Forex Trade Desk TheLFB Automated Trading Program
Japanese markets sent the Nikkei lower, with a fresh 1-hour sell signal that broke 10400, targeting 10250. S&P 500 futures will trigger a 1-hour sell signal when 1285 breaks as support, targeting 1265. German Dax futures look destined to test 7130, dropping off recent highs at 7180 unless a raft of volume hits on Friday.
Gold signaled short at 1335 in trade on Thursday with 1299 and 1285 downside reversal targets. Silver signaled short at 27.30 with 26.00 and 25.30 the downside reversal targets. WTI oil trade signaled short at 86.65 with 84.50 and83.75 the downside targets. Full detail will be posted and sent to clients when new signals hit.
Most import of all for forex traders is the fact that the dollar index remains resolutely stuck at 78.00, a huge area of support that has lead to tests of 82.00 on the last occasion since October 2010 that the price point was hit. A 1-hour candle that closes above 78.30 will likely trigger a bout of dollar buying against the major currencies.
The major pairs once again hit a rough patch as they struggle to make a move of note. Eur/Usd struggled to find buyers as it faced strong resistance in the 1.3780 area. Gbp/Usd moved briefly higher before immediately falling back to the opening price where it remains in a 50 pip channel. With the Aud/Usd's daily moving averages converging together the pair is being squeezed into a tight range that is channeling along the 50 day SMA for most of the session. The 20 day SMA at 0.9980 and the 100 day SMA at 0.9845 become new support and resistance.
The 20 day SMA is holding as support for the Usd/Cad as the pair stays near the confines of the previous day's highs and lows. Usd/Chf acted in much the same manner, struggling to make a significant move. Meanwhile, the biggest mover on the day was Usd/Jpy after the pair shot up 90 pips to find stark resistance at the 50 day SMA (83.05) and is currently bouncing around between the 20, 50, and 100 day SMA's.