Flight to Safety Rally Likely to Pressure U.S. Equities
The flight to safety rally overnight into the U.S. Dollar is
likely to pressure U.S.
equity markets on Tuesday as investors are expected to reduce their exposure to
Selling pressure began overnight in Europe amid speculation
central bank will intervene to limit gains in the Yuan after dropping its
two-year peg to the U.S. Dollar.
In addition to the speculation about China, a new debt problem concern in Europe is also renewing fear that sovereign debt issues
have exposed the banking system to risky investments which may lead to a slow
down in economic growth. Traders are also raising doubts about the recovery
taking hold because of the newly proposed austerity measures in the Euro Zone
and the U.K.
Technically the September E-mini S&P 500 posted a
closing price reversal top on the daily chart on Monday. This bearish pattern
will be confirmed when Mondayâ€™s low at 1103.25 is violated. Once confirmed the
market is set-up for a 2 to 3 day correction to 1083.25 to 1072.50.
A drop in demand for higher risk assets is helping to boost
the September Treasury Bonds. On Monday, T-Bonds recovered from a gap lower
opening to close on its high. This move kept the uptrend intact, triggering the
overnight rally. Regaining a .618 price level at 124â€™08 could trigger stops and
an acceleration to the upside.
August Gold traders look confused. They donâ€™t seem to know
whether to be concerned about renewed debt problems in Europe,
the strengthening Dollar or weaker equity markets. Gold is trading slightly
better this morning after a huge reversal top on Monday. The short-term break
stopped at a 50% price at $1232.30. A failure to hold this price should trigger
a further break to $1224.20. Downside momentum could trigger a change in trend
to the down on a move through $1216.20.
The September Euro retreated overnight following a 10-day
rally amid concern debt trouble at European banks will temper global growth.
Selling pressure hit the Euro after European Central Bank
President Jean-Claude Trichet said nations in breach of European Union fiscal
rules may face tougher punishments and ECB member Christian Noyer said some
banks in the Euro region are facing funding problems.
The Euro topped on Monday after Fitch credit-rating firm
downgraded BNP Paribas. The downgrading of the major bank shifted the focus
back on the European debt crisis and the banking sector. Fitch citied
structural issues related to the bankâ€™s business mix as the main reason behind
the downgrade. Fitch also cited asset-quality deterioration in 2009 for the
Technically, the Euro posted a daily closing price reversal
top on Monday. This pattern was confirmed overnight with a follow-through move
to the downside. Based on the short-term range of 1.1876 to 1.2467, traders
should look for a 2 to 3 day break or a retracement to 1.1884 to 1.2477.
Investors are bailing out of the September British Pound
shortly before the new government unveils its first budget.Chancellor of the Exchequer George Osborne
will present the budget to parliament today as he seeks to prevent the loss of
triple-A rating. The market is looking for the budget to include severe cuts in
spending and possible tax hikes.
This move toward fiscal tightening may lead to a prolonged
period of loose monetary policy which may weigh on the Pound. In other words,
the anticipated moves by the new government may mean the Bank of England may
have to maintain liquidity or risk losing the economy.
Technically, Mondayâ€™s closing price reversal top inside of a
retracement zone at 1.4876 to 1.5028 was confirmed overnight. This bearish
chart pattern suggests a minimum 2 to 3 day break with a minimum downside
target of 1.4643 to 1.4574. More aggressive selling could trigger a retracement
to 1.4583 to 1.4499. The chart pattern also suggests that 1.4583 to 1.4574 is a
support cluster which could attract buyers.
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.
GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium Mon 23 Apr 2018 A All Day- Flash PMIs AA 14:00 US- Existing Homes Sales Tue 24 Apr 2018 AA 01:30 AU- CPI A 08:00 DE- IFO Survey A 14:00 US- CB Confidence A 14:00 US- New Homes Sales Wed 25 Apr 2018 AA 14:30 US- EIA Crude Thu 26 Apr 2018 AA 11:45 EZ- ECB Decision A 12:30 US- Durable Goods A 12:30 US- Weekly Jobless Fri 27 Apr 2018 AA 03:00 JP- Bank of Japan A 08:00 DE- Employment A 08:30 GB- GDP A 14:00 US- University of Michigan
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.