Sun is shining, bringing new promise of a glorious day, let us hope it is a sign of a healthy start to a healthy week and month! As I have said, it will be a busy week with only 2 currencies not directly hit by news, the CHF and NZD. A tricky week to decide whether or not to take trades, and considering most of the crosses I cover are at point of extension/exhaustion if trades do come up it will be taken with very small capital allocation. I just do not want to risk it with this group of central bankers currently running the global money supply, they are lunatics of the highest degree. This week we have the Australian RBA, the Canadian BOC, the English BOE, the European ECB all releasing their monetary policy statements. Plus we also have speeches from the Japanese BOJ Governor, Kuroda and Uncle Ben, the Chairman of America’s Federal Bank.
Not much to report from Friday’s trading due to the half day in the American markets, everything was very quiet. So here are some articles from the weekends reading.
What’s The Difference Between Markets & Reality?
When They Say The Global Economy Is Growing They Really Mean This…
E-Gold Founder Launches New Gold Backed Currency
Pound Gains as Growth Accelerates, Mortgage Rise: Gilts Advance
Aussie Set for Longest Drop Since 1997 After Takeover Rejected
Canada’s Dollar Weakens a Second Month Amid Stimulus Speculation
DATA HIGHLIGHTS TODAY – AU Building Approvals. JP BOJ Governor Speaks. UK Manufacturing PMI. US Bernanke Speaks. US Manufacturing PMI.
AUDUSD – Has had three days of holding onto to support and whilst momentum is turning there is no sign yet of divergence. With RBA tomorrow unlikely to cut and certainly won’t hike rates the focus will be on the statement from Glenn “6 months behind the curve” Stevens. My guess is that he will continue to talk down our economy and currency so the RBA (and he) make more money at the expense of our economy and currency. Resistance: 9300/9428/9532/9705Support: 9138//9000/8890
EURUSD – Still producing HHHL’s but finished a little weaker in light trade on Saturday morning. Still prefer to be long the combined currency as a difference to the weak Aussie, weak Greenback and weak Yen and over extended Pound. Resistance: 13644/13712/13801Support: 13488/13266/13150/13000
GBPUSD – Decisively above 1.63 now but as mentioned is also well into extension and exhaustion areas. Can’t buy it but am not ready to sell it. Resistance: 16474/16610/16740Support: 15950/15830/15755
NZDUSD – A doji LHLL bar shows little interest, reflective of the US holiday. Still, would be looking for shorting opportunities here.Resistance: 8475/8535/8607Support: 8190/8131/8100
USDCAD – In the extension sell zone with momentum divergence gives us an indication of a trade emerging, just waiting for price action to show us that sellers are present.Resistance: 10673/10830/10985Support: 10420/10195/10100/10000
USDJPY – Same as the Loonie, the ¥ is just a matter of waiting for price action to show us sellers are stepping into an overbought market. Resistance: 103.10/104.65/105.57Support: 100.00/9690/9580/9497
GOLD – Is bouncing along above support and wearing off the selling momentum, building for a new wave of selling? Perhaps.Resistance: 1265/1,307/1,350Support: 1,225/1,180/1,000