BackgroundYesterday's bearish bias was confirmed as EURBGP moved deeper below the 13 Day Moving Average, with selling pressure steady throughout the day. With immediate studies being negative we are expecting any bounce to be temporary and for the downside to develop.Management and risk descriptionA move through 0.8393 means the stop can be lowered to break…
Read more
The US shale oil industry has seen a marked recovery since February last year because of higher oil prices. The US Baker Hughes data, that records the number of new Oil Rigs, is showing additional Rigs added every week. The increase in shale oil supply has offset OPEC’s recent output cut effort to an extent.…
Read more
Schizophrenia is a disorder of the mind characterised by hallucinations and delusions. This is, in my personal view, not too harsh a term to apply to the euro. After all, it is a currency whose DNA was created in an economic experiment that sought to weld 19 diverse economies together under the rule of the…
Read more
BackgroundAUDUSD has been travelling lower since it topped out in March and has now broken another important level at 0.7388, suggesting we can head back to the January lows. We can sell a rally to take advantage of this as 0.7377-88 looks like it will cap any recovery.Management and risk descriptionWe will iniitally risk 40…
Read moreThe German industrial output data for March edged higher with the print coming in at -0.4%. This is much better than the forecast of -0.7%, mainly due to lower energy prices and bolstered global demand. On a less bright side, the German investment good output fell 1.2% from the previous number. All in all, we…
Read moreThe dollar index saw a rebound with strong bullish momentum on Monday after hitting a 6-month low of 98.40 last Friday. This morning, during the European session, the dollar index bulls have recovered the significant resistance level at 99.00. USD/JPY hit a high of 113.83, last seen on March 15. The dollar index has given…
Read more
DAX futures (JUNE 2017 contract is FDXM7, continuation contract is FDXc1) The market is consolidating as the initial slip back from the highs is now settling down. Technically the daily chart retains strong momentum, but still looks a touch stretched. The RSI is at 75 with the Stochastics just beginning to drift a touch lower…
Read more
BackgroundMonday saw strong upside in USDCHF. Friday's minor upside was not only continued, but accelerated with gains of more than a big figure. This fresh demand took the currency pair aggressively through the 13 day and 200 day moving average area, and to the most positive levels traded for three weeks. The speed and scope…
Read more
BackgroundUSDJPY continues to trade in line with the yield on the 10-year US Treasury bond and that market has found its feet after large short positions were squeezed out. The way is now clear for yields to move higher, if the “hard” economic data starts matching “soft” (survey results) data. The main data points due…
Read moreToday the losses in the banking sector weighed on the broader index, yet the relative strength between the two leave the potential for ASX to outperform and move towards 6k without it. Banks weigh on ASX yet another attempt at 6k is possible Banking has dragged the ASX200 lower by the ‘big four banks’ who stated…
Read more