Investing.com – In a tale of two stock markets, the Dow surged to new intraday and closing highs, while the other major indexes struggled.
It has been a very quiet Wednesday session. The Canadian dollar and British pound are flat, and EUR/GBP is also trading sideways. Stronger inflation numbers in the U.S. failed to cause any reaction in the curency markets.
Gold markets rallied a bit during the trading session on Wednesday, bouncing above the top of the hammer from the previous session. Now that the market has bounce from the $1450 level, it shows that perhaps there will be buyers going forward.
The US dollar has initially tried to rally during the trading session on Wednesday but then broke down towards the 200 day EMA. At this point, the market looks very likely to continue to see a lot of choppiness, as we had recently tested a major barrier and failed.
The British pound pulled back slightly during the trading session on Wednesday looking for support underneath. That being the case, it looks as if the market is going to continue to form this larger pattern.
The British pound has pulled back significantly during the trading session on Wednesday, reaching towards the bottom of the overall consolidation area that we have been in.
The Euro initially tried to rally during the trading session on Wednesday, but then turned around to reach towards the 1.10 level underneath. That is a level that of course offers a lot of interest for traders.
The Australian dollar has initially tried to rally during the trading session on Wednesday, but rolled over significantly, reaching towards the 0.68 level. Beyond that, there is also a major technical indicator right there.
Investing.com – For a second day in a row, there’s less-than-comforting news about a U.S.-China trade deal and gold is soaring once again from a push higher by those long the yellow metal and awaiting such somber news.
News does drive certain market events and we understand how certain traders rely on news or interest rates to bias their positions and trades. As technical analysis purists, so to say, we believe the price operates within pure constructs of price rotation theory, trend theory, technical indicator theory, and price cycles. We’ve found that technical analysis distills many news items into pure technical trading signals that we can use to profit from market swings.
Based on the early price action and the current price at 1.1009, the direction of the EUR/USD the rest of the session on Wednesday is likely to be determined by trader reaction to the support cluster at 1.0996 to 1.0994.
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December Comex gold prices are likely to be underpinned on Wednesday by falling Treasury yields and lower demand for risk. Unless there is a breakthrough in U.S.-China trade relations, concerns over the lack of progress toward a deal are likely going to encourage investors to continue to shed risky assets.
Despite the importance of the consumer inflation data and Powell’s testimony, I don’t think USD/JPY will be rattled by anything these events show. Inflation is expected to remain tame, and Powell is usually pretty tight-lipped so he’s not expected to shake up the markets.
EUR/USD dropped to levels not seen since the middle of October but was last seen bouncing higher from the psychological 1.10 level.
Investing.com -- Gold and silver prices rebounded on Wednesday as the negative implications of President Donald Trump’s speech on Tuesday filtered through to markets – albeit with something of a delay.
Investing.com – Wall Street opened lower on Wednesday as a trade deal between the U.S. and China seemed less likely, while trading was subdued as investors awaited testimony from Federal Reserve Chairman Jerome Powell on the central bank’s monetary policy.
It is the New Zealand dollar’s day to shine. The currency is up over 1.0%, after the RBNZ did not cut rates, as expected. The Australian dollar and Chinese yuan are steady.
Our summary of the current situation in the precious metals is not going to differ much from what we wrote yesterday, and the reason is simple.
The RBNZ said that while inflation remained below the 2 percent target mid-point, economic developments since August did not warrant a change to “the already stimulatory monetary setting at this time”.