Texas Trade Report Daily Report For 19 December 2013

Good Morning, Good Afternoon or Good Evening where ever you are in the world. This is Texas Trade Report for 19 December 2013. I am Liz S, your currency analyst for this daily edition.  I will be talking about the EUR/JPY, NZD/JPY, AUD/CHF 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 142.54 the daily chart. It is currently trading at 142.36. This pair is trading sideways. From yesterday’s price action, we see that it went up over 100 pips from 141.39 and due to the interest rate decision from the Federal Reserve. Also, it is risk on based asset. We have the Bank of Japan interest rate decision on December 20, Friday at 3:00 GMT. I am not expecting a huge reaction like we had yesterday with the Federal Reserve. This pair on the daily chart is still overbought technically. I am neutral until the BOJ’s interest rate decision. This pair still in a rising wedge pattern and remains this way. 

NZD/JPY Daily Chart

Onto the NZD/JPY, this pair is trending up and is in a rising wedge pattern on the daily chart. It is currently trading at 85.00. It made a high of 85.62. We do expect soon a retest around the 84.05 area of support. It has been in the rising wedge pattern and is overbought. I do expect that will have to go lower before continuing higher at this point. Just like the EUR/JPY, I am not expecting a huge reaction from the BOJ’s interest rate decision. This pair seems to want to trade sideways. I remain neutural on this for the time being.

AUD/CHF Daily Chart

Onto the AUD/CHF, this pair has been trending down and is currently trading at 0.7827 on the daily chart. It has made a daily high of 0.7948. There is a lot pressure on the Aussie. Much of the reason for its trending down is a shift from the Aussie to Euro, the Pound and the Dollar and bad economic data on top of it. The downward pressure will continue for a little while longer. If this pair can break above the 0.8125 level of resistance and stay above it, we will become bullish at this point. I am going wait and see if it continues to trend down and find a bottom. This pair has to find a bottom because of it being very oversold technically. I remain neutral until we see bit more green before any buying at this point.  

Gold Daily Chart

Onto gold, it is trending down. It made at low at $1194.00 a daily chart and is down about $41.00.Gold is starting to look oversold at this point. It looks like it will continue lower at this point. It will find a bottom. It is still too early to say when at this point.  I believe it will find one. The taper prospect will happen more slowly. The Federal Reserve says that the taper will not be immediate. Short term selling will continue for now.

Oil Daily Chart

There were some technical difficulties trying to get the technical and interactive charts to work right today. My web browser is not working right. Sorry, for the difficulties on those two charts. Anyway, the US data is too weak for the Federal Reserve’s liking. They will continue the bond purchases for a little while longer. Risk trends will continue until the end of this year. I am not expecting any kind of risk aversion at this point. I believe the markets will finish higher overall. The overall theme will change as we head in the first quarter of 2014. I do expect to see a bit more volatility as we head in that direction. Take care and good luck trading today.  I will put out a daily report tomorrow. We will see what happens in the markets tomorrow.

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