After the renewed strength from the US Dollar last week, trends seem to be (finally) going. All the major currency pairs clearly reacting and proving the dollar strength as it can be seen against the EUR – with all the EUR pairs also proving a weaker and weaker European currency – the British Sterling, the Australian, the New Zealand and the Canadian Dollar, and even the Iene. The charts are now showing the cyclicity we were waiting for and presenting good opportunities to make some profits.
On the Indices side, the recovery is in order once again as both the European and the US market still breaking last months highs in what seems to be a clear bullish territory. In Asia, the Nikkei is also benefitting from this short risk on period.
On the Commodities side, Oil is still stuck at the range between 46 and 43 while Gold and Silver continued on the bearish side and clearly heading towards the lows of the last couple of years.
Best Trades this week
1. AUDUSD (Daily Chart) – Continuation Short – 04.11.2015 – A pullback to the moving averages along with the engulfing bar bounce made us place this trade. Currently at a +1% profit, price is now hiting a major support level at 0.70 so we are locking in on some of the profits.
2. EURUSD (Daily Chart) – Continuation Short – 02.11.2015 – A small high test on the 2nd gave us the confirmation signal we were waiting for after the confirmed downwards trend. Now at around a +4% profit we are managing this one in a protective way but letting it run until the next support level at 1.05.
3. USDJPY (Daily Chart) – Breakout Long – 04.11.2015 – Finally the brek of the range. We had a pending order above the previous highs that triggered on the 4th with a decisive bullish bar. Currently at +1% in profit were paying attention to price as it approaches the 125 level of resistance.
EFFECT OF THE NEWS LOOKING FORWARD
This week the news are definitely allowing us to focus more on the charts. The significant ones will surely come from any unexpected news out of the ECOFIN meeting on Tuesday as the market will most likely slow down by Wednesday with the Bank Holiday in the US although volatility is expected around the speech from ECB’s speech.
On Thursday precaution is recommended as (yet another) speech from the ECB president and a few announcements from the US Federal Reserve – FOMC – are usual taken by some more aggressive investors.
We are looking forward to make the most out of the current trends and expecting a good last quarter of the year after the slow markets in a recent past. As always, wait for the right signals and protect your capital above all.