Texas Trade Report Daily Report For 20 December 2013

Good Morning, Good Afternoon or Good Evening where ever you are in the world. This is Texas Trade Report for 20 December 2013. I am Liz S, your currency analyst for this daily edition.  I will be talking about the GBP/AUD, CAD/JPY, NZD/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.

 

GBP/AUD Daily Chart

Onto the GBP/AUD, this pair had made it as a high to 1.8454 the daily chart. It is currently trading at 1.8383. The Current Account figures  came in at £-20.721B versus £-6.156B from the previous month. This figure is lower than expect and sent the pound downward. The GDP (Year-To-Date) came in 1.9% versus 1.3% from the previous quarter. Most of the data out the UK has been mixed. I do expect this pair to continue downward for the most part. Technically, this pair is still in rising wedge pattern and has been in uptrend for a while. This is technically overbought much like EUR/JPY. This pair has been bullish. I would like to see a re-test around the 1.7471 area to stay in the bullish trend on the daily chart. I am still bullish at this point

CAD/JPY Daily Chart

Onto the CAD/JPY, this pair has been trending slightly up and is currently trading at 97.54. this pair made a high of 97.94. It continues to trend upward for the time being. The data out of Canada has not been too great at this point. The Consumer Price Index Core came in at 1.1% versus 1.2% from the previous month. It is lower than expected. The Bank of Japan kept interest rate the same. There was not a lot of movement in either direction for this pair. I believe it has to hit the 95.82 area of support to stay bullish. It appears bullish right now. At moment, the overall view is bullish right now.

 

NZD/CAD Daily Chart

Onto the NZD/CAD, this pair is trending up. It is currently trading at 0.8753. It made a high of 0.8770. 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 sideways.  The data out of Canada was soft for the most part.  The trade balance data came in at $183M versus the $-173M previous month on yesterday at 1:00 GMT. This has helped the pair stay buoyant. The bottom of this tight range is between 0.8125 and 0.8858 on the daily chart. I remain bullish short term on this pair.

Gold Daily Chart

Onto gold, it was down massively yesterday touching the 1194 area. Higher GDP figures came in for the US and has helped the US Dollar get stronger. The Core Personal Consumption Expenditures (QoQ) (Q3) came in at 1.4% versus 0.6% from the previous month. The Gross Domestic Product Annualized (Q3) came at 4.1%. This has not been very helpful for gold at the moment. It is currently trading at $1197.50. I believe that break above the $1265.95 and stay above it that would be bullish. At this point, my overall viewpoint for the short term is neutral until we can break above the $1265.95 area.

Oil Daily Chart

 

 Onto oil, it is currently trading at $98.75 a barrel. We see evidence that oil is going higher. It looks like the start of a new uptrend for oil at least for the time being. Oil has been trekking upward steadily.  It has to break above $99.77 and has broken previous of resistance. $99.77 is the new area of resistance for the time being. Then, there is overall area around the $104.00 resistance area. I believe that it will break above that area. I am firmly bullish on oil at this point.

 The overall markets are bullish at this point. Risk themes will continue to play out. There will be less liquidity in the markets and retail traders are more willing to take risks during that time. The western world will be celebrating the Christmas holidays, which is why you will see large movements during that time. Because there is less risk and allowing for weird trading conditions to take place. I will put out another report on Sunday. Have great weekend and good luck trading for the rest of today.

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