Tickmill - Analytics

    Tickmill

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    EUR in a triangle, WTI goes south!

    Good day!

    The latest FOMC protocols failed to surprise, thus strengthening the USD. It grew based on the New-York FRB head William C.

    Dudley claims that one should not overestimate this Friday’s nonfarms. Mr Dudley’s words can be interpreted as despite some disappointment on the labour market, FOMC is still ready to raise the interest rates in the coming months.

    EUR/USD

     

    The Euro has formed an ascending triangle, so it is better to wait for it to break through one of the sides of the triangle, and only then start a trade. Although we hope for the breach to happen on the lower side with further movement south.

     

    Brent, WTI and AUD/USD

    The US Department of Energy has disappointed oil buyers. According to DOE, the US oil resrves have hit their historical maximum. According to the the Departmant of Energy, one week before 3. April the reserves have grown 10,949 million barrels. Let me remind you that the reserves have been increasing for over three months now, which is a new historical record. With those news being the background, Brent and WTI oil oil prices have plummeted.

    Brent oil is wandering below the breached flag and breached neckline of the double top, but today during the news the price has bounced off those lines. With Brent we continue to wait for a price around 48-49 $/bbl:

     

    WTI oil on a daily chart has pushed back from the upper border of the range (54,20 – 44,15) and has formed a classic candlestick reverse model “bearish engulfing pattern”. That is why now there is a big possibility of the price falling to the lowest levels of the flat – 44,15 $/bbl, where we can see growth once again:

     

    Now lets talk about the Australian currency. Despite the recent decision of the Reserve Bank of Australia to leave the interest rates at 2,25% it has strengthened the aussie just a little. Still the central bank wishes to see AUD/USD at lower levels, considering the price drop for iron ore and demand drop from China – main trade partner. That is why we should consider aussie’s growth as possibility for sales.

     

    The Australian Dollar has formed a flat on the exhange market. From its topmost border we will set a pending selling order:

    Sell Limit 0.7910, Stop Loss 0.7960, Take Profit 0.7650.

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