ISIS, the world’s wealthiest terrorist organization has announced its new currency and has declared its intentions to mint and distribute it in gold, silver and copper. The move was announced to be “purely dedicated to God” because the group wants to stay away from the “tyrant’s financial system.”
Is there a place for this new currency on the forex dance floor?
The US has said that Iraq could need to expand their army by 80,000 effective troops to be able to overcome ISIS. As such the US have said that the capacity of their troops in country may change if the “Iraq-first” approach to date proves to be less effective than they’d like. As yet they haven’ said the words ‘combat troops’ but certainly there will be a lot more ‘advisers’ carrying out ‘broader based’ roles.
Oil down, Dollar up
Oil prices fell further yesterday, which in turn fuelled gains the US Dollar. The gains were somewhat uneven though, with Mr. British Pound facing up to bigger losses against the currency as a key technical level was broken (I told you it’s gonna be broken!) which led to a larger move to the downside.
Some hot economic data stood behind the stronger Dollar too. Data showed that the US employment market is at its most active since September 2007, the peak before the collapse. The numbers of people being hired and also people quitting jobs were both very high, a sign of a confident labor force, who are either leaving for a higher paid job, or leaving in the belief that other work is easy to find. But is this new higher employment of under-waged college grads anything close to the pre-recession era?
No Recession… Probably
In Europe, France and Germany have narrowly avoided falling into recession, according to data out early this morning during the London session. The French economy grew by 0.3%, while the Germans scraped through with just a 0.1% gain in the third quarter of this year. Investors will take temporary comfort from the news, but it is unlikely that results so close to the wire will lead to any shift in the mindset that Europe is in trouble.
Bad Boys Will Pay
The US department of Justice has said it wants a full account of the FX market manipulation by banks on its desk by Mid-December. Finally someone seems to be taking the actions of the banks seriously. Earlier in the week the banks involved were collectively fined by the UK and US regulators, except Barclays, who believe they will be able to negotiate a fairer settlement if they go it alone.
Russia Buying Gold
Some interesting news from the World Gold Council, reported in the Telegraph this morning. Russia has apparently purchased 55 tons of gold in the last quarter, possibly in a bid to pop up their drowning currency. The move also takes advantage of depressed gold prices globally and, if Switzerland votes to force their central bank to re-stock their gold supplies at the end of the month, could be one very shrewd move.
Today we look for UK construction data as well as European inflation and US retail sales. The G20 also kicks off today, so we expect plenty of news flow from that and perhaps a very busy start to the markets on Sunday night.
Intraday Forex Technical Levels
EUR/USD 4-hour: Broke below the triangle.
Invest Diva Likes: Short positions below 1.2487 with targets at 1.2363 and 1.2299 in extension.
If Pair Goes Nuts: Above 1.2487 look for further upside towards 1.2563 and 1.2624.
What’s up on the Forex Dance Floor: The pair is about to confirm a break belowthe lower boundary of a triangle chart pattern while dancing below the Ichimoku’s cloud.This potential confirmation could open doors for more drops. The RSI is below the neutrality area.
Supports and Resistances
1.2624
1.2563
1.2487 Pivot Point
1.2363
1.2299
GBP/USD 4-hour: Reached our bearish target and dropping
Invest Diva Likes: Short positions below 1.5655 with targets at 1.5567 and 1.5481 in extension.
If Pair Goes Nuts: Above 1.5655 look for further upside towards 1.5719 and 1.5789.
What’s up on the Forex Dance Floor: The pair continues to drop down after reaching our bearish target at 1.5655 below the Ichimoku’s cloud. The RSI is moving below the oversold zone.
Supports and Resistances
1.5789
1.5719
1.5655 Pivot Point
1.5567
1.5481
USD/CHF 4-hour: Broke above the triangle.
Invest Diva Likes: Long positions above 0.9648 with targets at 0.9737 and 0.9815 in extension.
If Pair Goes Nuts: Below 0.9648 look for further downside towards 0.9592 and 0.9548.
What’s up on the Forex Dance Floor: We are waiting for the pair to confirm a break above the upper boundary of triangle chart pattern and Ichimoku’s cloud. The RSI is just above the neutrality area.
Supports and Resistances
0.9815
0.9737
0.9648 Pivot Point
0.9592
0.9548
USD/CAD 4-hour: Consolidating inside Ichimoku’s cloud.
Invest Diva Likes: Long positions above 1.1372 with targets at 1.1463 and 1.1570 in extension.
If Pair Goes Nuts: Below 1.1372 look for further downside towards 1.1317 and 1.1272.
What’s up on the Forex Dance Floor: The pair has just entered the Ichimoku’s cloud and is teasing its upper boundary as well as the 23% Fibonacci level at 1.1372. The RSI is moving above the neutrality area.
Supports and Resistances
1.1570
1.1463
1.1372 Pivot Point
1.1317
1.1272
USD/JPY 4-hour: Going up.
Invest Diva Likes: Long positions above 116.56 with targets at 117.50 and 118.86 in extension.
If Pair Goes Nuts: Below 116.56 look for further downside towards 115.60 and 114.16.
What’s up on the Forex Dance Floor: The pair reached our bullish target at 116.56 above the Ichimoku’s cloud. The RSI is above the neutrality area.
Supports and Resistances
118.86
117.50
116.56 Pivot Point
115.60
114.16
AUD/USD 4-hour: Broke above the Ichimoku’s cloud.
Invest Diva Likes: Long positions above 0.8754 with targets at 0.8829 and 0.8888 in extension.
If Pair Goes Nuts: Below 0.8754 look for further downside towards 0.8678 and 0.8544.
What’s up on the Forex Dance Floor: The pair is teasing the resistance level at 0.8754 after rebounding as breaking above the Ichimoku’s cloud. The RSI is moving above the neutrality area.
Supports and Resistances
0.8888
0.8829
0.8754 Pivot Point
0.8678
0.8544
