Gold, silver, and crude oil all reached new highs yesterday before a selloff in commodities pushed prices down and the three commodities finished the day lower. However, this may just be a result of short term profit taking before the next rally.
Today’s market events are:
EUR – German Industrial Production – 11:00 GMT
Expectations: 1.1%. Previous: -0.8%.
An output below market expectations may hurt the value of the EUR/CHF. The next support for the pair rests at 1.3000 followed by 1.2930. Resistance comes in at 1.3200.
Oil – Weekly Crude Oil Inventories
Expectations: -1.3m. Previous: 1.1m.
A larger draw down than expected could help continue to push prices up above the $90 level until the $100 level.
NZD – Official Cash Rate
Expectations: 3.00%. Previous: 3.00%.
New Zealand is not expected to adjust its interest rate. Yesterday Australia held its interest rate steady and hinted at a looser monetary policy. Perhaps the same can be expected from New Zealand. If this is the case further bullishness in the AUD/NZD should be seen with the next resistance levels coming in at 1.3070 and 1.3210.
Spot gold prices rose to a new all-time high yesterday before falling lower. The hourly chart shows the price is currently trading near the congestion area of $1,390. This may present an opportunity to enter long with a target at the resistance level of $1,410, followed by the all-time high of $1,431. Forex traders can place a protective stop below the support level of $1,380 for a trade setup that allows for a respectable 2:1 profit to risk ratio.
Other relevant articles you may like
Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
