April (WK5) Market Update

At the currency market this week, we are now witnessing an (unexpected?) weakness from the USDollar. All majors and minors proving that weakness with EUR going up and hitting levels from February above 1.10. Cable also proving the reversal from last week at almost 1.55. In the meantime, AUD and NZD also growing against the American currency while the Canadian dollar is still following the Oil price and gaining extra strength. The only pair that seems to still be in an indecision period is the USD:JPY due to some weakness also around the Japanese currency seen around other JPY crosses.

Regarding the stock indices Europe is facing a bigger pullback after weeks of nonstop uptrend while the American side is still not proving to be able to break the last 2 month range to the upside. On the Asian side, Nikkei is still rising and Hang Seng broke the all time high now holding around the 28600 level.

 

Oil price showed yet another rise in price although not convincingly, as for Gold it stayed still within the low volume range of the previous weeks.

  

Best Trades this week

  1. NZDUSD (Daily Chart) – Continuation long – 24.04.2015 – The bounce on the moving averages and the clear price action showing higher highs and higher lows made usplace the trade on the low test bar on the 24th. Now at around +1,5% profit.

2015wk5_nzd

 

EFFECT OF THE NEWS LOOKING FORWARD

Next week there is the UK Bank Holiday so it should be a quiet beginning although there will be the G8 meetings on Monday and Tuesday that, as usual, might shed some light regarding some of the international policies and some ideas on the current situation of the markets in general. We will be paying attention to any surprising comments in order to protect our positions.

At the end of the week there will be the Parliament Elections in the UK and the Non Farm employment change on Friday so special care with any running position and new action.

After the price action this week on the currency market, we will have to have the patience to wait for the right signals to trade with the (new) trends or, if price shows it, any clue on the direction of the price. Naturally, the confluence of the patterns will dictate our actions…

As for the indices, we are waiting for the first signal of a return to the overall uptrends in Europe and Asia as for the American side we are still hanging to see the decisive break to the upside from the indecisive range of the last weeks.