FROM: PETER CRUZ DATE: 7th August, 2014 – Thurs. Market Brief Markets are pointing to the rally in gold and the Japanese Yen and weakness of the Australian dollar as signs that risk appetite is frail. The overnight move in gold took it above its daily Ichimoku Cloud resistance zone – which suggests a likely continuation of the rally. Gold prices tend to rise when investors shun yield-earning assets for the perceived safety of gold – which earns no interest. The fall in USD/JPY Wednesday – which saw the yen register a 0.5% gain within minutes – alarmed traders for the pace and abruptness of the move. The low-yielding yen is unpopular as an investment except in times of financial market distress when liquidity and stability are more important than yield or economic growth. The Australian dollar – considered a forward-looking indicator of global growth due to its correlation with commodities – fell sharply back into its Bollinger downtrend channel on weak jobs data Thursday. On the data slate there’s German Industrial Production; UK BOE Asset Purchase Target; UK BOE Rate Decision; Euro-Zone ECB Rate Decision; US Continuing Claims and US Initial Jobless Claims. SELL EUR @ 1.3370 OR BETTER - STOP @ 1.3440 – TARGET @ 1.3300 – no change SELL GBP @ 1.6870 OR BETTER – STOP @1.6930 - TARGET @ 1.6730 – no change BUY USD/JPY @ 102.10 OR BETTER – STOP @ 101.60 – TARGET @ 102.90 SELL CL0915 @ 97.10 OR BETTER – STOP @ 98.05 - TARGET @ 96.10 SELL XAU @ 1306 OR BETTER – STOP @ 1315 - TARGET @ 1280 SELL XAG @ 20.05 OR BETTER – STOP @20.50 – TARGET @ 18.95 GOOD LUCK AND HAPPY TRADING PLS. NOTE: 1. ALWAYS REMEMBER TO PUT STOPS WHENEVER YOU TRADE, MARKETS ARE VERY VOLATILE. 2. THE ABOVE BRIEF IS MY PERSONAL OPINION AND DOES NOT CONSTITUTE ANY PROMISES OR GUARANTEES OF PROFITS. TRADING IN CURRENCIES AND COMMODITIES ARE HIGH RISKS AND IT IS NOT FOR EVERYONE.
Posted on: Thu, 07 Aug 2014 04:13:40 +0000
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