Expert opinion

Technical analysis : USD/CAD unchanged on Election day

The US Dollar was almost frozen against all other currencies, including the Canadian Dollar, as the currency exchange rate was only four pips higher than the opening price by mid-Tuesday. Although, the pair experienced some volatility, it does not even matter, if the US presidential elections are being taken into account. The whole basis and policy of the largest economy in the world is about to be changed or enforced even further by the results of the election, which will come in the upcoming hours. If Clinton wins, the Greenback will surge, and vice versa in case of a Trump victory.

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A Special Looking-Ahead into FX, Indices, Gold, Silver and Oil

In his last webinar, Ashraf Laidi, financial analyst and trader, author of "Currency Trading & Intermarket Analysis", has analyzed different financial instruments, using technical analysis and seasonality.
In particular Ashraf Laidi focused on what will be the future movements of EUR/USD, Oil and USD/CAD prices.
Particularly timely was the forecast on Oil which, a few hours after the webinar, felt below the threshold of 50 dollars a barrel.

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Technical analysis : Gold trades below 1,300

The yellow metal was in a full on retreat on Friday morning, as it had erased all of Thursday’s gains. However, the situation seems only temporary, as the metal is still set to surge, as it is indicated by various factors. First of all, the metal has reached the support provided by the weekly R2 at 1,296.73. Secondly, trader set up orders are mostly long. Third is the fact that daily aggregate technical indicators forecast a surge. Last but not least, the US election is not over and the drama will continue.

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China and the Dollar (W. Snyder)

US dollar is overvalued and that investors would do well to move out of that currency. In the long run the national debt, which is currently 106% of GDP, and the balance of payments deficit, currently running at about 40 to 45 billion dollars a month, are unsustainable. Of course the US is the largest single economy globally and has huge reserves of coal, oil and gas besides extensive farming land. So it is not to be expected that the US dollar is going to collapse. It could soon however gradually lose 20% to 30% of its current value.

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