Oct 26


  • BY:
  • octobre, 26th, 2015 19:56 +00:00

Good evening,

This is a session in the FX market where volatility disappeared as traders are waiting important event in the economic calendar this week that would confirm the short term trend or will trigger reversals. EurUsd is trading at 1.1050 (+0.35%), up 39 pips and GbpUsd is gaining 45 pips at 1.5352 (+0.30%). UsdJpy, after it failed last week to rise above its 200SMA, is losing 41 pips at 121.01 (-0.33%).

Crude Oil is trading below the most relevant daily moving averages and it may test soon the 43.81 $/barrel support. The Commodity is trading at 44.2 $/barrel (-1.46%), down 54 cents. Gold is trading unchanged at 1,163.9 $/oz, and is making recently lower highs. The shiny metal, in a multiyear bear market, needs more positive market sentiment to develop a bullish trend. From a global macro prospective, the weak demand in China and the deflationary environment in developed economies are factors that may keep the commodity in a medium term trading range. A consolidation above 300 $/oz would close several short positions but only the breakout of the supply line generated in September 2011 when the commodity was trading above 1,900 $/oz would end the long term bear market. The breakout area should be in the 1380-1420 $/oz.

The S&P500 last week in US rose above the 61.8% Fibonacci retracement from its historical top and if the FED  should postpone a rate hike is possible to test again its record high. Tomorrow the UK GDP data (09:30 GMT),Durable Orders in US (12:30 GMT) and US Consumer Confidence (16:00 GMT) will make the trading session volatile thus traders should be prepared to see wild price swings in a short time frame.