There are only seven trading days left in this year, and volatility in the FX market has already declined. While stocks and commodities still have noticeable price swings, the major FX pairs have been stuck in a range. There is a chance that the Federal Reserve press conference tomorrow could jolt the market, but that is far from guaranteed.
Which charts could be worth keeping an eye on towards the end of the year?
WTI has broken below a significant support at $50 - both technical and psychological. Despite the oversold conditions, it might take a while until the oil price stabilizes. The charts suggest that a test towards $41.50 could follow soon. To the topside, expect heavy resistance ahead of the $50 level.
In the meantime, Gold is benefiting from both lower US rate expectations and a general risk-off sentiment in the markets. XAU/USD is still struggling with the resistance at $1250 though, and bulls will need a clear break above that level to take control. In such a scenario, there could be a recovery rally towards $1300.
While most FX major pairs are consolidating at the moment, AUD/JPY could prove to be a more interesting currency pair. The Japanese Yen is benefiting from position covering (speculators covering their JPY short positions) and the risk aversion in the market. AUD/JPY was rejected at the 200 DMA, and in the short-term, another test of $80 support seems likely.
The information provided here has been produced by third parties and does not reflect the opinion of AxiTrader. AxiTrader has reproduced the information without alteration or verification and does not represent that this material is accurate, current, or complete and it should not be relied upon as such. The Information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any particular trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.
Stocks recover as Fed Chair Powell says, "The job is not done"; Oil's raging bull and FX's roaring commodity currencies