Duration: 2 weeks
- working your way through lessons;
- doing practical assignments;
- discussing trading system specifics;
You Will Get:
Market had strong technical reboud down from resistance 458/62 and now will go to test buyers support 429/33. Above current price we have too many of resistance levels, through that it will be too difficult for market to break up
This week dollar will be trading sideways between 1.0520 – 1.0780, because of a lack of important news. Now market is waiting for Trump speech about future of new tax rates for business, that he will have on 28 february. On Wednesday we have “FOMC Meeting Minutes”, that will predict future of Fed % rate, but as Yellen told at previous week a twice in congress that: “Futures of new business tax rates is now most important for Fed and we need to include them in our future policy”.
Since last week we received WASDE news, where wheat increased export by 5%, due to that the price began to grow and further its target now is on level 451 and next resistance 458/462. In soybean we have not got any changes. Since the last news we have not been able to break the resistance of 1065, where the market is trading at the moment, so it looks overbought, with the potential development of the downward trend to support 1012. Sugar is trading in a broad sideways trend between level of resistance 21.55 and support 20.10. This trend could be a figure of a "double top" with trend turn down or "flag", continuing the upward trend. This week, on Wednesday, we have news "Sugar and Sweeteners Outlook: February 2017", which will determine the future of sugar price.
Perhaps, the market will be very difficult to determine the direction of the trend, if it ever will be. As Trump essentially squeezes the dollar sideways, at the same time strengthen dollar with taxes decreasing, but weakening it with desire to reduce the overall dollar rate and termination of % rates raising. At the same time, with tax cuts, FRS can begin QE to support the US economy, which would reduce the dollar. Euro is very negative because politics risks and will also continue its QE. The euro and the dollar markets are becoming too complicated for analyze and trade, so it is best to look at the alternative pairs/markets, such as: eur/gbp (where gbp power is already higherthen in euro), gold and agriculture markets. If on the next week Yellen will not say anything positive about strengthening of % rate, or her words will be neutral, market will continue to stay sideways awaiting of Trump words about future of US business tax decreasing.