Parity On October 14th

Forex News and Events: The S&P GSCI Index reversed its 2011 gains in the last six consecutive trading sessions. As a matter of fact, the index tracking 24 commodities broke down 7.6% from a high of 684.15 on April 30th to a more than four-month low low of 634.25 during yesterday’s trade session. This downturn in commodity prices can be explained on the one hand by headlines from the Euro area, as markets seem to be pricing in a second round of elections in Greece as well as a probable EU exit. On the other hand, the marked slowdown of commodity-intensive economies such as China -see Newsletter May 14- pushed prices lower in light of atrophied demand and lower infrastructure investments. From the foreign exchange perspective, the Australian dollar having experienced a 34% appreciation ...

Commentary of the AUD/USD parity: The pair AUD/USD has validated on friday the breakout of 1.02, offering a new buy signal. The pair opened the week above 1.03 and is also validating a breakout of this level (new buy signal). The pair is currently making a pullback on this level. All indicators are bullish. We maintain to trade only long positions as far as 1.0150 is support. The breakout of 1.04 will give a new buy signal and open the way towards 1.05. In case of return below 1.0150, we will wait the breakout of 1.01 to advise short positions. See the previous analysis of the AUD/USD parity of October 14th, 2011 AUD/USD Analysis

Commentary of the AUD/USD parity: The pair AUD/USD made a pullback yesterday on 1.01 as support. The pair is currently trying to break the resistance at 1.02. All indicators are bullish. We maintain to trade only long positions as far as 1.0 is support. The breakout of 1.02 will give a new buy signal and open the way towards 1.03. In case of return below 1.0, we will wait the breakout of 0.99 to advise short positions. See the previous analysis of the AUD/USD parity of October 13th, 2011 AUD/USD Analysis

Commentary of the GBP/JPY pair : 130.33 acted as resistance and the parity touched the upper band of its bearish channel before the take up of its bearish movement. The return below 130 confirmed us the take up. Currently, the pair is testing the support at 129. The breakout of this level will give a new sell signal. We maintain to trade only short positions as far as 129.77 is resistance. The next support is at 128 (lowest of september 7th and 14th). See the previous analysis of the GBP/JPY pair of October 15th, 2010

Commentary of the AUD/USD parity: The pair almost reached the parity. The price just made a pullback on 0.99. Indicators are globaly bullish. We maintain to trade only long positions as far as 0.99 is support. The breakout of 1.0 will give a new buy signal for new highs... See the previous analysis of the AUD/USD parity of October 14th, 2010

Commentary of the EUR/JPY pair : We maintain our last commentary : 'The pair is still above 114. This level just acted as support for a pullback. Indicators are mixed. We maintain to trade the parity according the the key level 114: - Above 114, we advise to trade only long positions. The breakout of 115 will give a new buy signal - Below 114, we advise to trade only short positions. THe breakout of 113 will give a new sell signal.' See the previous analysis of the EUR/JPY pair of October 14th, 2010

Commentary of the GBP/JPY pair : The pair seems to continue its correction. However, we maintain to trade only short positions as far as 130.33 is resistance. A return below 130 will comfort our bearish feeling. However, if 130.33 is broken, we will stay neutral. Only a return above 130.86 will allow us to trade long positions (indeed, the parity is moving into a bearish channel). See the previous analysis of the GBP/JPY pair of October 14th, 2010

Commentary of the USD/CAD pair : The long term support at 0.9984 allowed the parity to rebound. Currently, the pair is testing a pullback on 1.0050. We maintain to trade only short positions as far as this level is resistance. The breakout of 0.9984 will give a new sell signal. However, between 1.0050 and 1.01 we will be neutral. See the previous analysis of the USD/CAD pair of October 14th, 2010

Commentary of the XAU/USD parity: On the way for new highs... The parity validate a breakout of the last highest at 1360, offering a new buy signal. All indicators are bullish. The price is now moving towards 1400. We maintain to trade only long positions as far as 1360 is support. A pullback on this level is possible. See the previous analysis of the XAU/USD parity of October 13th, 2010