Update on supports and resistances. ( 01/03/2012 07:46 )
Pivot: 107.50
Our Preference: SHORT positions below 107.5 with 104.85 & 103.9 in sight.
Alternative scenario: The upside penetration of 107.5 will call for a rebound towards 108.75 & 109.35.
Comment: as long as 107.5 is resistance, look for choppy price action with a bearish bias.
Trend: ST Ltd upside; MT Ltd upside
Key levels Comment
109.35** Horizontal resistance
108.75** Horizontal resistance
107.5** Intraday pivot point
106.78 Last
104.85** Intraday support
103.9** Intraday support
102.5*** Intraday support
Tips
Never risk more than 2-3% of the total trading forex account One important difference between a successful and an unsuccessful forex trader in forex Market is that the first is able to survive under unfavorable conditions on the forex market, while an unsuccessful forex trader will blow up his account after 5-10 unprofitable trades in the row.
Even with the same trading system 2 forex traders can get opposite results in the long run. The difference will be again in money management approach. To introduce you to money management, let's get one fact: losing 50% of total account requires making 100% return from the rest of money just to restore the original balance.
NEWS:
Crude lower on U.S. supply increase
Crude oil futures traded lower Wednesday, after an official report showed a larger-than-expected increase in U.S. oil supplies.
On the New York Mercantile Exchange, light sweet crude futures for delivery in April traded at USD105.75 a barrel during U.S. afternoon trade, giving back 0.77%.
It earlier rose by as much as 0.88% to trade at a session high USD107.44 a barrel.
U.S. crude oil inventories rose by 4.2 million barrels in the week ended February 24, significantly higher than expectations for a 1.2 million barrel increase, per the EIA weekly report.
Total U.S. crude oil inventories stood at a five-month high of 344.9 million barrels as of last week, remaining in the upper limit of the average range for this time of year.
Oil traders also focused on comments from Federal Reserve Chairman Ben Bernanke.
In testimony to the House Financial Services Committee in Washington, Bernanke said he expects growth this year to continue "at a pace close to or somewhat above the pace" in the second half of 2011 and added that the bank expects to support the economic recovery with its "highly accommodative" monetary policy.
Markets showed a muted reaction to a report showing the U.S. economy grew at a faster rate than initially expected in the final three months of 2011.
The U.S. Commerce Department reported earlier that gross domestic product increased at a seasonally adjusted annual rate of 3.0% during the fourth quarter, up from a preliminary estimate of 2.8%.
Oil prices were higher during early European trade after the European Central Bank allotted EUR530 billion in three-year loans to European lenders, after receiving bids from 800 banks, significantly more than in the bank’s first long term refinancing operation of EUR489 billion in three-year loans to 523 banks late last year.
Oil prices initially spiked higher on the news, before retracing gains, as the high uptake on the operation sparked concerns that banks in the region expect liquidity pressures to continue.
Market participants continued to monitor tensions between Iran and the West and a potential disruption to oil supplies from the region.
Growing tensions between Iran and Israel remain a key factor in oil prices. Fears of hostilities between Israel and Iran potentially setting off a conflict sending oil prices sharply higher weigh in the market.
Israel and the U.S. have previously stated that all options are on the table in ensuring the Islamic Republic does not acquire atomic weapons.
Iran produces about 3.5 million barrels of oil a day, making it the second largest oil producer in the Organization of Petroleum Exporting Countries, after Saudi Arabia.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for April delivery gave back 0.07% to trade at USD121.48 a barrel, with the spread between the Brent and crude contracts standing at USD15.72.
Crude rises on surprising U.S. output data
Crude oil futures rose in Asian trading Thursday, buoyed by stronger-than-expected gross domestic product figures out of the U.S.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at USD107.19 a barrel, up 0.11%.
The commodity hit an earlier session high of USD107.23 and a low of USD106.83.
The U.S. Commerce Department reported that gross domestic product rose 3.0% during the fourth quarter, up from a preliminary estimate of 2.8%.
A stronger U.S. economy will need more oil and derivatives such as gasoline to operate.
While initial reaction to U.S. growth figures was lukewarm in energy markets, oil managed to rise on reports of heavy turnout at the European Central Bank long-term refinancing operation.
The ECB provided EUR529 billion in three-year loans to European banks after receiving bids from 800 institutions, much more than the central bank's first long-term refinancing operation late last year.
The measure aims to pump up the economy and ease credit conditions.
News of U.S. growth and ECB policy helped offset higher U.S. crude inventories, which grew by 4.2 million barrels in the week to Feb. 24, up for a second straight week.
Meanwhile the Federal Reserve Beige Book finds that manufacturing in the U.S. remains steady, which was also bullish for oil.
Tensions between the West and Iran about the latter's nuclear ambitions also kept the price of crude high.
On the ICE Futures Exchange, Brent oil futures for April delivery were up 0.09% and trading at USD123.00 a barrel, up USD15.81 from its U.S. counterpart.
The gap in price between the two contracts is pushing toward the higher end of a range between a nearly USD20.00 all-time high and a historical spread of USD1.00.
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