Daily Market Review for Tuesday

Daily Market Review for Tuesday, August 5th 2014:

OIL

Key Levels: High at 103.32/Low at 97

Hurricane season is open

August is the true start of the Atlantic hurricane season and trouble in the Gulf of Mexico often means price surges. Over the last decade August and September have been the only months in the calendar when the oil averages a higher increase in price. Our commodities experts here TitanTrade

took the mission even further, stretching the statistics over the last 30 years and they observed an even better correlation between the price of oil and the start of the extreme weather season in the Americas. Both the technical and the fundamental analysis indicate a potential surge of about 5$ over the next 4-6 weeks. This analysis coincides with the formation of hurricane Bertha over the Atlantic. At this moment, according to the weather agencies, Bertha isn’t a risk for the eastern coast of the US but all this could change in a minute if the winds will push her to the shore. The Chief Trader at TitanTrade, Oscar Duval, sees a strong bullish trend for the oil and suggests to all traders, irregardless of their preferred trade time frame to look over the attached graph for the oil, the support level of 97 still holds and marks the end for the technical correction. Up

Key Support Levels at: 97.53/97

Key Resistance Levels at: 100/101.2/103.32

AUD/USD

Key Levels: High at 0.9421/Low at 0.9271

RBA leaves cash rate at 2.5%

The Reserve Bank of Australia left the target cash rate at 2.5%, as expected. Their statement said that the inflation is considered to be consistent with target, strong expansion in the housing construction is expected, a period of stability of rates is under go, there are signs in the labour market for improvement, wage growth will be modest but steady over the next period, the outlook over the Australian banking system remains stable on continued economic growth, over the next 12-18 months the asset quality will be stable, and, finally, the headline economic growth should remain sound, at around 3% for 2014.TitanTrade ‘s Head Analyst interprets all the good news from Australia as head-wind for the AUD/USD. The current price is around 0.9340 and the targeted resistance level is 0.9421, around 1% higher. A small double bottom candle figure on the 2H time frame marks the reversal for the small correction the currency pair undertook these previous days. 0.9421 is also an important Fibonacci retracement level marking the expected 1% growth over the next week as a technical high-probability movement. The experts of  TitanTraderecommend always having a diversified portfolio in the market and see this currency pair as a wise choice for the medium-long term investors. Up

Key Support Levels at: 0.9310/0.9295/0.9271

Key Resistance Levels at: 0.9367/0.9393/0.9421

USD/JPY

Key Levels: High at 103.09/Low at 101.75

The trend is your friend – the Japanese Yen edition
TitanTrade analysis on the very long term movement for the USD/JPY reveals an interesting trend – during August and September the pair lost almost 1% over the last 10 years. The Bank of Japan cash rate decision is to be made on August 12th and the expected results for that meeting is, basically, no news. The Governor is expected to leave policy unchanged and keep the optimistic tone up. The GDP is not expected to disappoint and, in this case, we should see a value increase for the Yen. Technical analysis experts of TitanTrade expect no surprises from the August 12th meeting in Japan and also expect that the monetary policy in the US will keep being a hot subject in the markets. The fundamentals line up pretty good for the USD/JPY seasonal weakness. The most probable scenario for this currency pair will be one of strong risk aversion from the investors.
The support level of 101.75 marks the return in the median channel from which the pair escaped two weeks ago. The trading volumes and the volatility indicate a emphasis on put trades for USD/JPY. Down

Key Support Levels at: 102.32/101.97/101.75

Key Resistance Levels at: 102.73/102.82/103.09