March (Wk2) Market Update

As expected, this was the week of all trends… Regardless of any news or events, the USDollar regained the strength from the past months and pushed the currency market ‘forwards’. Every single currency lost the battle including the Yen which was the last remaining pair since the beginning of the year.

There were some changes on the indices side. While Dax and Cac still pushing to all time highs, FTSE and the American Indices (Nasdaq, Dow, and S&P) registered a (usual) significant pullback. On the Asian side, Nikkei again breaking all time records.

Gold and Silver dropping continuously for the past weeks broke through previous support levels and are showing no signal of slowing down while Oil continues the sideways movements since the end of January, currently at the 47 level.

 Best Trades this week

  1. EURCAD (Daily Chart) – One bar pullback short – 10.03.2015 – After being on a range between the 1.37 and 1.44 levels, price broke out of the support level on 6th. On the 9th, a one bar pull back rejected the upside once again and allowed us to make the most out of this now very convincing downtrend. Currently at around +2% profit we should manage each and every trade according to what the market is telling us to. It is especially important to manage your risk tightly if trading several positions.

 EURCAD_20150313

  1. NZDCAD (Daily Chart) – Reversal Short – 05.03.2015 – After two bounces off the resistance level at 94.70, price reversed after the high test bar on the 4th. Stochastic divergence confirmed it and this is now at a +2% profit. It is recommended to take a look at bigger time frames to see if this becomes a keeper…

  NZDCAD_20150313

  1. EURGBP (Daily Chart) – One bar pullback short – 06.03.2015 – a clear downtrend brought by a weak EUR and a ‘holding’ GBP showed us a minor pullback on the 5th before resuming the phase 1 on the same day. That engulfing bar was the basis for another scaling in trade currently at +2% profit.

  EURGBP_20150313

EFFECT OF THE NEWS LOOKING FORWARD

Next week, still the G7 meetings on Tuesday as well as the Monetary Policy from the Bank of Japan which mighthelp or contradict the apparent decisive move upwards registered on the charts for the past 2 weeks on the USD:JPY.

Regarding the other currency pairs, we will be expecting the normal ‘taking profits’ pullbacks already seen at the end of this week, and all the attention will certainly be concentrated on the Majors and Minors.

On Thursday, the economic projections from the Federal Reserve will certainly be the highlight of the week as we are already starting to hear the fundamentalists discussing the (un)sustainability of the American currency at these levels.

Regarding the Indices, we are now waiting for the price action to dictate our actions as we are especially attentive to the American market after the significant pullbacks this week.