The GBP/USD pair initially fell during the month of January, but as you can see spent quite a bit of time trying to gain support. It appears that the 1.65 level now offers enough support to become a potential buying zone, as the monthly candle is starting to turn into a hammer.
The NZD/USD pair broke higher during the beginning part of the month of January, but as you can see fell short at the 0.84 level. The market is currently sitting above the 0.8150 level, which is significant support.
Into the end of 2013, financial markets were broadly influenced by widespread weakness in the US Dollar. A significant portion of these Dollar declines were driven by changing central bank expectations as the US Federal Reserve delayed its plans to start making monthly reductions in quantitative easing stimulus.
The XAU/USD pair (Gold vs. the American dollar) scored a gain of 0.84% on increasing demand for protection against the trouble in emerging markets. The pair traded as high as 1270.05 even after the Federal Reserve announced that it will trim monthly purchases by another $10 billion to $65 billion.
The WTI Crude Oil markets initially fell during the session on Wednesday, but as the market progress through the session, we saw enough buyers step in to form a hammer. With that, it suggests that the market is in fact going to try to go higher, and on a break above the $98 level I see no reason why it won’t.
The EUR/USD pair had a volatile session as one would expect, as the FMOC meeting certainly would have taken the limelight. Anytime there is uncertainty in the market like this, a lot of traders will push the markets around simply trying to get out of the way.
The USD/CAD pair initially fell during the session on Wednesday, but bounced off of the 1.11 handle in order to form a hammer. This hammer of course suggests that the market is going to continue going higher, and as a result we feel that this market will more than likely test the 1.12 handle for resistance yet again.
The AUD/USD pair tried to rally during the session on Wednesday, but the 0.88 level offered enough resistance to push the Australian dollar back down. This is where I expected to see resistance, so quite frankly this move wasn’t that surprising.
Check out the Forex signal for the USD/JPY pair here.
Check out the Forex signal for the GBP/USD pair here.
Check out the Forex signal for the EUR/USD pair here.
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After a long, strong uptrend that has been in force since last summer, the first month of 2014 has seen a pull-back develop into a bearish channel.
First things first: there is no doubt about it; we are in a strong uptrend. Anyone who has bought and held over the past months will have made or be sitting on some very nice profits. It is hard to trade this pair technically for short-term profit, so riding the trend has been the best strategy.
Gold lost ground against the American dollar and closed the day at $1256.54 an ounce. Recent price action shows that market players took a cautious stance and liquidated some of their positions ahead of the Federal Open Market Committee policy announcement.