Friday, January 15, 2016
Risk currencies suffered again for another day of trading spawned by weakness in WTI oil, global equities, and disappointing US economic data. For today, the EUR/USD pair rallied 130 pips, from the session low at 1.0855 to the session high at 1.0985, on safe haven flows, after the US Retail Sales figure and US PPI (Producer Price Index) data underperformed for the month of December. Retail Sales excluding Autos fell -0.1% versus the market forecast of +0.2% climb in sales, falling to its weakest level in 6 years (2009). The Core PPI came in at +0.1% m/m, which was in line with expectation, but weaker than the previous month's value at +0.3%m/m. This news created weakness in the greenback, and helped to support the common currency which was already benefiting from the risk-off trading environment. GBP/USD and AUD/USD are two currency pairs that continued to see a measure of dollar strength, following the release of these announcements.
In today's webinar, we discussed the use of the CCI indicator and it's purpose in timing the entry & exit of trades. We also covered price action in EUR/USD, and looked for opportunities to place trades around known levels of support & resistance.
Tuesday, January 12, 2016
During today's trading activity, market participants resumed confidence for the first time this week, by rotating back into riskier assets, after global economic concerns eased for a brief period of time. The Chinese Yuan and Asian equities stabilized after weeks of increased volatility and sharp declines, causing high-beta currencies like the AUD (Aussie), NZD (Kiwi), as well as the USD (greenback) to be supported on risk appetite. The EUR/USD slid from its session High at 1.0900 to its session Low at 1.0820 for an 80 pip range.
At the moment, market sentiment is shifting back into the safe haven following another sharp drop in oil prices which is weighing on energy-related stocks. This helped to support the EUR/USD pair, and we are now witnessing the common currency pare back its losses and it is currently positive for the day, since its above the session open price. At the time of this writing, spot is 14 pips above the opening price (1.0859).
In today's webinar, we discussed price action in the EUR/USD pair and looked for opportunities to enter a trade around known areas of support and resistance.