STA Blog

Never the shrinking violet, STA member and technical analyst at Financial Trends, Patricia wades right in as cable sits perilously on what many believe to be key support at $1.2600. Using the phrase ‘base-building’, and interestingly a 52-week moving average, she suggests that though sterling looks weak we might be in the process of attempting an interim low. The same thing is the case for spot gold, hinting that the phase of US dollar strength might be over.

She then turns to the euro against the greenback, pointing to and describing a doji candle (open and close at the same price). Trouble is, IG are one of the few data providers who quote and chart markets on a Sunday, thus explaining the tiny daily range. Like the Japanese yen against the US dollar, these are trading close to important psychological levels, where the yen’s value in a risk-off environment continues.

Moving on to commodities, with Brent crude she uses a 200-day moving average which has done a good job containing downside tests. Looking closely at the shape of each candle, she focuses on those with ‘not a full range below’ [the moving average]. These are the spike lows and the whiskers, or shadows, of the candles.

All round a balanced and cautious look at key markets where range-trading has dominated this year.

To watch, click here.