Faraday Research

It’s a central bank bonanza this week as the Fed, BoJ, BoE and SNB are poised to update the market. Here’s a technical snapshot of how the major FX pairs are shaping up. EUR/USD EUR/USD’s ‘short squeeze’ entered its second phase last week as the market pressed up into 1.0700. We’re seeing a whole host […]

On Wednesday, the US energy department released data showing that US oil stockpiles had risen to 8.2m barrels – a ninth consecutive monthly increase. This, combined with Saudi Arabia’s energy minister stating that the OPEC production cut was reinvigorating US shale rivals sent the Crude price plummeting. Prices fell 4.5% breaking lower from a prolonged […]

This week sees the second anniversary of the ECB’s asset purchase program and an ECB meeting tomorrow with Mario Draghi. He’s under some pressure to sound more bullish about the European economy and discuss a potential taper of this program. Asked in last month’s press conference if the ECB is ready to do less if […]

Here’s a technical snapshot of how the major FX pairs are shaping up as we kick off the trading week…   EUR/USD Friday’s ‘short squeeze’ helped to sober those dollar bulls who were anticipating a smooth decline into January’s lows. Friday’s price action also helped to reinforce the significance of 1.0500 as a level of […]

Yesterday saw the FTSE 100 rally 119 points to all-time highs, opening on its lows and closing on its highs for good measure. The intraday range was the largest since 7th December 2016 and is clear evidence of range expansion. However, as I outline below, the next move for the index is critical. Before delving […]

Well who would have thought it – a new U.S President sounding ‘Presidential’? Perhaps the most shocking thing in President Trump’s address to Congress was therefore that there was nothing shocking at all. The optimism and calls for unity for a ‘new chapter in American greatness’ would surely have suited an inauguration speech far better. […]

When prices are compressing and consolidating for a significant period of time, statistical tendency generally dictates that a period of price expansion will follow. The longer that period of price consolidation, the stronger the breakout should be. The daily cable chart stands out like a shining beacon in this regard. GBP/USD Daily Candle Chart Over […]

Having to ask younger esteemed colleagues whether they had heard of the above phrase shows how times have changed. Conversely, history tends to repeat itself and it is in this light that ‘Don’t fight the Fed’ seems particularly apt after yesterday’s semi-annual testimony by Janet Yellen. “Waiting too long to remove accommodation would be unwise, […]

EUR/USD After seven consecutive weeks of gains, EUR/USD had its first weekly loss since mid-December and the EUR rally looks to be rolling over. With prices finding strong resistance in the 1.08 zone and subsequently breaking out of an ascending bullish channel, there has been a key change in market structure. Fading any EUR rallies […]

Randgold Resources reported a great set of results on Monday and on the back of this prices gapped higher and broke through a key level of resistance. With the shares continuing to rally higher this week, it’s fair to say that the gold miner’s recovery is taking shape. Before looking at this week’s price action […]