Tuesday, 7 March 2017
Trading signals
Labels:
trading signals
The probability of March rate hike is close to 100%, equity markets and the FOREX move to consolidation, the market focus is towards Friday Non-Farm and Fed meeting on March 15.
Brent Oil
The overall picture on the Brent crude oil market remains the same. The latest data from the US Department of Energy (Wednesday March 1) showed an increase in crude oil reserves to 1.5 million barrels. Friday's data (3 march) on the number of drilling rigs showed the growth of active drilling rigs in the US by seven units to 609, according to Baker Hughes Inc. The US Administration of Energy Information predicts that the country's oil production will average 9 million barrels per day in 2017. The last significant growth factor (OPEC's coordinated efforts to cut production) is fully priced in the current market levels. The recent correction of the US currency somewhat supported the oil market. However, the expectations remain the same- trading within medium-term range ($54.40-$57.20). We keep our expectations for the medium-range range trading.
Trading recommendations: Trade inside the medium-term channel.
Gold
Our forecast for the gold market decline was justified. However, the drop was stronger - the market declined to $1222- $1225 before it could find any support. (We expected the development of a corrective movement and a pullback to the area of $1,230- $1,235). The nearest significant support is located in the region of $1220. Nevertheless, the medium-term upward trend in the gold market is under threat amid expectation of March rate-hike. We expect sideway trading in the range of $1220- $1245. Longs at $1220 look risky, but can be profitable - the market is already heavily resold. Nevertheless, for the gold market, the meetings of the Fed will be decisive.
Trading recommendations: Outside the market.
USD/JPY
In the USD/JPY market, the expected pullback and profit-taking came true at JPY114.70-JPY114.60. The pair corrected and found relative support in the area of JPY113.70. Our forecast remains in game. We recommend considering USD longs against the yen.
Trading recommendations: Longs at JPY113.60-JPY113.70.
EUR/USD
Our recommendations for cautious longs at Eur1.0520-Eur1.0500 turned out to be correct. The pair has gained into the area of Eur1.0620. However, the market consolidates in anticipation of the Friday Non-Farm and the FED meeting next week.
Trading recommendations: Out of the market.
Fort Financial Services
This trading analysis is for informational purposes only and is not intended to be a strict recommendation for action or an offer for the purchase or sale of any currency, future or stock. Publishing the information we do not try or to attract any funds or deposits. We share our analytical view of current market situation and we don’t have any open position in instruments discussed and no plans to open any positions. Any person considering this research should carefully consider the risks associated with this and the level of trading experience.
The overall picture on the Brent crude oil market remains the same. The latest data from the US Department of Energy (Wednesday March 1) showed an increase in crude oil reserves to 1.5 million barrels. Friday's data (3 march) on the number of drilling rigs showed the growth of active drilling rigs in the US by seven units to 609, according to Baker Hughes Inc. The US Administration of Energy Information predicts that the country's oil production will average 9 million barrels per day in 2017. The last significant growth factor (OPEC's coordinated efforts to cut production) is fully priced in the current market levels. The recent correction of the US currency somewhat supported the oil market. However, the expectations remain the same- trading within medium-term range ($54.40-$57.20). We keep our expectations for the medium-range range trading.
Trading recommendations: Trade inside the medium-term channel.
Gold
Our forecast for the gold market decline was justified. However, the drop was stronger - the market declined to $1222- $1225 before it could find any support. (We expected the development of a corrective movement and a pullback to the area of $1,230- $1,235). The nearest significant support is located in the region of $1220. Nevertheless, the medium-term upward trend in the gold market is under threat amid expectation of March rate-hike. We expect sideway trading in the range of $1220- $1245. Longs at $1220 look risky, but can be profitable - the market is already heavily resold. Nevertheless, for the gold market, the meetings of the Fed will be decisive.
Trading recommendations: Outside the market.
USD/JPY
In the USD/JPY market, the expected pullback and profit-taking came true at JPY114.70-JPY114.60. The pair corrected and found relative support in the area of JPY113.70. Our forecast remains in game. We recommend considering USD longs against the yen.
Trading recommendations: Longs at JPY113.60-JPY113.70.
EUR/USD
Our recommendations for cautious longs at Eur1.0520-Eur1.0500 turned out to be correct. The pair has gained into the area of Eur1.0620. However, the market consolidates in anticipation of the Friday Non-Farm and the FED meeting next week.
Trading recommendations: Out of the market.
Fort Financial Services
This trading analysis is for informational purposes only and is not intended to be a strict recommendation for action or an offer for the purchase or sale of any currency, future or stock. Publishing the information we do not try or to attract any funds or deposits. We share our analytical view of current market situation and we don’t have any open position in instruments discussed and no plans to open any positions. Any person considering this research should carefully consider the risks associated with this and the level of trading experience.
Subscribe to:
Post Comments
(
Atom
)
No comments :
Post a Comment