What a market we are experiencing today!!! It spells money!!!
As we can see from the trading day yesterday the oil continued its movement in the direction of an uptrend reaching the price of $75.38 a barrel. This was a 10 month high for oil after the amazing summer of 2008 when oil reached $140 a barrel. This direction continues to support the weakening of the USD, while supporting the CAD and AUD, the commodity driven currencies.
When will this trend stop??
Maybe a few traders have an idea when this will end, however when we look at technical analysis we continue to clearly see the trend. The announcements we mentioned above coming from the US have already been published and both were positive for the USD. Will we see a market correction or will the trend continue? Question left unanswered will be answered by the traders during the end of the London session and into the US session. Make sure to always examine your support and resistance lines before entering your trades.
Let’s take a closer look at a few pairs:
USD/CAD
I’m not going to talk about the oil, but we can talk about this pair and how it is affected by the oil. We can find that yesterday this pair made more moves supporting the price of oil, leading to a stronger CAD. Here are the Support and resistance lines for this pair today.
GBP/USD
Employment data in the UK today showed that the country lost 20.8K jobs, less than the 24.5K expected, helping the cable gain a bit against the buck. The gain put it above the 1.6000 level temporarily, though it has come off a little since then going back to the range it was trading in during the last few trading days.
Fundamentals: We have a few announcements today that will affect the market.
Coming from US we have the “Core CPI M/M”. The previous announcement was 0.1% and the forecast for today is 0.1%. Released at (12:30 GMT).
One more announcement coming from the US “Unemployment Claims” which will be released at 12:30 GMT, the previous announcement was 521K and the forecast for today is 524K.
