Archive for May, 2015

GOLD
Gold markets initially fell during the course of the day on Monday, but found enough support just above the 1200 level to bounce and form a relatively supportive candle. signalsWe believe that Gold prices are stuck between 1200 and 1215, so at this point in time we are simply waiting for it to move out of this range. If gold breaks 1215 level, we feel that, we would be buyers and aiming for the 1230 handle.
SILVER
Silver markets as you can see did very little during the session on Monday, as we continue to respect the $17 level for its supportive qualities. Because of this, we believe that buying short-term calls every time thie market gets close to the $17 level is probably the best way to play with this market right now. We would not be bothered with the futures market right now, and wait for the markets to break $17 level.
CRUDE
The light sweet crude market initially fell during the course of the day on Monday, testing the $59 level for support. And it was successful in founding it there and making a hammer to take enough bounce from those levels. This market seems to be in a bit of a crossroads. With that, we are a bit more comfortable buying on a break above the top of the hammer for the session on Monday, but quite frankly, we can’t deny the fact that it is going to be highly volatile. If we break the $58 level below though, things will get interesting, and we could find ourselves heading towards the $55 handle.

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EUR/USD
The EURUSD pair initially fell during the day on Friday, but found enough support below to turn things back around and form a hammer. The hammer of course is a very bullish sign and it is sitting just below the 1.15 level which we think is a sign that the trend changes. Above this level we feel that the market will be very bullish.forex
Forecast
The EURUSD pair broke higher during the course of the week, clearing the top of the shooting star from the previous week. Because of this, we feel that the market is going to test the 1.15 level, and once we get above there the complete trend has changed. We feel that this currency pair will be bullish in the coming week.
AUD/USD
The AUDUSD pair fell during the course of the day on Friday, testing the 0.80 level. Ultimately though, we ended up bouncing enough to form a nice-looking hammer and it appears of the market is going to continue to go higher. The US dollar continues to soften in general, so it makes sense that this market should continue to go higher. The market has recently broken out above the 0.80 level, and we are now testing that area for support which of course appears to be coming into the marketplace.
Forecast
The AUDUSD pair tried to break out during the course of the week, and closed above the 0.80 level. This reason is enough to make an opinion that market will start going higher. The fact that we cleared the 0.80 level is a very positive sign, and we do recognize that breaking the top of the previous week’s shooting star as well as the one before that is a very strong sign also. This shows that market will head towards 0.85 level.
GBP/USD
The GBPUSD pair tried to rally during the course of the day on Friday, but found the 1.58 level to be a bit resistive. However, this market does look like it’s going to be bullish overall for the longer term, and with that we are buyers on dips. Above 1.58 level we would start buying as we get a supportive candle at this level. We do not see potential in selling this market.
Forecast
The GBPUSD pair broke higher during the course of the week, touching the 1.58 level. We did pullback a little bit from there, but at the end of the day it does in fact look like we are going to go higher. If we can get above the 1.60 level, we feel at that point the market should continue to go much, much higher.
USD/JPY
The USDJPY pair initially tried to rally during the course of the day on Friday, but found the 120 level to be too resistive. Because of this, we feel that the market continues to consolidate, and with that we are playing in the range between the 118.50 level on the bottom, and the 120.50 level on the top. The market continues to be very confused, so therefore we anticipate seeing quite a bit of volatility in the near term.
Forecast
The USDJPY pair had a slightly negative candle for the week, but at the end of the day we’re still just consolidating in the same range. Because of this, we have no long-term set up available right now. Ultimately, we believe that this market does break out to the upside, so we look at pullbacks as potential buying opportunities, but currently are placing long-term trades. Short-term range bound traders might be able to take advantage of this market, but that’s about it at this moment as we simply grind.

Market Review for STI: Shares edged down and the Straits Times Index (STI) was 5.9 points or 0.17 per cent lower at 3,476.80 despite Wall Street’s climb overnight.sti chart Shares were still mostly lower as investors cashed out on stocks that went ex-dividend and digested various earnings reports before planning their next move.
Market forecast for STI:We may expect STI will touch 3440 after that it will take rebound.
Technical Indicators: RSI is at 47 and CCI is at -87.
ECONOMIC FACTORS:

  • Oil prices edged lower in thin Asian trade as concerns over a global supply glut persisted, with few fresh leads for dealers to track.
  • SINGAPORE’S manufacturing sector contracted for a fifth consecutive month in April, according to the latest purchasing managers’ index (PMI).
  • Indonesia’s economic growth in the first quarter slumped to its weakest annual pace since 2009, hurt by slowing demand from major export partners and a drop in global oil prices, the statistics bureau said on Tuesday. 
  • Gold retained overnight gains on Tuesday but was stuck below US$1,200 an ounce as investors waited on US nonfarm payrolls later in the week for clues on when the Federal Reserve will hike interest rates.
  • KENCANA Agri will report a net loss for the three months ended March 31, the palm oil producer announced late on Monday.
  • Noble Group has brought forward its first-quarter results announcement by two days, but the Asian commodity trading giant under attack from a research firm over alleged improper accounting did not give a reason for the move.