USD/JPY Climbs Higher

During Wednesday trading the US dollar experienced a remarkable increase against the Japanese Yen. After a steady upward movement, the dollar added 207 pips to close at 114.44. 

In the early trading hours today the USD/JPY pair marked a high at 114.80, a level that has not been visited since late February. Shortly afterwards the pair dropped to 113.78, but quickly resumed to upwards and is currently trading at 114.43. 

RSI is currently placed at 56 level and retreating from overbought levels. Stochastic is displaying lack of momentum but still pointing north. 

The pair is staying well above the 20-day, 100-day and 200-day exponential moving averages which indicates bullish potential while bears seems to be limited in the long-term. 

Support is seen at 114.00, next one at 111.00 and lower at 109.20. Resistance is now located at 116.45 and 118.30.

GBP/USD: Posting Highs But Still Remains Range Bound

Before the release of the money and credit UK data today the GBP/USD pair has been struck within the 1.24 levels. But the better-than-expected reports pushed the pair higher to reach daily high at 1.2526. Afterwards the retreated slightly and the current market price is 1.2492. 

As it is clearly seen on the H4 chart the pair crossed over the 20-day, 100-day and 200-day exponential moving averages, but meanwhile the 100-day and 200-day EMAs are staying flat, which is hinting neutral shades. 

RSI is muted on 56.50 level while stochastic is pointing north, nearing extreme overbought conditions, but displaying bullish momentum. 

The cable held above the daily prevailing mood from 1.2380 area, but still the pair is capped by the strong resistance at 1.2529.

EUR/USD Rocks The Cradle Of Uncertainty

A slight elevation was seen today during the European session on the EUR/USD pair, having marked an intraday high at 1.0687. Bur shortly afterwards the pair was down and posted a low at 1.0564.

It’s a quite important week for the US dollar with the NFP data upcoming on Friday, along with the preliminary estimates on Q3 GDP and the ADP numbers on Wednesday. Meanwhile Europe is offering a major event with risk behaviour on markets – the Italian referendum. The coincidence and the combination of these fundamentals implies strong influence on the pair. 

Considering the above the pair is teased to try levels higher that 1.0600. In anticipation of the development it’s not clear yet weather the bulls will be strong enough to conquer higher levels or will step down and retest the 1.0500 level.

RSI is currently located around 45 and is displaying lack of momentum. Stochastic is recovering from the oversold area and showing weak bullish signs.

Resistance is seen at 1.5898 (the 200-day SMA) and next is placed at 1.6022 (the 20-day SMA). The 100-day SMA is acting now as a support and is currently being at 1.5898. The key support remains the 1.0550 level. 

Currently both fundamentals and technical readings are not talking sure enough to set clear direction for the pair. So in this uncertain situation I'm going be only an observer.

    

Tuneless Cable

Tuneless GDP data, along with the observed matter for the Q3. Strong investment numbers, better than expected CBI retail sales November posts.

But this seems not to be powerful enough to influence the Sterling. 

Yesterday the GBP/USD pair marked choppy trading but with very close values of opening and closing price, respectively 1.2437 and 1.2446.

Technical reading are showing neutral to negative stance. RSI is placed within middle lines, while stochastic is displaying overbought market.

In the short-term the pair is still consolidating around 1.2400 level. Support is located at 1.2203 and lower at 1.2079. Resistance is seen at 1.2529 and higher at 1.2665.

The Pleasure Cruise Of US Dollar Against The Japanese Yen

Flown in the swiftness of time now the safe-haven is biting the dust on the roller coaster ride.

The Japanese Yen is currently weaker and pressured by the greenback. During today’s trading the USD/JPY pait marked an intraday high at 113.52. A level not seen since late March 2016.  

The mixed Japanese macro data released today additionally influenced the pair.The Nikkei Manufacturing PMI didn’t achieved the target set. But the Japanese leading economic index for September posted relevant numbers.      

Technical readings are shifting the mood into positive sounds. The price is placed well below the 50-day, 100-day and 200-day simple moving averages. RSI is placed within extreme values and showing bullish trend. Stochastic is also pointing extreme overbought market but displaying lack of momentum. 

First support is located at 109.19 and second at 108.52. Looking to the upside, bulls are targeting the first resistance placed at 113.82. In case of conquering it, next will be thinking of 114.63.

EUR/USD Poised To Extend Slide

Yet another set of selling pressure fell upon the EUR/USD pair today. The US dollar is getting stronger, the pair is marking its lowest level for the last almost 12 months and is currently trading at 1.0556.

The US marco data released today posted positive numbers, much better than expected. The FOMC minutes from today’s meeting are confirming the market attitudes for the upcoming rates hike. Given above the US dollar’s elevation seems to be reasonable.

During the afternoon trading the pair posted intraday low at 1.0523 even though shortly afterwards managed to recover slightly.

Technical readings are showing oversold market. RSI is placed at 30% area, while stochastic is displaying strong bearish momentum. 

Currently the EUR/USD pair is exposed to further downward slope, having in mind that is placed below 1.0600 area and also below the moving averages. 

Immediate resistance is seen at 1.0605, where now is lying the 20-day SMA. Support is located at 1.0525 and lower at 1.0500. 

Golden Bulls Yet Among The Market

The US dollar’s strengthening, the expected interest rates hike and the lower risk and volatility in stock markets are most important factors that are driving gold prices down. The exposed Trump’s program for boosting the GDP definitely will lead to rising interest rates and stronger US dollar, which is attracting for investors. Hence this is bullish for the dollar, gold is going to suffer. 

But in case we are having long term interest rates increase, this does not always mean that we will have falling prices in gold. According to the World Gold Council the average gold returns were positive as long as interest rates increased gradually and didn’t reach extremely high levels - over 4%. Some economists have shared the opinion that during Trump’s presidency a recession will be a fact, because the current expansion on stock markets is taking too long time. In this common, the investors in gold mining companies should consider this and take steps for profit taking, but instead of this the observation is that they keep their investments for a longer term. 

And while we are witnessing the brutal post election sell-off, shall we abandon all things gold?

In fact the post elections fever dumped the gold hedges  and the gold suffered huge drop for the last 3 weeks. Obsessed by the fear of the unexpected, traders generated enormous sell offs and couldn’t think deeper over the market situation. If looking inside the gold stocks’ fundamentals there might be found an amazing way to fight the prevailing fear. 

The gold miners just released their third-quarter results, which proved very impressive. I suggest you to look at the below GDX Component Comapnies’ Fundamentals Q3’2016 table.  Lower costs and higher gold prices usually lead to surging operating cash flows and profits and the gold miners’ fundamentals are stronger now. So golden bulls are still among the market.