The British pound fell a bit during the session on Monday, but again of course we have just had the May Day celebrations, which of course would naturally work with lesser volume. I believe that the 1.2750 level underneath continues to be support, and I think that it’s only a matter of time before the buyers return on a pullback. I like the idea of reaching towards the 1.30 level above, and after that the 1.3450 level after that as it is the top of the previous consolidation area. I think that th…
frankooo's Blog
GOLD
After running above the $1,295-level in the middle of April as the post-March rate hike rally extended further, Gold prices have begun to reverse and have continued to head-lower as we march towards another FOMC rate decision on Wednesday of this week. This is relevant because over the past six months, the two rate hikes offered from the Federal Reserve have appeared to function like kerosene on a scalding hot market, further driving the bullish move in the wake of the Fed’s policy tightening. …
EUR/USD
The EUR/USD pair initially rallied during the day on Tuesday, but the 50-day exponential moving average has yet again offered resistance. It looks now that every time this market rallies, the sellers are willing to jump in. I believe we are going to reach towards the 1.05 handle underneath, but that is a massive barrier to overcome. Because of this, I think short-term scalping to the downside will more than likely be the best way to trade this market, and therefore short-term rallies offer value…
EUR/USD
The EUR/USD pair went back and forth during the course of the session on Thursday, forming a fairly choppy and neutral candle. This tells me just how difficult this pair is at the moment, and as a result I think we are going to continue to see downward pressure overall, but it’s not going to be a straight line down to the 1.1150 level, which I think is where we are heading. I also recognize that the downtrend line on the chart suggests that the dollar pressure continues, so it’s not until we bre…