Mind Game – Inter Market Analysis

Dollar Index

Daily

4 hour

Previous resistance continue to act as a strong support on the dollar index and this plays out nicely for the bulls to maintain their position. Post Paris attack, there was some safe haven buying for the dollar but market has redeem back its normal momentum. Unless dollar index break below the support level, price action will continue to consolidate until the next catalyst.

German Bund

Daily

4 hour

Impressive recovery as usual on the German bund after it hit the rising trendline. We maintain our view that the bunds are close to exhaustion point and looking for a small short at 157.80 levels – all depending on how the daily candle play out.

Euro

Daily

4 hour

Lower time frame shows divergence but the daily chart maintain its bearish course – the lack of bounce is a clear statement that bears are in full control and latest CFTC report also confirmed that Hedge Funds increased their short bets. Talk of parity remain to be the direction of play here. There are some support but more often they are easily breach.

Dax

Daily

4 hour

The recovery in Dax is simply amazing as we highlighted in our twitter feed. It took the whole of last week for price to claw back from 11050 to 10650 while yesterday rally managed 10480 turn around to 10900 in less than 48 hours – showing the world that buying the dip mentality is here to stay. It does makes one wonder if last week selling at US open was in anticipation of a big sell off.

Gold

Daily

4 hour

Commodities sell off continue with copper weakness and global demand does not seems to support higher prices. Money flowing out of commodities is hitting both gold and silver hard. Despite a lower copper prices that suggest economic outlook may not look so bright – equity market has continued to enjoy higher prices – possibly due to TINA (there is no alternative)

Silver

Daily

4 hour

Is silver going through a bottoming phase? The selling has been relentless and seasonality calls upon such flush. We will be looking for a small long with tight stops to test the market.

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