Hi everyone. Let us look if there were any market trends today that we could have predicted and traded. Let us also try to predict possible moves that could be in financial markets in the nearest future. Let us talk about metals first.
Precious metals continue their medium downtrend
As I expected both silver and gold continued going down today. Both formed some sort of double bottoms on 1 hour charts, but I think they are temporary and the commodities will continue their downward trend. The target which I expect silver to reach is at 30 dollar per ounce, possibly 25 and gold around 1380 bucks per ounce. Both estimates are based on weekly Bollinger bands. As you may understand the prices may go much lower (I don’t think so). So, at the moment the strategy could be: sell the rallies at most recent resistance (for day and swing traders).
British pound maybe bottoming
When I look at various pound pairs (gbp/usd, eur/gbp, even gbp/jpy) I see that it is bottoming and can be ready to go up soon. This could even start tomorrow for we have very important news coming from Great Britain (Gross Domestic Product) at 8:30. I will be looking at proper levels of resistance to by a breakout upwards if it really occurs. It is too early to discuss those levels now for the price may move radically over the next 12 hours and the areas we mark now might be absolutely irrelevant at the time news comes out.
Yen is not able to break through
Yen is trying to beat its way and is not very successful now. I think sell high (other pairs against Yen) is the best strategy for now. Much will depend on the upcoming price action in oil. If US and the International Energy Agency will throw some 60 million barrels of oil into the market this can push the price of oil down pretty much. However, at the time the thing was announced correlation between Yen and oil disappeared, oil went one direction and Yen in the opposite. Let’s continue watching whether this trend will continue.
Canadian dollar can strengthen on Wednesday
Canadian dollar can also strengthen. If you look at usd/cad on 15 minute chart you will see a bearish reversal pattern (head and shoulders). You will notice that cad/jpy formed a double bottom and 123 pattern on 1 hour chart and has been going up today. Wednesday is important day for loonie for we have data from Canada coming at 11:00 GMT (Consumer Price Index). This can add some bullishness to Canadian dollar even before Wednesday comes.
So much about market trends today. Let us wait for tomorrow and see how market will react to the news from Great Britain. Good luck in your trades.
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Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.