AUDUSD and GBPUSD have synchronically tested dynamic supports based on descending trendlines from 09.Dec and 29.Dec, accordingly. i.imgur.com - the screenshot reflects AUDUSD to GBPUSD correlation. Although in mid-term perspective it's evaluated as regular, in last month it's clearly above average value which supports view on correlated rebound.
Safe haven money flow continues to support gold. USD also getting weaker as Fed rate hikes are getting less certain, both supportive for some XAUUSD buys. I expect SPX500 to touch lower levels next week and xauusd to go higher.
CHF and EUR positive correlation has held up so far in 2016, opening the door far a long entry here. The only shocks to the downside would come from China devaluation/dollar selling overnight. With that considered, long at this breakout with three points of contact on support should show profits.
AUDUSD has been in a counter-trend move since September, 2015. An early indication that selling pressure is dying down is by fractal counting. As you can see, this pair failed to make lower lows from September and onwards. I currently believe it is too early to tell if this trend is over, but I highly doubt it. From my moving average settings, they have converged...
I struggle to fully understand the connection here, if anything I would have thought the direct correlation between these two assets would exist. Flight to safe haven be it a cryptocurrency or an asset like gold, I would have thought the same fear drives these actions. This chart is contrary to that view / idea, here we have seen a pronounced tracking since...
Continuing on from yesterday's chart, this extract comes from the Possible EUR/JPY and NZD/JPY Correlation Trade blog on the Vantage FX News Centre. Zooming into the NZD/JPY chart on its own, you can see that price is still sitting right on resistance while EUR/JPY got the beginnings of a potential rejection yesterday. If you took yesterday’s EUR/JPY short and...
Both #GOLD and #SILVER are in correction phase for exactly 4 years now which looks like ending very soon. Bullish Divergence on both metals is already giving strong signal of Bulls getting ready for longer term... Keep eyes on it !!
Man.. There is a lot going on in this chart. Please excuse the mess everyone. I've been monitoring the USDCHF for quite some time now, and we've almost reached our target zones. We're currently setting up for a nice long term trade than could easily come into our favor given that there are so many clues and indications that we could very well see a major drop in...
Following WTI OIL downtrend failure last Friday, USDRUB tagging its relevant uptrend border first time since it started its descend back in July, marked by lower 1st standard deviation from quarterly (66-day) mean (@65). If the price manages to break below the border, chances are the uptrend is over (or at least current leg of it). Full stop of the uptrend,...
USDRUB was trending upwards in correlation with WTI Oil descend since beginning of July Currently Oil fell to its 2015 lows (slightly below them now) while USDRUB was holding 65 level with apparent Central Bank of Russia support. CBR is selling USD against RUB in attempts to stabilize the national currency. If the Oil trend down stops at this level, USDRUB is...
JBLU has shown a strong correlation with USDCAD, as both financial instruments are inversely correlated with oil (shown below). It should also be noted that USDCAD has recently broken out of a cup and handle pattern on the monthly chart and a continued rise could be an early indication of similar price action in the aerospace sector. The wave count for USDCAD...
Since mid-summer 2014 the 10-Year Treasury Yield started correlating with WTI Crude Oil, which can be seen on the image below: The correlation was established as a result of dynamics of oil prices, when falling oil was perceived as a risk to inflation. Expectations of lower inflation have driven the 10-Year Yield down with the WTI Oil. Market has perceived...
*Position Update: As of 05/15/2015 @ 7:41 EST we liquidated both sides of this correlation trade with a profit of 28.6 Pips. The Trade: Long EUR/USD & Short GBP/USD The correlation between these two pairs is 96% over the past year. The widest the spread has got over that time is about 700 Pips. Over the past 18 months we saw the spread widen to approximately...
*Position Update: On 05/05/2015 we liquidated both sides of this correlation trade with a profit of 73.1 Pips while taking advantage of the correlation spread narrowing after the interest rate decision in Australia. A nice correlation trade is setting up between AUD/JPY & CAD/JPY. The spread in the correlation is currently 200 Pips, over the past year the max...
*We booked a profit of 27 Pips. Even though the spread is from from closing we decided to take the profit and move back into cash. Of course if this spread narrows we will be leaving a lot on the table but we are happy with the gain from a low level risk trade. We will be initiating 1/2 our position in a correlation trade of USD/SGD to USD/JPY. The spread is...
I am a little bit confused here. I always thought that Bonds trade in different direction to indices. But as per the chart they seem to be going same way. Any inputs, anyone??
As you could remember during the last Greek crisis the Bund Yield fell even to negative territory, this was due the haven factor in the biggest economy in EZ Now that every body says that the situation is much better than in the 2012 the Yield (as you can see in brown, remember that the price of Bund is inverse to it's yield) is even lower. Why? The mail reason...
In the grand scheme of things it looks as though a shift is ready to take place. It has taken me some time to realize that shift but it is finally here. Take look at the GBPEUR to the left. Notice how its price moves are converse to that of WTI, EURUSD, and XLE. The yellow circles you see are areas where similar behavior is forming. In the GBPEUR the opposite...