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General analysis about forex market: 28th November – 2nd December

EURUSD technical analysis In the last week, the EURUSD pair has shown nice sign of recovery after hitting the critical support level at 1.05181.This level is going to play a significant role in the next move of the EURUSD pair since the pair has tested this critical support level previously on 3rd December 2015.The daily stochastic is in the extremely oversold region which strongly favors the bullish price action confirmation signal on the daily chart. On the contrary, a doji if formed on the weekly chart which indicates the market is still in indecision and yet not ready to move up. The weekly RSI also suggest that the fall of the EURUSD pair has not yet been completed yet as the RSI is not in the oversold region. However, if the pair manages to climb up then the first bullish resistance for the EURUSD pair would the critical resistance level at 1.08484.A clear break of that level will bring fresh buying pressure in the market. There are two important economic events in the upcoming week. On Monday ECB President Mario Draghi is going to deliver his speech at the press conference. If he comes out with a solid plan to recover the current loss of their economy then the EURO might get fresh buying pressure in the market. On the contrary, the Non-firm payroll data is also going to affect the market to a great extent. A positive data will wash away all the bullish momentum of the EURUSD pair…

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Oil is still trading significantly higher prior to the OPEC meeting

The price of oil is rallying high for three consecutive weak even though the green bucks have exhibited its strength in the currency market. The leading oil manufacturing companies have been rigging the oil hard in the last couple of month causing instability in the oil price. In the eyes of trained investors the OPEC might cut the output rate of oil production at their next meeting which might bring some stability in the oil price. The price of Brent crude oil rose significantly which caused $47.82 per barrel. The rise in price was near about 96 percent which is the highest since 1st November 2016.Along with the sharp rise in Brent Crude oil, the price of U.S West Texas Intermediate (WTI) futures also rose by 87 cents resulting $ 46.56 per barrel. According to Putin oil is trading 1% per higher on the day and he also stated that such an imminent rise in the oil price despite of the massive oil production is going to affect the market in the longer term. Most importantly there has been a contradiction among the OPEC leading member whether to cut the production rate in this year also caused fear into the mind of investors since if things goes like this for a prolonged period of time then the normal trading condition will be hampered to a great extent. Leading hedge firm manager and investors believes that the OPEC needs to come up with a solid plan to cap the oil production…

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Gold and copper market is most likely to remain extremely sensitive along with major currency pairs in the upcoming weeks.

The recent presidential election has created massive chaos in the financial market in the last week and investors are overly cautious since Donald Trump has taken the responsibility for the U.S government defeating Mrs. Clinton. There was supposed to be a strong bearish sentiment in the market since Mr. Trump is mostly against international trade and his anti-social policies also directly affects the growth of green bucks. However, the green bucks gained immense strength on the newly elected president which was totally an unexpected event in the financial world. On last Friday the gold price slipped lower to five months low indicating that trump is not significantly bad for U.S economy. According to New York Mercantile Exchange, the price of gold settled down to 3.10% at $1227.15 per ounce. This is considered to be the lowest settlement in the gold price since 6th march 2016.The increased fiscal spending and tax cuts under the supervision of Mr. Trump boosted the market sentiment to a great extent indicating a strong possibility of economic growth and the well-balanced inflation rate in the near term future. The ongoing interest rate hike decision by the FED also created immense pressure in the financial industry which ultimately drove down the price of gold since the FED is most likely to hike their interest rate in the month of December. Previously the proximity of rate hike by the FED in the month of December was only 67.3% which has now increased over 80% focusing the recent presidential…

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Technical analysis for EURUSD: 7th November – 11th November

The EURUSD pair has corrected to a great extent over the last week after the breakout of the triangle chart pattern. The pair sharply fell after breaching the triangle support zone at 1.10898 level and eventually started its correction in the last week after the hitting critical support level at 1.08526.Investors are overly cautious about the next move of the pair since the presidential election is on 8th November. Though there are very few significant major economic news releases but conservative investors will be staying on the sideline unless the market gives extremely clear and reliable trading signal. The ongoing issue of interest rate hike decision by the FED has also added some sort of uncertainty about the current strength of the U.S dollar. Though there is 67.3% of interest rate hike in the month of December but traders were not given any clear clue by the FED in the last FOMC meeting minutes. Though the U.S dollar has shown some significant amount of strength in last few weeks but the recent strong correction of the EURUSD pair has created a little bit of confusion into the mind of sellers. But the pair needs to overcome significant resistance level before the buyers fully establish their power in the market daily closing above the critical resistance level at 1.11809 level is required in order to see some fresh buying pressure in the market. The market will remain strongly bearish until the critical resistance level at 1.11809 is breached on a daily…

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Trading idea on major pairs: 24th October -28th October

EURUSD pair The medium-term uptrend in the EURUSD pair has come to an end and last week the price broke the key support level at 1.09553.There has been a massive confusion into the mind of investors about the next move of the EURUSD pair but traders are somewhat relaxed since the pair has broken significant support level and the U.S dollar has gained some strength in the market over the past week. The first key support for this pair lies at 1.08206 level where the pair might find some support for a minor bullish retracement. In the upcoming week, ECB President Mario Draghi is going to deliver his speech about the current performance of the European economy. Though the pair is strongly bearish technically but the professional traders are overly cautious about upcoming ECB press conference. If the pair manages to breach the critical support level at .107110 then we will see a strong drop in the EURUSD price towards the next critical support level at 1.05218.Traders are expecting a significant amount of support from that level since the price has respected that area many times in the past. A clear decisive break below the 1.05218 level will bring strong bearish momentum in the market towards the next critical support level at 1.03730.Shorting this pair at the current level will be an immature act since the price is trading too close to the support level and the FED has not given any clear indication about the interest rate hike. In…

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Strong rally in the oil future price: Investors are overly cautious about the fifth consecutive weekly gain in price

There has been a steady rise in the oil price and the market traded fairly higher on Friday securing a fifth consecutive gain in the live market. The current rise in the crude oil price with decent volatility has eased the producer to a certain extent. Crude CLZ6.+0.73% added more than 22 cents or 0.14% to settle the price of each barrel at $ 50.85 in the new York mercantile Exchange. According to the FactSet, the most active contracts also gained about 1% in the last week. the price of Brent crude ended with 0.3% loss in the last week but Brent crude LCOZ6 added more than 40 cents which lead the barrel price to $51.78 which are equivalent a rise of 0.8%.The price of crude oil found a decent support after the Russian energy minister Alexander Novak coordinated the major oil producer to stem the two-year slide in oil price. Novak is also going to travel to Saudi Arabia to further intensify the growth oil industry so that the consumers find a solid stability in the price of crude oil. The head of state of the owned oil company Rosneft said that he is not ready yet to limit the production of the oil yet. Moreover, he has raised the capacity to 200 million metric tons a year or 4 million barrels per day which are an astounding increase in the production oil in the recent days. The average oil production by the Russian economy has exceeded 11.2 million…

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