USD/MXN seems to be consolidating within the opening range for August as it struggles to extend the advance from the start of the week, but the exchange rate may track the positive slope in the 50-Day SMA (18.3576) should it continue to hold above the moving average.
USD/MXN Rate Outlook
Keep in the mind, the decline from the monthly high (20.2271) pulled the...
The GBP/USD climbed above the 1.28 handle after today's release of a weaker US PPI report caused a mild drop in the dollar. Earlier we had mixed-bag UK employment data helping to lift the pound across the board.
The GBP/USD pair will be facing more tests later this week with CPI inflation and retail sales data to come from both sides of the pond. In recent days,...
The price of oil stages a four-day rally after defending the February low ($71.41) to register a fresh monthly high ($80.16).
Crude Oil Price Outlook
Keep in mind, the rebound from the monthly low ($71.67) kept the Relative Strength Index (RSI) out of oversold territory, with $80.70 (38.2% Fibonacci retracement) on the radar as crude pushes above the opening...
It has been a positive day so far for precious metals with gold and silver both rising thanks to an improving risk appetite following the mini turmoil last Monday.
Gold's ability to surpass the shaded grey zone on the chart, which ranges from $2431 to $2450 and represents the highs from April and May, indicates that a new all-time high above July's peak of $2483...
GBP/USD is testing the top of its 4-week bearish channel.
One tool that traders can use to help handicap when a trend may break is the RSI indicator. In this case, the 14-period RSI on GBP/USD’s 4-hour chart has been stuck in a well-defined range between 30-50 since shortly after the bearish channel formed, signaling consistent, but not excessive, bearish...
Silver's bullish engulfing candle on Thursday may have marked the end of the corrective phase for the metal, potentially paving the way for a new bull trend.
On Thursday, XAGUSD found strong support from the area around $26.50, where it had taken off in May. It is essential that it now finds some follow-through on the upside.
An ideal scenario for the bulls...
Look at the latest weekly candle. Yes, it’s incomplete, but what a turnaround from where we were on Monday. As of the time of writing, it’s a big bullish pin. Unless we see a major reversal to finish the week, that’s a strong signal that we may see further upside ahead.
I say this because when you look at the price action, so many patterns on the weekly...
Turn-around in USDJPY after the sizable sell-off continued through this week's open.
Been a lot of remarks about how much of the carry trade has unwound, with one major bank saying first 50% had been unwound, and then 75%.
Since FX is de-centralized, coming up with an accurate statistic here could be challenging as that level of data does not exist. The best...
Financial markets are significantly more stable today. Major indices have rebounded, with all posting gains, especially the Japanese Nikkei, thanks to reassuring remarks from the Deputy Governor of the Bank of Japan yesterday. This optimism has spread across global equity markets, Bitcoin, and metal prices. Furthermore, better-than-anticipated US jobless claims...
S&P 500 E-minis have absorbed plenty of selling over the past few sessions but are yet to take the lows struck on Monday. While that doesn’t mean they won’t, it looks like futures may be settling into a new sideways range between 5350 on the topside and 5154 on the downside. Granted, the latter is only a minor level that was breached in the peak of the market puke...
USD/CHF appears to be defending the January low (0.8401) as it extends the rebound from the monthly low (0.8433), with the Relative Strength Index (RSI) climbing above 30 to indicate a buy signal.
USD/CHF Rate Outlook
USD/CHF snaps the recent series of lower highs and lows as it trades to a fresh weekly high (0.8662), with a breach above 0.8700 (61.8%...
Central banks captivate traders across the world because of their immense importance: they are the institutions responsible for managing a nation's monetary system. One change by a major central bank can send markets moving by directly impacting the cost to borrow and the value of money within a nation. Most recently, the Bank of Japan's decision to hike interest...
Though the EUR/USD is currently constrained, I believe we could see the euro and other major currencies strengthen against the dollar once equity markets stabilise, which they are trying to today. The greenback has lost its yield appeal due to weak economic indicators hinting at a potential recession in the US. Up until a couple of days ago, currencies with lower...
Shinichi Uchida, Deputy Governor of the Bank of Japan (BOJ), says the bank won’t hike interest rates when markets are unstable, delivering a clear message on what traders need to do to prevent them doing so again: create volatility.
It’s an amazing statement, signalling the BOJ can and will be bullied by markets to avoid doing what is right for the Japanese...
BTC/USD retraces the sharp decline from earlier this week to keep the Relative Strength Index (RSI) out of oversold territory.
BTC/USD Outlook
BTC/USD fails to extend the recent series of lower highs and lows as it struggles to close below $53510 (61.8% Fibonacci extension), with a breach above $57590 (78.6% Fibonacci extension) raising the scope for a move...
Overnight, the Reserve Bank of Australia acknowledged potential risks to the downside but overall, the policy statement suggests a greater concern with the possibility of inflation remaining elevated than with any shortfalls in economic activity. Cash rate futures currently indicate a roughly 90% probability of a 25-basis point rate cut by the meeting on December...
Germany's DAX index has broken down definitively from its 4-month symmetrical triangle pattern, hinting at a potential "measured move" decline toward the mid-16,000s next.
So far, the index has dropped sharply over the last 3 days to hit the 38.2% Fibonacci retracement of the rally off the November low near 17,250. A near-term bounce off this support level...
Gold has rallied back sharply after testing its 50-day MA near $2375 earlier today. The precious metal has yet to set a “lower low” since early June, keeping the near-term bullish momentum intact for now.
For this week, traders will be looking to see if XAU/USD can recover back to the $2450 level and ultimately break above the record high at $2485 to clear the...
