Texas Trade Report Daily Report For 16 December 2013

 

Good Morning, Good Afternoon or Good Evening where ever you are in the world. This is Texas Trade Report for 16 December 2013. I am Liz S, your currency analyst for this daily edition.  I will be talking about the EUR/JPY, NZD/CAD, AUD/CAD currency pairs, gold and oil in this daily report. This is sole focus of this report.  Before I can go any further, here is the risk disclaimer.

Risk Disclaimer:
  Trading Forex is a risky business and sometimes you will lose the money that you traded. You are leveraged 50:1 or even more. There is the risk of loss of the money have invested. Never invest money that you are not committed losing. There is a possibility of losing your original investment. If you are not sure about investing, seek the help of registered investment adviser.

Also, the purpose of this trading lesson is education. This does not constitute trading advice. Nor do I give out trading signals. All opinions are my own and not Blogger.com nor Google.com.

                                                                        EUR/JPY Daily Chart

Onto the EUR/JPY, this pair had made it as a high to 142.0 the daily chart. It is currently trading at 142.84. The Composite PMI came in 52.1. The Composite PMI figure is usually a figure that indicates that Eurozone’s manufacturing sector is growing. It has approach the cyclical high that happen in September. Manufacturers were more optimistic.  This led to the pair going higher. The pair has been trapped a rising wedge for a while. And it is trading sideways at the moment. We do expect that this pair will break down due to it being overbought on the daily chart. If this pair is going to go higher, a retracement is needed. This pair has been in uptrend for a good while. We expect that it could trade sideways for a while until it does breakdown.  We don’t expect it to stay stuck in a sideways pattern if gets to that point. We will stay neutral at this point because the possible sideways action could take place.

                                                                     NZD/CAD Daily Chart

Onto the NZD/CAD, this pair is trending up. It is currently trading at 0.8762. It made a high of 0.8768. We do expect soon a retest around the 0.8571 area of support. It will confirm the bullish trend on the daily chart still holds. The stochastics are indicating that they are going down. This may confirm downward pressure is happening for this pair. It may do so in the short to medium term. Right now, the numbers out of Canada are very soft for the time. This has help to keep the pair trending upward. We may get soft numbers on Friday, December 20 for CPI figures. We will have to wait and see if this can continue to push the pair higher to delays the currency pair from being pushed lower. If we get good numbers that will send the pair a bit lower for the time being.  We remain somewhat bullish for now.

                                                               AUD/CAD Daily Chart

Onto the AUD/CAD, this pair has been trending down and is currently trading at 0.9478. There is a lot pressure on the Aussie and the spotty data from China and the RBA wanting a lower Aussie has not helped the pair to go up. The bottom on the daily chart is at 0.9174. We do expect that this pair will get there given the current situation is in Australia and past economic data. However, we don’t expect this to last permanently   It will continue for short and medium term to trend down. We do expect that will hit bottom and start to trade possibly when it hits the 0.9174 area of support.  The stochastics are indicating the pair is becoming oversold on the daily chart. We will remain neutral because the possible oversold situation unfolding.

                                                                Gold Daily Chart

Onto gold, it is starting break away from the downward pressures. It is starting to perk up a bit. It is currently trading at $1241.10. It will need to break above $1267.24 to become bullish. We are starting to see evidence if that might get there and stay above it. Gold took a tumble during the early part of 2013. The Federal Reserve interest decision meeting will tell the direction of gold and the reaction to their decision. We may get some news on the taper to point out the direction for gold. We remain bullish for gold and looks like might go higher. It has not been doing well this past year. This may change.

                                                               Oil Day Chart

Onto oil, it is currently trading at $97.81 a barrel. It has been in a downward trend for a while. It looks to being heading higher overall. If it can break above $98.81 on the daily and stay above it, we will become bullish. The last couple of days oil has been going up. We can see evidence that it has. We do expect that it will break $98.81 price level and stay above it.

We need to take into consideration the Federal Reserve’s interest rate decision to see if risk trends can prevail or the taper scares the market into submission. Take care and good luck trading this week.  I will put out a daily report tomorrow. We will see what happens in the markets tomorrow.  

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