Stocks Finish Lower; Markets May Settle Ahead of Jobs Data
stock markets finished sharply lower in expanded range trading. Traders were
reducing risks because of a multitude of factors including Euro Zone debt
issues, financial market regulation, the threat of international terrorism and
possible criminal action against Goldman Sachs. Despite Tuesdayâ€™s volatility,
market conditions could begin to calm ahead of this Fridayâ€™s U.S. Non-Farm
Tuesdayâ€™s action in the June E-mini S&P 500 reaffirmed
the main down trend while also confirming the weekly closing price reversal
top. This pattern usually suggests the start of a 2 to 3 week correction.
Downside momentum could take this market back to 1134.00 over the near-term.
June Treasury Bonds soared in a flight to safety rally.
Money left the stock market and traders dumped higher risk assets such as gold
and crude oil. This encouraged traders to seek safety in the lower risk, lower
yielding T-Bond. Traders are also taking protection against the possibility that
sovereign debt issues in the Euro Zone could surge to global proportions.
June Gold finished lower after an initial surge to the
upside. At first speculators were buying gold as they hedged against a possible
collapse in the Euro. Traders took profits as the market neared $1200 and the
U.S. Dollar soared. Technically, the closing price reversal top indicates more
downside action is likely. This type of trading pattern suggests that a break
to $1158.60 is likely over the near-term.
A drop in demand for higher risk assets and the possibility
that a slowdown in the Euro Zone would lead to lower demand for energy helped to
drive June Crude Oil lower. The 4.78% drop in price is a sign that this break
was triggered by more than profit-taking. The bigger picture suggests that a
correction to 79.17 to 77.18 is likely over the near-term. Losses could be
limited by the lingering problems in the Gulf with the oil spill.
The Dollar Index continued to soar on Tuesday as it touched
its highest level since May 2009. After spending April trading on both sides of
a monthly 50% level, the Index is now in a position to test the .618 price.
Based on the major monthly range of 89.62 to 74.17, traders should look for the
market to test 83.72 over the near-term. This market should continue to remain
strong as long at 81.90 holds as support.
The drop in gold, crude and equities helped to trigger a
break in the June Canadian Dollar. After building a distributive top throughout
April, this contract finally crossed a swing bottom at .9789 to turn the main
trend to down on the daily chart. Downside momentum indicates that .9705 is the
next downside objective followed by .9649. The weakening Canadian Dollar is
most likely pleasing to the Bank of Canada which hinted last week that a strong
currency is likely to have an impact on inflation and monetary policy. This led
this analyst to believe that the BoC was intervening to weaken the Loonie. Look
for the USD CAD to continue to strengthen unless there is renewed demand for
higher risk assets.
The June Euro traded sharply lower on Tuesday, reaching a
12-month low at 1.2993. Although a bailout agreement was reached by the Greek
government, the European Central Bank and the International Monetary Fund over
the week-end, bearish traders have shifted their focus to the growing fiscal
problems in Spain and Portugal.
Hedge fund and large traders continue to press the short-side, but the
technical bounce after briefly breaking the psychological level at 1.30 may be
an indication that this currency is ripe for a short-covering rally.
The sharp break in the June British Pound is an indication
that concerns are building that the U.K.
economy could face similar fiscal problems as Greece. The main concern among
investors at this time is the May 6th election. In my opinion, the election
outcome is expected to yield two results and both of them are bearish to the Sterling.
Firstly, recent polls suggest that the election is too close
to call. This means that a hung parliament is likely. A hung parliament results
when there is no clear majority winner following the election. If no majority
is in control of the parliament then it is highly unlikely that moves will be
made to shore up the U.K.
economy and budget deficit problem. If this occurs, then the British Pound is
likely to weaken because of the threat of a possible credit rating downgrade
and the possibility of sovereign debt default.
Secondly, even if a majority party is elected to parliament
and moves are made to try to fix the economy, the first move is likely to be
massive budget slashing. The Pound is likely to break further if the U.K. is forced to make austere financial cuts
just like Greece.
Mistimed budget cuts when the economy is in need of stimulus could set the U.K.
economy into a double-dip recession.
The weak Euro sent the June Swiss Franc sharply lower.
Traders expect the Swiss National Bank to intervene to defend its currency.
Based the 12-month range of .8222 to 1.0099, the market is now trading inside
the retracement zone of this range at .9161 to ..8939. Look for this contract
to continue to weaken as long as the high end of the range holds with the lower
end the next objective. The severely oversold Euro may trigger a short-covering
rally in the Swiss Franc. Aggressive traders have to be careful about chasing
this market higher.
Forex Trading News
Daily Forex Market News Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Forex News Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
Actionable trading levels delivered to YOUR charts in real-time.
Mon 19 Mar 2018 Tue 20 Mar 2018 AA 9:30 GB- CPI A 10:00 DE- ZEW Survey Wed 21 Mar 2018 AA 03:00 AU- Employment AA 9:30 GB- Employment A 12:30 US- Current Account AA 14:00 US- Existing Homes Sales A 14:30 US- EIA Crude A A18:00 US- Fed Rate Decision A 21:00 NZ- RBNZ Rate Decision Thu 22 Mar 2018 AA All Day flash PMIs AA 9:30 GB- Retail Sales AA 12:00 GB- Bank Of England Decision A 13:30 US- Weekly Jobless Fri 23 Mar 2018 AA 12:30 CA- CPI/Retail Sales A 12:30 US- Durable Goods A 14:00 US- New Homes Sales
John M. Bland, MBA co-founding Partner, Global-View.com
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.