the daily chartist

Market recap for 23.09.2015

published 6 years ago


 First off we begin with USDX. Price opened at 96.38, made a high at 96.57 and a low at 96.03 and found itself closing at 96.24. The price did moved up to 96.24 a little bit above it, but as noted it is a strong resistance zone there and bears put some pressure on the price pushing it down today. With this little retreat in hand Dollar "rivals" will find some breathing air, but it will not be for too long. 

 As the dollar retreats, the euro finds support after positive Draghi comments:

  • Forecasts show lower increase in ifnaltion
  • Draghi: We are very alert to global risks
  • Draghi: If needed, QE will be extended beyond Sept 2016
  • Price growth will take longer than previously expected to rise back to the ECB's near 2% target
  • ECB will increase its asset buying program if needed
  • But it needs more time and evidence to do so
  • Cites China's slowdown, rising euro, lower oli prices

 ECB is ready for action and they have the tools if needed to intervene.The price opened at 1.11251, dropping to 1.11047 and moving inside the support buy zone at 1.1436, ECB swooped in and lifted the price to 1.12133 for the close at 1.11802. 

 Crude Oil dropped like a rock from its high at 47.23, opening at 46.57 and bears found themselves at 44.49 for a close at 44.65. Crude Oil Inventories was the catalyst for the move down as it turned out that there is more Oil stored. This moved the price bellow the daily trend line and exactly to the market two-bottom levels as the price finds support there. Still if the market continues to be oversupplied the price will brake the level at 44.52 and continue its downtrend movement to 39.51.

 DAX30 is in a bit of a pickle situation as the price did indeed reached 9782.2 and pushed inside the zone hard. Yesterday the candle opened at 9525.9, made a low at 9483.9, high at 9711.4 and closed at 9603.9. 9330.2 is a very likely level to be touched by the price in the short-term if the same conditions continue to apply overall for stocks. 

 S&P500 futures opened at 1938, high at 1950.7, low at 1919.6 and closed at 1940.8. The price passed 1949 level and entered the zone, then tested it again on the upside, moving back down inside it. Somewhat a whipsaw actually. Still the DAX30 conditions applies for the S&P. If global fears remain shrouding the world into uncertainty, energy prices continue to slide, EMs continue to slide, stock prices will be subdued by these events. If the downtrend resumes sharply after getting out of the range in which S&P500 is, the next level to watch is 1900 and if it is broken - again the price may stumble across 1875. 

 USD/JPY is whipsaw-ing like hell in the range it is currently now with the uncertainty over offshore situation, FED, EMs and Currency War. Seems that the levels between 119.928 and 119.608 are the buffer zone now for the price which if goes lower it will test again 119.267. Yesterday the price opened at 120.130 with high at 120.538 and a low at 119.260 for a close at 120.275. 120.000 is being tackled also as the price finds there additional support from the bears or the bulls, depending on which side will prevail.

  Gold from yesterday (O:1124.2140 H:1134.230 L:1121.882 C:1130.16) finds support after the slight correction from 21st and 22nd September. Risk-off is getting the price higher as money are going into the safe heavens. Still 1139.948 is the top side's resistance line for the price to move up and to 1155.081. But if conditions remain negative for stocks, gold will find its way above 1139.948 and beyond. 


 For 23.09.2015 GBP/USD (O:1.53633 H: 1.53658 L:1.52197 C:152463) the price fell 137 pips down, reaching 1.52656, swiping stops on its way and breaching levels. Comments from the BoE about inflation and possible rate hike, overall Dollar strength put some pressure on the Sterling. If the zone doesn't hold, the price may drop to 1.51696 where maybe there it will find some support for a move up. 

 USD/CAD (O 1.32691 H:1.33567 L:1.32325 C:1.33258) busted trough all upside levels mentioned before, went inside the trend line again after the drop in Oil prices yesterday and from and now the price may search for a push to 1.33686.  


 AUD/USD (O:0.070879 H:0.70882 L:0.69883 C:070016) finished its correction from 0.69090 to 0.71746 and the price sharply moved down after comments for rate cut looming. The price will have to search again for an eventual support at 0.69090, but if the zone fails, the price will go down even further below to 0.66760.