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DOLLAR GOES UP UP UP

FTSE F-DEC16 6745.750 08:00 06.12
USD/RUB 63.806 08:00 06.12
USD/CHF 1.00590 08:00 06.12
OIL-FEB17 (BRENT) 54.685 08:00 06.12
COPPER-NOV16 2.6553 08:00 06.12
NZD/CHF 0.71775 08:00 06.12
CAD/CHF 0.75864 08:00 06.12
NZD/USD 0.71357 08:00 06.12
EUR/AUD 1.44544 08:00 06.12
CAD/JPY 85.854 08:00 06.12
AUD/USD 0.74454 08:00 06.12
AUD/JPY 84.756 08:00 06.12
GBP/USD 1.27552 08:00 06.12
VTB BANK 0.068930 08:00 06.12
TENCENT HOLDINGS 190.150 08:00 06.12
ROSNEFT' 350.875 08:00 06.12
GOLD VS SILVER 69.8109 08:00 06.12
EUR/GBP 0.84379 08:00 06.12
OIL-JAN17(WTI CRUDE) 51.435 08:00 06.12
SILVER 16.805 08:00 06.12
GOLD/EUR 1090.185 08:00 06.12
GOLD 1173.311 08:00 06.12
NASDAQ F-DEC16 4779.125 08:00 06.12
GOLD VS OIL 21.4558 08:00 06.12
USD/CAD 1.32590 08:00 06.12
S.BANK INDIA 259.675 08:00 06.12
AXIS BANK 460.725 08:00 06.12
TATA STEEL 414.100 08:00 06.12
TATA MOTORS 443.150 08:00 06.12
NIFTY F-OCT16 8181.500 08:00 06.12
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By: Adam Stone
January 20th 2014 7:05am GMT, London UK
 

***IMPORTANT NOTE: MARKET HOURS TODAY CHANGED DUE TO MARTIN LUTHER KING DAY OBSERVANCE IN THE USA.***

· All U.S based assets including stocks and Indices will not be available
· The end of the day for all Commodities will be 17:00GMT
· 60 sec trading will be available on preferred assets only from 17:00GMT

The dollar on Friday busted right through a number of very important levels and paved its way to further gains in the coming session. The only issue is that this rise came on the heals of a drop in some of the stock indices in the US. It’s not unheard of that the indices move one way while the dollar moves another. However, when the markets are simply unable to find consistent direction, you don’t expect the dollar to be able to forge ahead. But that’s precisely what occurred on Friday and it’s very possible that things will continue today. The dollar pushed right past 1.3555 agains the EUR this past Friday and the current support level is now 1.3517.

So the market today could be in for some interesting turns. For now the forex pair is on the up and currently trading near 1.3541.Despite our initial outlook on the pair, the current minor trend is on the up and up. The current short term resistance is likely to fall as the USD will have a hard time keeping its momentum in our opinion. The resistance is located at 1.3555 and a break could mean nice trading opportunities for binary traders starting with a break strategy that should work nicely considering the momentum levels. With the RSI on short term charts heading higher, a break of 1.3555 looks like a good time to go with Up options but not with end of day trades. Stick to 30-60 minute expiries with this one as things can get dicey on Mondays. We also don’t recommend employing reversal strategies for the time being. Even retests should be avoided as the overall momentum of the EUR/USD is likely to be tested and reversals, despite being in the direction of medium term trend, looks very high risk at the moment.

The only way this will change is if the RSI starts going neutral on us. If it does start to waver, then its off to the races with reversals on each and every test of 1.3555. The lower boundary (support at 1.3510) doesn’t look to be in any danger of even being tested in the coming 24 hours so stick with the upside view of the EUR/USD.

In other news, please note that the US stock market is closed today in honor of Martin Luther King. The bank holiday will likely mean lower liquidity and higher volatility on other indices as well as forex pairs. That’s also another reason why we recommend avoiding reversals unless of course the momentum as depicted on such indicators as the RSI, go flat. News on the day is expected to be very light and nothing in Europe will likely be able to deter the upward motion of the EUR/USD until it reaches the firing zone that is the resistance at 1.3555. Also, it is important to note that if this level does in fact fail to break fairly quickly, the market is likely to drop back down to test 1.3510, however this might take 24-48 hours to be reached, barring any dramatic news to hit the wires today.

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Adam Stone
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Adam Stone

As COO of GOptions, my first and foremost goal is to provide traders with the most up to date info from the markets. I have been trading the markets since 2004 and have been involved with stocks, binary options, and forex trading since then. I have had no formal market education and pride myself on a self taught approach to everything related to trading. I try to focus though on both the technical and fundamental aspects related to each trading day and bring forward the most important aspects of risk/reward in the market.
Adam Stone
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