your risk is the advice.
Regarding the news, we are expecting a quiet one although some of the meetings on the Eurozone – G7 on Wednesday and Eurogroup on Friday – might shed some light on the conditions of the Greek debt that can add some unexpected volatility.
On Thursday, the unemployment claims from the USA are also known to increase the number of entries and closing positions so act accordingly and avoid ‘swimming during storms’.