Weekly Wrap: EUR/USD Recovers Losses, US Equities Hits Highs

By reviewing and comparing market % performance we can gain a quick and convenient insight into where money is flowing to (and from) to help us refine our trading watchlist for the days or weeks ahead.

MARKET SNAPSHOT:

FOREX:
AUD/USD closed lower for the 5th consecutive week to further suggest we are back in line with the bearish trend established at the 1.06 highs. Our bearish target of 0.9250 was more than met as we closed the week at the 5 week lows. The AUD also lost ground against CHF, GBP, EUR and NZD so it appears a much stronger move is underway. Last week GBP/AUD closed at its highest level since August 2010.

EUR/USD recovered heavy losses sustained at the start of the week but marginally failed to test the previous highs. 1.358 is a key level to break for further gains to be anticipated. The gains seen on EUR/AUD finally broke the market out of its sideways and oscillating pattern which had been established since September so suggest a much stronger move may be underway.

INDICES:
US Equities continues to push to record highs whilst AUS200 retraces from the 61.8% retracement level. However the move appears to be corrective so the bias remains bullish despite the recent losses. JPN225 is back at 15600 as of today, its highest level in over 7 months. FTSE100 continues to be indecisive and choppy as it fails to keep up with the US counterpart, and a similar relationship can be seen between CAC40 and DAX as the DAX continues to push higher with CAC struggling to keep up.

COMMODITIES:
Gold has continued to respect our analysis as it keeps well within the Bearish Channel and finally broken beneath 1260 to find our 1245 support area. Whilst momentum and the trend is clearly bearish a bullish retracement to 1260 is likely, but further losses are the preferred bias overall. WTI raised suggestion of a bottom pattern forming but after a bullish rally on Friday failed to break above 95.90 we have now gapped down towards the M1 pivot. Brent however did break the critical level of 108.30 and traded all the way up to a 2 week high of 111.30 before selling off to produce a spinning top Doji and suggests near term weakness.

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The FSG and PDS should be considered before deciding to enter into any Derivative transactions with TF GLOBAL MARKETS (AUST) PTY LTD. Please ensure that you fully understand the risks involved, and seek independent advice if necessary. Also, see the section titled “Significant Risks” in our Product Disclosure Statement, which also includes risks associated with the use of third parties and software plugins. The information on the site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. 2013 TF GLOBAL MARKETS (AUST) PTY LTD. All rights reserved. AFSL 424700. ABN 69 158 361 561. Please note: We do not service US entities or residents.Silver is the biggest loser for the 2nd consecutive week running closing the week at the bottom of a sidewways range at 20.80. We shall have to see if this range holds moving forward, however Gold does raise some hope of at least temporary gains by producingh a Bullish Pinbar, making a retest of 1300 likely.