Will The Fire Rooster Be The Market Booster

As the many antics of the inconsistent, sizzling and mischievous characteristics of the Red Monkey left significant tracks and marked 2016 with strong glitters and jitters, now new awakening is in force.

Along with the Chinese Lunar New Year, new expectations are rising. The urgency, energy and vibrancy of the desired changing environment will be set in motion with the Fire Rooster.

If there is something in your nature that do not understand or accept the Chinese zodiac, I would only  like to drag your attention to the signals of this New Year from another viewpoint and to implement some signs  into the tentative market forecasts.

The comfort provided by complacency and indifference is a past. The future will be fuelled by a certain ambition and assertiveness. 

And here is a slight glimpse of what is about to come along with the Fire Rooster.

A distinctive feature of the Rooster is not be quite and not to care about what is expected or desired. Do you find any resemblance with the new US President elect? Daring tweets, new Berlin wall, immigration ban. And meanwhile the Trumponomics is offering fiscal relaxation and protectionism, which is inflationary and is supposed to reinforce the US Dollar bulls. Yet it is too much and yet it is too soon to see how this will enact and how much time it will take to affect. One thing is sure – markets are at risk caused by the disappointment of Trump trade.

The conflicting elements of fire and Rooster’s self confidence and ambition could be clearly be read in Brexit drafts. How hard it will be and how Europe will handle it? Talks will not end soon, but talks are affecting the markets. Sterling will be extremely vulnerable and UK assets’ value will be marked down. 

Oil market balance is undetermined. The supply glut is still labelled by some unknowns. And markets are going to shift the mood into „Wait and see” mode. 

The Rooster is going to blaze with the characteristic of alarm clock and is going to brake the silence of uncertainties related to the banking sector. The optimisms towards the investible global banks is rising along with the outlook of higher interest rates. The economic growth is accelerating as policy gears are switching from monetary to fiscal measures.  

I have outlined just some fews, but within the geomagnetic field of importance. Of course some side effects such as plummeting of the Mexican peso and Turkish lira , Russia’s escaping the trend and China’s capital outflow shouldn’t be neglected.

In summary, the year of the Rooster will bring simultaneously optimism, movement, changes and turbulence on markets. And new opportunities on personal level.

Whatever you meet at this year unfold, I suggest you always to think about the present - how wide it is, how deep it is and how much might be yours to keep. Transform your fears into prudence, mistakes into intuition and desire into undertaking. Then the Rooster will be your booster!

EUR/USD Holiday Mode Set The Pair In Limited Range

Ahead of the holidays and along with decreasing liquidity the EUR/USD pair settled in narrow range today. The pair was seen very weak at the beginning of the week and on Tuesday reached lowest point for the last 14 years at 1.0351. Next days the pair recovered to higher levels and even tested the psychological mark 1.0500.

RSI moved from negative territory and currently is placed around mid-line. Stochastic crossed below the overbought area and is displaying strong bearish momentum. 

The short-term resistance is seen at 1.0520 (100-day moving average) and higher at  1.0665 (late November and 14th December highs). Looking to downwards support is now located at 1.0365 (15th December low) and lower at 1.0320.

Today’s economic calendar

Today the macroeconomic agenda is not offering significant events, but the more interesting will be released in the afternoon. And here is what is going to stir the markets today:

Euro-Zone Consumer Confidence for December, 17:00. It was -6 points and is expected to remain unchanged.

Existing Homes Sales for November, US 17:00. Previous figure is 5.60 million and the forecast is for a decrease to 5.50 million.

Gross Domestic Product (QoQ) for Q3, New Zealand 23.45. It was 0.9% and the expectations for lower number - 0.8%.Current Account Balance for the third quarter, New Zealand 23.45. The previous quarter it was -0.95 billion and the forecast to be changed to -4.89 billion.

AUD/USD in positive short term development

AUD/USD was trading elevated on Tuesday amid the rising sentiment.
The Reserve Bank of Australia released the minutes from the latest meeting earlier today and announced that will keep the monetary policy unchanged -  the main interest rate is left at 1.75%.

The pair caught the positive mood and jumped above the current resistance level at $0.75. The intraday high was pinned at $ 0.7513, a level not seen since 9th of June.
The daily support is located at $ 0.7447, which coincides with Fibo 50% retracement level. Until staying above, the short term outlook is bullish.

But having in mind the expected turbulence in market during the next days, it is not quite sure how this exactly would result the pair. Hopefully AUD/USD will keep the positive medium term development.

                                

                               Chart AUD/USD H1

Gold, pressure, adrenalina

Since the beginning of the year we witnessed a brilliant golden performance. Up ahead in the distance a shimmering light embraced first quarter and shined through the amazing 15.8% increase.

Last December gold was knocked down, reaching $1050, but quickly recovered and pinned new highs at $1282 in February and $1305 in April.

From technical viewpoint the February rally significantly pushed the price up and set bears calm, as they have been at large for the last two and a half years.

But the fundamental aspect caught traders in a landslide, facing a silhouette of bewilderment, as US economy strongly blows the wind of change. Fed’s rate hike definitely sube la adrenalina.

The sense of a suspense shivered and shadowed. So now gold walks the empty street on the boulevard of broken dreams. The restless stream is now caught up within the sound of silence.

Currently gold prices are under huge selling pressure during the last six sessions.  

The strong support located at the 55-day EMA was conquered and gold split the doubts that for shortly could move up, even hit intraday high at $1234.30. In elevated perspective, the resistance is planted in $1250.00 level and a vision of softly creeping breakout could lead the price towards $1265.00. A step back is very likely to support-turned-resistance at $1243.00.The short term rally could bring some small profits, but gold will loudly break the sound of silence in the long term run.

US stocks strongly uplifted

US stocks recorded strong gains on Tuesday, influenced by the excellent performance of US new home sales in April. 

New home sales surprised with 16.6% jump and thus reached levels not seen from 2008.

Cheered by the news bulls favored the major indices. Dow Jones climbed 1.22% to 17,706.05 points, S&P 500 is up by 1.37% to 2076.06 points and Nasdaq closed higher with 2% to 4861.05 points.

Among the news of the day was the future cooperation of Red Bull with GoPro. Shares of GoPro rose 4.86 % after the news release to 9.71 dollars per share. Technological and financial sector performed best within S& P500. Shares of Visa leaped 2.81% to 79.38 dollars, Morgan Stanley marked a growth of 2.16% and JPM pushed up with 1.7%. 

Technically speaking S&P 500 is extending its upward movement, supported by the liquidity inflows in the economy. The strong rally settled the price above 1900 level. The next resistance is located at the psychological level at 2130. In case of reversal, key support levels might be seen at 1970, 1915 and 1870.

Working with Stop-Losses and Take Profits

ActivTrades presented an exciting webinar yesterday with guest speaker Paul Wallace, who talked about stop-losses and take profits.

Risk and money management are of great importance for building a successful and profitable trading strategy. There are several types of stop losses and take profits that could be implemented into trading plan. And it’s an excellent guideline to set an insight when to get out of the market and take your profit.

If you are willing to improve your trading skills, take advantage of this valuable educational opportunity and follow this link!

The forthcoming webinars scheduled by ActivTrades are promising and irresistible.

Brexit nears and this uphill battle will be discussed by Paul Wallace and Malte Kaub.

Probably we will get some hints how to trade Brexit!

Furthermore ActivTrades will present some innovations about Metatrader.

All you need to know is here!