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Monday, July 18, 2011

Market trend analysis for 18th of July 2011


Commodities will continue their uptrend soon

 

Hi, everyone. Let us do market trend analysis for today. I hope you have seen how calm the markets were today. Well, I basically mean currency markets. This cannot be said about silver and gold. Rules of playing have been changed for the commodities since 15th of July and I guess this is going to have a much bigger influence on the securities that we see it now. They are continuing rising and after a nice retracement at 39.50 level silver was able to launch another attack and break the level. I think the security is ready to see its’ all time highs now. So, if you are not able to trade futures or spot market, maybe buying real metal will be a good means of investment for you. Like always, I want to warn you not to take what I write here as some signal to buy or sell any security. This is a free blog about trading and all information here is free of charge. It is educatory in nature, not advisory. 

Pound might collapse in no time

 

Pound was a little weak today. It strengthened at the start of the day, but failed to do it later. Eur/gbp for example, hit a very important support level and jumped off it, indicating that a medium term low has been established. Gbp/jpy after rising strongly last week, formed a reversal pattern on Friday (and today) and went down a little too. The same can be said about gbp/usd. You could actually sell it by placing a sell stop order below 1.6061 level. This would have been a good reversal trade. Pound keeps some efforts to fight commodity currencies (aud, cad and nzd), but I think it will fail soon, for technical picture is becoming more and more bearish bit by bit. It might retain some strength against chf though, because chf strength is overstretched now in all pairs. 

Economic news can bring back volatility tomorrow

 

We did not have any serious news today and this could be the reason why markets have been so calm. However, in my opinion storm is coming for we have three important pieces of economic news tomorrow. Firstly, it is data from Australia (AUD Reserve Bank's Board July Minutes) at 1:30 GMT. This could send Australian dollar and other commodity currencies and real commodities flying. Then we have data coming from Europe (EUR German ZEW Survey), which will impact Euro pairs. Finally data from bank of Canada (Bank of Canada Rate Decision) will be closely watched by all currency traders. I believe this piece of news will make a huge impact for the markets.
Let’s wait and see what tomorrow brings.

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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.