The short term rally for crude oil, came to a shuddering halt yesterday, as the December WTI futures (USO, quote) contract closed at $92.88 per barrel, having shed over $3 per barrel on the day, closing as a wide spread down candle on the daily chart.
The EUR/USD pair tried to rally during the session on Thursday, mainly predicated upon the fact that the statement from the ECB failed to mention any type of immediate actions to quell the rise of the Euro. The 1.40 level has been rather resistive, and on top of that the European Central Bank has suggested that the 1.40 level is in fact a bit too rich for their liking.
The first FOMC meeting this week is an historic one for many reasons. First it is the last time Ben Bernanke will chair the meeting. Second, for the first time in the FED’s history the Chair will be held by a woman, and third with several new members the voting pattern will be scrutinised very closely by the markets.
The warning flags of potential short term weakness have been flying for some time on the Dow Jones cash index, and the associated derivative E-mini YM futures contract.
The USDJPY pair rose during the session on Tuesday, breaking above the highs from the Monday session as well.
With markets having been given a more or less clear roadmap for the future of QE, and so removing a degree of uncertainty, it now only remains for us to monitor closely our benchmark charts, namely the USD index and the VIX , whilst keeping a close watch on price action and volume.
For intraday emini index traders, last nights FED meeting delivered a classic lesson in volume price analysis (VPA).
Gold bugs finally had something to cheer about today as April gold futures finally awoke from their recent slumbers, trading higher in today’s session, and moving to test the $1600 per ounce price level. The catalyst for this modest recovery for gold was from the ECB, with suggestions that inflationary pressure was easing in the Eurozone, but hardly sufficient to spark a reversal in the longer term trend!
Gold bugs finally had something to cheer about today as April gold futures finally awoke from their recent slumbers, trading higher in today’s session, and moving to test the $1600 per ounce price level
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