Tag: us dollar

What happened at the OPEC Meeting on December 4th 2015

What happened at the OPEC Meeting on December 4th 2015

Financial Markets Explained
The Organization of Petroleum Exporting Countries or OPEC met for its bi-annual meeting in Vienna, Austria on December 4th, 2015. The OPEC meeting was crucial and gained considerable headlines into the run up to the meeting as investors were keen to learn whether OPEC would come together to cut Oil production due to the supply glut which flushed the global economies with tremendous amounts of Oil and leading to a sharp decline in Oil prices. However, much to the disappointment of many, the December 4th OPEC meeting was a non-event as the committee could not agree on cutting production and thus left the OPEC Oil production unchanged at around 31 million barrels per day, keeping the markets well oversupplied with Crude Oil. Was there any expectation of a cut to Oil production at the OP...
German DAX – Mind the weekly double bottom

German DAX – Mind the weekly double bottom

Technical Analysis
From the update on German DAX a few weeks ago, the index which was trading at 10009 managed to turn around from the lows to close last Friday at 10188.4. The equity index was supported by the fact that the ECB had signaled its willingness to expand the sovereign bond purchases. Although nothing was confirmed, the fact that the option is now on the table has been supportive for the German DAX Index. It remains to be seen if indeed the ECB will expand its balance sheet and of course, it all depends on how the Eurozone data continues henceforth. So far, the markets were surprised with a pickup in the Eurozone GDP which increased to 0.4% for the second quarter, beating estimates. However, inflationary pressures remain to the downside especially in light of Crude Oil prices being forecasted...
USDDKK Analysis – A long term short trade opportunity

USDDKK Analysis – A long term short trade opportunity

Technical Analysis
The US Dollar, Danish Kroner makes for an exotic currency pair to trade which usually misses the attention of many forex traders. From a technical perspective, the USDDKK paints a beautiful long term picture with current price action validating the technical pattern that has been formed. Starting with the weekly charts of USDDKK, we notice a very clear Head and Shoulders pattern that is formed, with the neckline coming in at 5.5740 region. The neckline was broken and price did drop a bit before retracing the moves and currently looks poised to test the neckline level. This brings us to the question of entry. While it is no brainer to short USDDKK from the neckline level, taking a more informed trade decision would help traders in gaining a better price for entering the market. ...