Tuesday, August 26, 2014

USD/JPY Gold held losses

Gold held losses near a two-month low on speculation that the U.S. Federal Reserve will raise borrowing costs next year, strengthening the dollar and damping demand for an alternative investment. Bullion for immediate delivery fell as much as 0.2 percent to $1,274.82 an ounce, and traded at $1,276.25 at 8:18 a.m. in Singapore, according to Bloomberg generic pricing. The metal on Aug. 21 dropped to $1,273.14, the lowest level since June 18, as the minutes of the Feds last meeting signaled that policy makers may raise interest rates sooner than anticipated.

USD/JPY continues to trade at high levels on Tuesday, with the pair trading just below the 104 line. In Japan, the Services Producer Price Index posted an impressive 3.7% gain, matching the forecast. Over in the US, Core Durable Goods declined by 0.8%, but Durable Goods Orders set a monthly record with a huge jump of 22%.

When it comes to forex trading these days everyone should know the rules by now: the central banks dictate market direction. Last week’s Economic Symposium in Jackson Hole, Wyo., will be regarded as a watershed moment for the eurozone’s survival. Despite Federal Reserve Chair Janet Yellen’s “neutral or less dovish” tone, it was “super” Mario Draghi’s assertion that the European Central Bank (ECB) stands ready to act again that has quickened the pulse of capital markets.

 USD/CHF  Daily
13::15GMT - Though the mkt. broke the 0.9139 sup., downside was limited to 0.9135 before recovery back to the day high at 0.9164. Clearance  of the latter should be s/term positive and we could then see a retest of Mon's high at 0.9178. Sup. is at  0.9135.N.I.

Monday, August 25, 2014

How to Trade Gann Theory

 Making stock or Forex trades using Gann theory. This is a popular style of analysis that looks at patterns and repeatable price action based on time and is something traders need to learn. Many traders have decided it best to examine Gann Theory a bit further and learn how to trade with it. It takes time to learn but traders who learn how to use it make more winning trades.
There are three trends applicable to any timeframe which you are analyzing: Minor, Intermediate and Major. That also means that there are three types of swing highs and lows that correspond with these trends. Using the Gann swing highs and swing lows we can labeled Gann Swings are actually intermediate swings. In Gann trend analysis, a downtrend occurs when price breaks a swing bottom. If price moves downward in a defined uptrend but does not break a swing bottom, it is called a correction and the trader has no need to exit their long. A break of a swing bottom would constitute an exit signal.


13::20 GMT - Step back this am. is a bullish test of Fri value; it  follows Fri.'s spike test of 103.50 which easily retained the 103~ breakout. With last week's rise, the USD has moved decisively out of the YTD apex- now a hold above 104.10/ the start-Aprhighs confirms & points further up (to 105.45/ the YTD high.)

Friday, August 22, 2014

price of spot gold

The price of spot gold edged towards a two-month low on Friday morning as analysts weighed up the many factors that have been causing the commodity to trade in a tight range in recent months. Gold slipped to $1,279 per ounce in morning trade. It had been on a five-day losing streak and was headed for its worst week in five. That trend had turned around by midday London time with the price moving higher as tensions re-emerged in eastern Ukraine. But this could prove to be a brief respite with gold watchers predicting a slight fall in the longer term.In the 10 years up until last December 2012, gold had surged around 400 percent, with the help of low interest rates, extra Federal Reserve liquidity and concerns over the global economy. In 2013 it lost 30 percent of its value with the Fed beginning to dial back its $85 billion-a-month stimulus program. This year, meanwhile, the precious metal has added 6 percent to its price with a range of factors influencing both speculators and physical gold buyers.

Thursday, August 21, 2014


The US dollar continues to gain ground against the Japanese yen, as USD/JPY flirts with the 104 range early in the North American session. On the release front, Japanese Manufacturing PMI improved to 52.4 points, beating the estimate. US Unemployment Claims beat the estimate, coming in at 298 thousand. Later in the day, we’ll get a look at the Philly Fed Manufacturing Index. The markets are braced for a sharp drop in the July reading.
In a highly anticipated event, the Federal Reserve released its policy meeting minutes on Wednesday. The minutes were hawkish in tone, with the Fed saying that an interest rate hike could come sooner rather than later if employment numbers continue to improve. The Fed said that the economy continues to improve, but the QE program, which is scheduled to wind up in October, will not be accelerated. The US dollar was broadly higher after the release of the minutes and gained about 80 points on Wednesday at the yen’s expense.

Gold prices are lower on Wednesday, as the metal has slipped to two-month lows. The spot price stands at $1281.34 per ounce in the European session. On the release front, it’s a busy day in the US, led by two key events Unemployment Claims and the Philly Fed Manufacturing Index. On Wednesday, the Federal Reserve released its minutes, and the hawkish tone gave a boost to the US dollar and pushed gold prices lower.

Wednesday, August 20, 2014

Gold and French Preliminary GDP

Gold is stable in Wednesday trading, as the metal continues to stay close to the key $1300 level. The spot price stands at $1297.16 per ounce in the European session. It’s a quiet day on the release front, highlighted by the Federal Reserve minutes, which should be treated by traders as a market-mover. Inflation numbers in the US remain at very low levels. On Tuesday, CPI and Core CPI, the primary gauges of consumer inflation, both posted paltry gains of 0.1%. These weak readings come on the heels of PPI, a manufacturing inflation index, which also came in at 0.1% last month. Weak inflation is one reason why the Federal Reserve is in no rush to raise interest rates, as low inflation points to slack in the economy.
Despite broad interest rate cuts by the ECB in June, the Eurozone continues to limp along, including Germany, the region’s locomotive. Inflation and growth levels remain weak, as underscored by last week’s GBP and inflation releases. French Preliminary GDP remained flat at 0.0%, unchanged from a month earlier. German Preliminary GDP slipped to -0.2%, the first contraction in the German economy since Q4 of 2012. Eurozone Flash GDP also weakened to -0.2%, down from 0.0% in the previous release. All three GDP releases missed their estimates, and the weak numbers could push the euro even lower. On the inflation front, the news is not good, as deflation is a growing concern. Last week, Eurozone Final CPI dipped to 0.4%, down from 0.5% a month earlier. As well, German and French inflation numbers remained weak.

Tuesday, August 19, 2014

Price and Profits in Trading

No matter what you trade stocks, Forex, Futures price movement is called a trend you have up trends and down trends.  As traders we identify the trend as the main direction of price movement.  The faster movements in the same direction of the trend are called the impulses.  The opposite movements against the trend are corrections it just depends on the buyers and sellers.  Most traders trade in the direction of the trend and attempt to enter into the impulses or at support areas.  The hardest part is realizing that how and why prices turn and move in markets has never changed, no matter how far technology advances it can change with news and volume. Faster and better number crunching will never be more important than knowing where banks and brokers are buying and selling.  Keeping things simple is the single greatest challenge for the average trader since they cannot place such large orders as they can.
Price and Profits