Frankfurt. 03/12/2015 – Inter Market Analysis

Dollar Index

Daily

4 hour

As long as December rate hike continue to loom in the market, dollar bull will maintain this view. We highlighted yesterday where they might find support and the index bounced – though we are turning our bias for a pullback between now till the end of November.

German Bund

Daily

4 hour

We envisaged a run lower to retest the daily bollinger band before a sharp snap back higher. Resistance stands at the 20 ma and if the EW count is right then a wave 5 is potentially forming.

Euro

Daily

4 hour

Despite many onslaught to break below 1.0650 level, euro sellers remain cautious and unable to find fresh catalyst. Without fresh sellers in the market-consolidation period could potentially be a strong support zone for a possible dead cat bounce. Target for the bounce is to retest the bear flag channel.

Dax

Daily

4 hour

German Dax is in no hurry to retest lower as long as 10680 is kept safe by the bulls. Another layer of support was created this week as the bears tried relentlessly yet fail to take it lower. Mario Draghi’s speech has lifted the Dax higher on many occasions but we continue to argue that a mini pullback will be healthy for the next leg higher.

Gold

Weekly

Daily

Gold remain weak as we head towards a december rate hike by the Federal Reserve. Unless market perception changes, any rallies are selling opportunities and selling can continue to probe for new low.

Silver

Weekly

Daily

Well the weekly silver chart painted a very dire picture for longs since the fundamental picture of holding the white metal is not promising at all. We are not expecting another big boom in Chinese economy though demand for the industrial metal could consolidate in the next few months. Technical view on the daily painted a slim hope of a triple bottom but we remain sceptical as the overall trend is bearish. Rallies remain selling opportunity.

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