Markets Waiting for Jackson Hole Comments

Quote of the day: “We are never deceived; we deceive ourselves” ~ Johann Wolfgang von Goethe

Good morning. The big day is here as all eyes are on Bernanke at the Jackson Hole later today. Everyone is wondering whether he will hint of a third round of quantitative easing or similar measures. Except a few currency pairs and precious metals, the market has been rather choppy this week.

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Here’s what to watch out for now:

EURUSD

Still consolidating in a range, finding support on the rising trendline which is connecting recent higher lows. Resistance around 1.4500 providing selling opportunities on rallies

Euro Vs US Dollar 4hrs Chart 8-26-2011

Euro Vs US Dollar 4hrs Chart 8-26-2011

AUDUSD

As mentioned in my recent reports such as yesterday’s, I remain bullish on AUDUSD while carefully watching support near 1.0400. As long as we hold above, the Aussie has a good chance to break higher above 1.0500, following the equity indices; and Bernanke’s speech at Jackson Hole is likely to have a strong impact on equity markets, therefore AUDUSD.  So the plan here is to hold long while being ready to reverse position on the potential breakdown below 1.0400

Australian Dollar Vs US Dollar Daily Chart 8-26-2011

Australian Dollar Vs US Dollar Daily Chart 8-26-2011

EURCHF

Horizontal resistance at the round value 1.1500 is intact after yesterday’s test but sentiment is little changed, so while we’re up here – it’s a good idea to expect more gains, rather than a reversal.

Euro Vs Swiss Franc Daily Chart 8-26-2011

Euro Vs Swiss Franc Daily Chart 8-26-2011

Gold

It seems that the strong correction has come to an end, at least for a while – now that support at 50% of last up leg stayed intact. We now have a nice reversal candle suggesting that a test of former support at 1800 is in the cards.

Gold Daily Chart 8-26-2011

Gold Daily Chart 8-26-2011

This is all for now, have a great day!

8 thoughts on “Markets Waiting for Jackson Hole Comments

  1. shortbustrader

    There are only 14 people in the world that know what will happen in the markets after today. They are the 12 members of the FOMC, and 2 traders at Goldman Sachs. One for manipulating Gold/Silver futures, the other for the S&P futures.

    Reply
    1. liviu Post author

      yep, they are similar since it's all about the franc's weakness/correction these days, so it should be worth taking a long either at current levels but being really cautious about it since we're below resistance so it might turn ugly if it stays intact, either higher on strength / breakout

      Reply
      1. fx365

        Yup, took both trades and made 161 pips altogether. Shame I wasn't confident enough so I only risked £0.25 / pip. However, profit is profit no matter how small.

        Thanks for the advice. ;)

        Reply
        1. liviu Post author

          nice trades! everything against CHF was screaming "breakout, breakout!" for several days. I guess there are more buying opportunities now, until everyone and his dog return to safe-havens – and the question is whether CHF is *still* one of them :)

          Reply
  2. Pingback: EURUSD Above 1.45, But For How Long? | innerfx.com

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