Daily Trading Strategy Report : AUD/USD - Objecgtive Met (154 Pips Profit)
Market Focus Report: Gold hits new record high
Written by ImperialFXonline.com
FRESH RECORD HIGH ABOVE $1226.30
Gold rose over $30 or over 2 percent on Tuesday to a record high of $1234, surpassing the 2009 top of $1226.30 as investors bought the commodity as a safe-haven in light of the latest malaise to hit the markets, namely the eurozone debt contagion which threatens to affect other nations in Europe after hitting the likes of Greece, Portugal and Spain. Other commodities such as silver also rose on similar demand but the focus is on gold and how it has risen over 80 percent from the low of $681.65 seen during the worst of the global economic crisis in October 2008.
PRONE TO PULLBACKS DUE TO OVERBOUGHT OSCILLATORS
The uptrend which commenced in February this year at $1044.20 now looks set to extend further but the pace of the overall rise may be at a slower pace than of the rallies in October 2008-February 2009 and April 2009-November 2009 as on the basis of the Elliot Wave Principle, this upmove may be the final one before a major correction takes place, however, a Fibonacci time projection should show that the ultimate peak for this move may occur around the middle of the year (July 2010). A less-impulsive series of moves up is likely to see the commodity prone to pullbacks on profit taking (to relieve some of the overbought readings on the technical indicators), which then gives trend-followers various opportunities to enter the market to make profits as gold continues to rise.
IMPERIALFXONLINE'S GOLD RECOMMENDATIONS
ImperialFxonline provides trading strategies on spot gold for 2 time-frames (daily and weekly) for readers to follow depending on their appetite for risk and preferred frequency of trading, allowing investors to take advantage of anti-trend moves (corrections) and also rallies to new highs.
Written by ImperialFXonline.com
Sterling falls on bearish comments from BoE's King
Daily FX Market Review
Sterling falls on bearish comments from BoE's King
The sterling declined around 0.7 percent against the dollar and euro on Wednesday as comments made by Bank of England Governor Mervyn King following the inflation report were taken as bearish and overshadowed the better-than-expected jobs data, which saw a larger fall in jobless claims than predicted. King said that downside risks to the U.K. economy had increased and that further asset purchases cannot be ruled out. His statements dampened sentiment despite the replacement of the U.K. Prime Minister Gordon Brown by Conservative Party leader David Cameron.
Euro managed to edge out small gains against the yen and greenback as concerns over the euro region sovereign debt crisis waned, with Spain announcing austerity measures to reduce its budget deficit and bond spreads narrowing. Eur/usd bounced from an intra-day low of 1.2605 while the eur/jpy was up almost 0.5 percent and trading near the 118.00 level. The yen was broadly lower on the day as investors' risk appetite increased and pushed equities in Europe and the U.S. up over one percent.
The Australian dollar rallied after the release of employment data which showed that 33,700 jobs were added, which was higher than the consensus forecast. The unemployment rate also ticked higher to 5.4%. Spot gold continued its impressive march to a new record high around $1244 before pulling back on profit taking.
Written by imperialFxonline
Audusd
Where do you think the new S&R levels are for the AUD?
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
Daily Trading Strategy Report: AUD/USD - Ojective Met with 154 Pips Profit
Written by imperialFXonline.com
Objective met: Minor top formation at 0.9078
Time: May 12 2010, 04:56GMT
Rate: 0.8900
Strategy: Target Met
Position: Short at 0.9054
Target: 0.8900
Stop:
The Australian dollar has fallen alongside the other commodity currencies as well as the euro as the increase in risk aversion causes investors to flee to safe-haven vehicles and the retreat from 0.9078 is likely to pressure the aud/usd to 0.8900, however, only a breach of the minor support 0.8803 would remove risk of another bounce inside the near term range of 0.8712-0.9382 and extend losses towards 0.8712 later.
The stop for our short position has been lowered again and only above the minor resistance at 0.9078 would result in a stronger upward retracement of the fall from 0.9382 towards 0.9135 (previous support).
Written by imperialFXonline.com
High Risk Warning: Foreign exchange trading on margin carries a high level of risk that may not be suitable for all investors as the degree of leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, level of experience and risk tolerance. You could sustain a loss of some or all of your initial investment and hence you should not invest money that you cannot afford to lose. Be aware of the risks associated with foreign exchange trading and seek advice from an independent financial or tax advisor if you have any questions. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. Website owners and affiliates will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.