July (WK5) Market Update

After a few weeks of major indecision on the European side, and clear trends from the New Zealand Dollar crosses, the EUR and GBP stayed within the same limits as the NZD crosses came to a stall after USD:NZD cleared bumped into a major Weekly/Monthly level at around 0.66.

On the Indices, the CAC and the DAX seem to be showing some signals of recovery after the big drop for the last month as the American side was kept within the range on the Dow and S&P side, while the NASDAQ pulled back and is now retesting the previous resistance level.

On the commodities side, Gold broke the 1180 level to the downside and is now showing clear signals of a downtrend. As for Oil, after dropping below the range from June, it kept heading down as a downtrend always does…

 20150731CAD

Best Trades this week

  1. USDCAD (Daily Chart) – Continuation Long – 29.07.2015 – Pullback to the moving averages and waiting +1% profit. Hitting a major resistance level right now…

 

 

 

EFFECT OF THE NEWS LOOKING FORWARD

On the currency market, we will be mostly waiting for the breaks as most of the majors and minors are now bouncing around some major levels of resistance/support – USD:CAD, NZD:USD. As for the JPY, EUR and GBP, we need to see some more convincing price action towards some renewed trends before starting to look for the price action to show the right signal for a potential entry on the market.

As for the Indices, we are now looking for the higher price on the European side and for the breakout to the upside from the US. Regarding the commodities, both Gold, Silver and Oil are now looking as confirmed down trends, so we will be looking for the perfect setups and make the most pf it… while managing our overall risk and therefore protecting our capital.

Regarding the news, Wednesday we will certainly be paying attention to the GBP announcements with the Inflation Report and the Official Bank Rate from the Bank of England.

On Friday it will be the usual Non-Farm Employment change numbers announcement which is a major influence on the currency market as it affects the US Dollar. Recommended caution before and during this one.