Now that gold broke below its support level, another sharp decline – including what I call a “waterfall-style decline” – is looking increasingly likely. I suspect that another wave of selling may commence when the Asian precious metals trading session starts in a few hours from now (it’s Thursday afternoon in New York as I write this). If I was planning to short gold, I would make sure that I have a stop-loss order in place to exit the trade.
The British economy
expanded 0.8 percent quarter-on-quarter in the third quarter, unrevised
from the second estimate published on November 27, the Office for
National Statistics said in the latest estimates released on Friday.
However,
the statistical agency slightly revised up the GDP figure for the
second quarter to show a 0.8 percent expansion compared with the
previously reported 0.7 percent growth.
The GDP expanded 1.9
percent year-on-year in the third quarter, the ONS said. This was up
from 1.5 percent growth reported in the second estimate.
Gold broke and closed below the key 1219 level on Thursday. This move
eliminated the positive cyclicality from December 2nd. Given the rather
tepid advance off that low we suspected the key pivot would get tested.
Focus is now on the year’s low at 1180 ahead of major support near 1155.
As for cycles, there is little in the way of turn windows until the end
of the month when a Gann 90-day “death cycle” will open the door to a
potential reversal. Only a move through the 2x1 Gann angle line of the
August high at 1253 would signal the metal has bottomed earlier than
expected.
Bonds in 2013 finally got their comeuppance. After a long, pleasing ride
of income + price gains, the bond market decided the party was over. It
only took four months for the 10-year U.S. Treasury note to drop the
equivalent of over five years? interest. All but the shortest maturities
suffered similar fates.
1. The bond market is the premiere measure of what’s to come
2. The Fed’s effect on longer yields is over and done
3. Economic measures across the board are strong and trending upwards
4. Bondholders now have added protection as a result of the Great Recession and financial stress
5. The steeper yield curve provides added return potential and safety
Bonds in 2013 finally got their comeuppance. After a long, pleasing ride of income + price gains, the bond market decided the party was over. It only took four months for the 10-year U.S. Treasury note to drop the equivalent of over five years’ interest. All but the shortest maturities [...]
USDJPY Weekly Technical Analysis(based on dailyfx article)
USDJPY has broken higher from a 6 month triangle. The triangle from the
May top probably composes a 4th wave with the current rally composing a
5th wave (Elliott). The implications are that another
correction/decline takes hold after wave 5 is complete.
Based on common wave relationships, an objective for wave 5 is 61.8%
of waves 1 through 3 at 111.19. This is near the August 2008 high of
110.65. A 100% extension of wave 4 yields 113.68. An extended wave 5
(blowoff) could see the 100% extension of waves 1 through 3 at 121.95
(not far from the 2007 high at 124.13). In other words, there is plenty
of upside.
Trading Strategy: I am long with a 102.60 stop. A level that may
induce a pullback (or failure) is the uncovered close from October 2008
at 105.30. Know that there are long term trendlines in play over the
next few months as well
This is the final FXTW of the year. Today’s publication will focus on longer term ideas (rather than just the week ahead). The DailyFX 2014 Trade Ideas will be out soon and some of the charts and commentary will appear in that publication. -Maybe EURNZD (NZD in general, see next chart) is a year behind EURAUD. A possible head and shoulders...
Gold was off sharply on the week with the precious
metal plummeting more than 2.8% to trade at $1203 ahead of the New York
close on Friday. Despite the magnitude of the weekly loss, bullion is
set to close well off the lows of the week at 1187. Regardless, the
metal is now set to post its first yearly decline in thirteen years and
its largest yearly decline in 32 years. As the Fed begins to throttle
down from its ultra-accommodative monetary policy stance, the outlook
remains heavy heading into 2014.
Markets in Japan will remain closed in observance of the Emperor's Birthday.
The
U.S. is to produce government data on personal spending and
expenditure, while the University of Michigan is to release revised data
on consumer sentiment and inflation expectations.
Meanwhile,
Canada is to release monthly data on gross domestic product, the
broadest indicator of economic activity and the leading measure of the
economy’s health.
Tuesday, December 24
Markets in Germany will remain closed in observance of Christmas Eve, while France is to release data on consumer spending.
The U.S. is to release data on durable goods orders, a leading indicator of production, as well as a report on new home sales.
Wednesday, December 25
Markets
in Australia, New Zealand, Europe, the U.K., Switzerland, Canada and
the U.S. will remain closed for the Christmas Day holiday. Thursday, December 26
Markets in Australia, New Zealand, Europe, the U.K. and Canada will remain closed in observance of Boxing Day.
Meanwhile,
the Bank of Japan is to publish the minutes of its latest policy
meeting, which contain valuable insights into economic conditions from
the bank’s perspective.
Later in the day, the Labor Department is to release the weekly report on initial jobless claims.
Friday, December 27
Japan
is to release a series of data, including reports on household
spending, inflation, retail sales and industrial production.
Meanwhile, the U.S. is to round up the week with a report on crude oil supplies.
Investing.com - The U.S. dollar ended the week higher against most of its major counterparts, as demand for the greenback remained supported after the Federal Reserve announced plans to begin tapering its monthly bond-buying program. The Fed announced Wednesday that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in...
The U.S. is to produce government data
on personal spending and expenditure, while the University of Michigan
is to release revised data on consumer sentiment and inflation
expectations.
Tuesday, December 24
The U.S. is to release data on durable goods orders, a leading indicator of production, as well as a report on new home sales.
Wednesday, December 25
Markets in Australia and the U.S. will remain closed for the Christmas Day holiday. Thursday, December 26
Markets in Australia will remain closed in observance of Boxing Day.
Meanwhile, the U.S. is to release weekly data on initial jobless claims.
Friday, December 27
The U.S. is to round up the week with a report on crude oil supplies.
Investing.com - The Australian dollar inched higher against its U.S. counterpart on Friday, but the Aussie held near a three-and-a-half year low after the Federal Reserve said it will begin scaling back its stimulus program next month. AUD/USD clawed back from 0.8818 on Wednesday, the pair’s lowest since August 25, 2010, to subsequently...
Markets in Japan will remain closed in observance of the Emperor's Birthday.
The
U.S. is to produce government data on personal spending and
expenditure, while the University of Michigan is to release revised data
on consumer sentiment and inflation expectations.
Tuesday, December 24
The U.S. is to release data on durable goods orders, a leading indicator of production, as well as a report on new home sales.
Wednesday, December 25
BoJ
Governor Haruhiko Kuroda is due to speak at the Japan Business
Federation, in Tokyo. His comments will be closely scrutinized for clues
regarding future monetary policy.
Markets in the U.S. will remain closed for the Christmas Day holiday.
Thursday, December 26
The
Bank of Japan is to publish the minutes of its latest policy meeting,
which contain valuable insights into economic conditions from the bank’s
perspective.
Later in the day, the Labor Department is to release the weekly report on initial jobless claims.
Friday, December 27
Japan
is to release a series of data, including reports on household
spending, inflation, retail sales and industrial production.
Meanwhile, the U.S. is to round up the week with a report on crude oil supplies.
Investing.com - The dollar rose to the highest level since October 2008 against the yen on Friday, before turning modestly lower as investors locked in gains from the Federal Reserve's decision to begin tapering its monthly bond-buying program. USD/JPY rose to 104.64, the highest level since October 6, 2008, before pulling back to 103.19...
Gold just broke below an important technical level that may indicate another steep drop ahead.
2013-12-20 09:30 GMT (or 10:30 MQ MT5 time) | [GBP - GDP]
if actual > forecast = good for currency (for GBP in our case)
==========
UK Q3 GDP Expands 0.8% As Estimated
The British economy expanded 0.8 percent quarter-on-quarter in the third quarter, unrevised from the second estimate published on November 27, the Office for National Statistics said in the latest estimates released on Friday.
However, the statistical agency slightly revised up the GDP figure for the second quarter to show a 0.8 percent expansion compared with the previously reported 0.7 percent growth.
The GDP expanded 1.9 percent year-on-year in the third quarter, the ONS said. This was up from 1.5 percent growth reported in the second estimate.
Gold broke and closed below the key 1219 level on Thursday. This move eliminated the positive cyclicality from December 2nd. Given the rather tepid advance off that low we suspected the key pivot would get tested. Focus is now on the year’s low at 1180 ahead of major support near 1155. As for cycles, there is little in the way of turn windows until the end of the month when a Gann 90-day “death cycle” will open the door to a potential reversal. Only a move through the 2x1 Gann angle line of the August high at 1253 would signal the metal has bottomed earlier than expected.
1. The bond market is the premiere measure of what’s to come
2. The Fed’s effect on longer yields is over and done
3. Economic measures across the board are strong and trending upwards
4. Bondholders now have added protection as a result of the Great Recession and financial stress
5. The steeper yield curve provides added return potential and safety
USDJPY Weekly Technical Analysis (based on dailyfx article)
USDJPY has broken higher from a 6 month triangle. The triangle from the May top probably composes a 4th wave with the current rally composing a 5th wave (Elliott). The implications are that another correction/decline takes hold after wave 5 is complete.
Based on common wave relationships, an objective for wave 5 is 61.8% of waves 1 through 3 at 111.19. This is near the August 2008 high of 110.65. A 100% extension of wave 4 yields 113.68. An extended wave 5 (blowoff) could see the 100% extension of waves 1 through 3 at 121.95 (not far from the 2007 high at 124.13). In other words, there is plenty of upside.
Trading Strategy: I am long with a 102.60 stop. A level that may induce a pullback (or failure) is the uncovered close from October 2008 at 105.30. Know that there are long term trendlines in play over the next few months as well
Technical analysis for GOLD :
Gold Sheds Nearly 3% on Fed Taper- Bearish Tone Set for 2014 Open
========
Gold was off sharply on the week with the precious metal plummeting more than 2.8% to trade at $1203 ahead of the New York close on Friday. Despite the magnitude of the weekly loss, bullion is set to close well off the lows of the week at 1187. Regardless, the metal is now set to post its first yearly decline in thirteen years and its largest yearly decline in 32 years. As the Fed begins to throttle down from its ultra-accommodative monetary policy stance, the outlook remains heavy heading into 2014.
Forex - Weekly outlook: December 23 - 27
Monday, December 23
Markets in Japan will remain closed in observance of the Emperor's Birthday.
The U.S. is to produce government data on personal spending and expenditure, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations.
Meanwhile, Canada is to release monthly data on gross domestic product, the broadest indicator of economic activity and the leading measure of the economy’s health.
Tuesday, December 24
Markets in Germany will remain closed in observance of Christmas Eve, while France is to release data on consumer spending.
The U.S. is to release data on durable goods orders, a leading indicator of production, as well as a report on new home sales.
Wednesday, December 25
Markets in Australia, New Zealand, Europe, the U.K., Switzerland, Canada and the U.S. will remain closed for the Christmas Day holiday.
Thursday, December 26
Markets in Australia, New Zealand, Europe, the U.K. and Canada will remain closed in observance of Boxing Day.
Meanwhile, the Bank of Japan is to publish the minutes of its latest policy meeting, which contain valuable insights into economic conditions from the bank’s perspective.
Later in the day, the Labor Department is to release the weekly report on initial jobless claims.
Friday, December 27
Japan is to release a series of data, including reports on household spending, inflation, retail sales and industrial production.
Meanwhile, the U.S. is to round up the week with a report on crude oil supplies.
AUDUSD fundamentals: December 23 - 27
Monday, December 23
The U.S. is to produce government data on personal spending and expenditure, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations.
Tuesday, December 24
The U.S. is to release data on durable goods orders, a leading indicator of production, as well as a report on new home sales.
Wednesday, December 25
Markets in Australia and the U.S. will remain closed for the Christmas Day holiday.
Thursday, December 26
Markets in Australia will remain closed in observance of Boxing Day.
Meanwhile, the U.S. is to release weekly data on initial jobless claims.
Friday, December 27
The U.S. is to round up the week with a report on crude oil supplies.
USDJPY fundamentals: December 23 - 27
Monday, December 23
Markets in Japan will remain closed in observance of the Emperor's Birthday.
The U.S. is to produce government data on personal spending and expenditure, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations.
Tuesday, December 24
The U.S. is to release data on durable goods orders, a leading indicator of production, as well as a report on new home sales.
Wednesday, December 25
BoJ Governor Haruhiko Kuroda is due to speak at the Japan Business Federation, in Tokyo. His comments will be closely scrutinized for clues regarding future monetary policy.
Markets in the U.S. will remain closed for the Christmas Day holiday.
Thursday, December 26
The Bank of Japan is to publish the minutes of its latest policy meeting, which contain valuable insights into economic conditions from the bank’s perspective.
Later in the day, the Labor Department is to release the weekly report on initial jobless claims.
Friday, December 27
Japan is to release a series of data, including reports on household spending, inflation, retail sales and industrial production.
Meanwhile, the U.S. is to round up the week with a report on crude oil supplies.