To say the last few days have been a roller coaster ride for commodities would be an understatement, with both oil and gold providing some sensational trading opportunities, but for very different reasons. For gold, it was the Swiss referendum over the weekend, and for oil, it was the OPEC meeting in Vienna.
As we come to the end of another trading week, for the Australian dollar it has been another characterized by negative sentiment with the AUD/USD likely to close with a wide spread down candle, with the bearish tone picking up momentum once again. The move lower for the pair is of no great surprise given the clear and unequivocal messages that have been emanating recently from the RBA, during the
For the USD/JPY, 2014 could best be described in football terms as a game of two halves, when viewed from almost every perspective, and perhaps the most descriptive timeframe to consider is the weekly chart for the pair. And in considering the chart, it also highlights the broader issue from a trading perspective of the need to have an array of trading strategies to take advantage of the prevailing market
The price action for gold throughout much of November could best be described as chaotic, with volatile days of price action subsequently followed by periods of relative inactivity, only to be replaced with extreme and unpredictable swings intraday. And perhaps the place to start with any analysis for the precious metal is on the weekly chart, for a more considered view of the price action.
For oil traders and speculators hitting the sell button has become almost automatic, as the heavily bearish tone for the commodity shows no signs of abating just yet, with another solid move lower yesterday offering low risk trading opportunities once again.
It was a day of muted trading for oil yesterday, with both the US and Canada observing a public holiday in honor of their war veterans, and as a result the Wednesday oil inventories report is now scheduled for Thursday.
As equity markets continue to climb ever higher and breaking out into new high ground, it is the VIX which is moving at the same speed in the opposite direction, as fear is replaced with complacency with the sun shining again as risk appetite returns to the markets.
With another trading week over, and Non Farm Payroll having come and gone for another month, markets in general are now looking forward, as the minor reversal in the US dollar’s unstoppable progress appears to have simply been a temporary pause and reaction to the worse than expected employment data.
For longer term oil traders it’s been a question of being patient and waiting, as the commodity continued to consolidate in a narrow trading range, following the extended move lower of early October, which saw the price of oil break through the floor of potential resistance in the $88 per barrel region, before moving down to consolidate in the $79 to $83 per barrel region, where it has remained since.
As another trading week and month gets underway, it’s time to take a look at several of the major currency pairs in the futures market ahead of what is likely to be an interesting time.
