Ghost of 2015

  • 2016 the year of more Monetary stimulus?
  • Market volatility sets to dominate
  • Geo-Political risks on the rise
  • China leaders need to relax on corruption investigation
  • China showing signs that the Fed need to take heed
  • Central banks will need to do more
  • Currencies devaluation/wars continues
  • Commodities rout could continue as producers struggle
  • Deflation could be more prominent as competition increases

Gold Daily

  • Not a great start to 2016 and technically look weak
  • Price action rejected at 61.8% and megaphone formation still stands
  • Initial support stands at daily 100 ma and 200 ma which confluence with lower trend line of the megaphone

EUR/USD Daily

  • 2016 starts with a spat of risk off environment which could see Euro higher as safe haven demand increases
  • Post December rate hike – contrarian trades could benefit as short covering could spark a short term rally

German Bund Daily

  • Daily RSI is showing divergence while price action continue to linger within a triangle formation
  • Breakout is imminent while we wait for a blow off top to confirm a short trade

AUD/USD Daily

  • Distribution phase as traders look to accumulate and cut weak longs?
  • Resistance noted on the red bar as potential short trades

Gold Daily

  • Found support at 1058 and as long as 1046 is not taken out then there is potential for further short covering
  • Price action is converging in a triangle formation so a breakout is imminent (Non Farm payroll week could trigger this)
  • A close above the daily 20 ma may sustain upside move with target at daily 100 ma and 200 ma
  • We maintain our thesis that weakness is a buy even for a day trade

Silver Daily

  • Another classic setup as the choppy price action dictate the next big move
  • Any weakness may well offer a decent RR for a long

 

 

 

 

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