Analysis for August 22nd, 2014
EURUSD, “Euro vs US Dollar”
Despite the fact that Euro rebounded from the 1/8 level and started a new correction, the main trend remains bearish. Considering that the market is moving between Super Trends, the risks are rising, that’s why I decided to decrease the total volume of my position and recorded the profit for my very first sell orders. If later bears are able to regain the initiative and keep the price below the H1 Super Trend, I’ll increase my short position.
As we can see at the H1 chart, the current correction started after rebounding from the 2/8 level, which means that the market may start a new descending movement, although reverses hardly ever occur here. If later bears are able to keep the price below the 3/8 level, the pair may start falling towards the 0/8 one.
XAGUSD, “Silver vs US Dollar”
Silver is still supported by H4 Super Trend. If bears are able to rebound from it again this time, the price may reach the 0/8 level and then start a new and deeper correction.
As we can see at the H1 chart, the market got very close to the 4/8 level and now the future scenario depends on how it will move near this level. Taking into account that Super Trends are still influenced by “bearish cross”, the current downtrend is expected to continue. But if the market breaks the 5/8 level, it will be a disastrous for sellers – in this case the price is very unlikely to reach the 0/8 one.
Before you enter foreign exchange and stock markets, you have to remember that trading currencies and other investment products is trading in nature and always involves a considerable risk. As a result of various financial fluctuations, you may not only significantly increase your capital, but also lose it completely. Therefore, our clients have to assure RoboForex that they understand all the possible consequences of such risks, they know all the specifics, rules and regulations governing the use of investment products, including corporate events, resulting in the change of underlying assets. Client understands that there are special risks and features that affect prices, exchange rates and investment products.
Recommended Content
Editors’ Picks
EUR/USD stays near 1.0800 after upbeat US data
EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.