12 February, 2016
On Thursday, the price of gold strengthened by 4% and reached its year highs. The price has been growing amid an increase in demand for safe-haven assets, such as gold and the Yen.
A recent press-conference with Fed’s Chair Janet Yellen has influenced price dynamics. The head of the Regulator noted that instability in global markets created serious risks for the country’s economy. The dovish rhetoric of the Fed eliminates the chance of a rate increase at the upcoming monetary policy meeting and significantly lowers the possibility of an increase during the first half of 2016.
Support and resistance
Bollinger Bands indicator on the daily chart is directed up. The price range is widening actively, but the price has been out of it for quite a long time. MACD is still keeping its strong upward trend. Stochastic is in the overbought zone and trying to turn down.
According to Bollinger Bands and Stochastic, a downward correction is possible. It is recommended to wait for clearer trading signals.
Support levels: 1232.29, 1221.79, 1210.25, 1200.67, 1191.21, 1181.29 (10 February low).
Resistance levels: 1248.00, 1263.05 (11 February high).
Long positions can be opened after the breakout of the level of 1248.90 with the target at 1263.00 and stop-loss at 1235.00. Validity – 1-2 days.
Short positions can be opened after the breakdown of the level of 1235.50 with the target at 1210.00 and stop-loss at 1250.00. Validity – 2-3 days.
US stock indices went up on Wednesday after the release of the minutes of the US Fed meeting in January, which was devoted to the US monetary policy. Dow Jones Industrial Average rose by 1.6%, Nasdaq Composite - by 2.2%.
Past week was marked by a two-day speech of Janet Yellen, the head of the US Fed. Mrs. Yellen did not give a straightforward answer regarding the interest rate increase at the US Fed meeting in March...
Yesterday, US Ministry of Energy announced about unexpected decline of oil and oil products reserves by 754 million barrels over the last week. Spot-price of crude oil Brent has grown over 31.80 USD per barrel...
Over the past 2 weeks the Yen has significantly strengthened its positions against the USD due to the increasing demand for the safe-haven currency. Mixed macro-economic data on the US economy has decreased a chance that the US Fed will tighten monetary policy...
The currency pair is traded at the strong level of 1.0960 –1.1060. In case of maintenance and testing of the level and respective confirmation (for example, a pattern Price Action), we recommend to open long positions. Stop order can be placed below the signal line...
Despite that fact that the data on Non-FarmPayRolls was below the forecast (151 000 against the forecast of 190 000 and 262 000 new jobs in December), the USD has grown against the major currencies. The rise was caused by the other data on the US labor market in January...
While market participants are waiting for the release of NFPR (Non-Farm PayRolls), oil prices are gradually declining since the opening of the trading day and at the beginning of the European session...
API (American Petroleum Institute) report, released this Tuesday, showed that last week US oil stocks rose by 3.8 million barrels. Obviously, it was a bad news for oil prices, as heavy stocks of oil in the USA creates situation when supply outruns demand in the world market...
Today, the Global Dairy Trade will publish price index for dairy products, reflecting weighted average of the change in price in percentage. For the economy of New Zealand, which is the largest exporter and supplier of the dairy products to the global market, dairy prices are of great importance...