Euro Rally Gives Commodity Bulls A Glimmer Of Hope…
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The document discusses a recent article from Commodity Trading Research about how a rally in the Euro gave commodity bulls some hope. It summarizes recent market news including strong US job growth, OPEC's decision to raise oil output, and the ECB's smaller than expected stimulus package, which caused the Euro to surge against the US dollar. This sudden currency adjustment sent the US dollar and commodity prices like precious metals higher. The document suggests this dollar downturn may continue and presents some ideas for capitalizing on it, such as using inverse dollar ETFs or precious metals ETFs.
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Euro Rally Gives Commodity Bulls A Glimmer Of Hope…
- 1. Commodity Trading Research Euro Rally Gives Commodity Bulls A Glimmer Of Hope…
- 2. Welcome to Commodity Trading Research Your premier site for fundamental and technical analysis for profitable Commodity Trading. For more info on Commodity Trading Research visit our website www.CommodityTradingResearch.com
- 3. Get Your Free Report On The 3 BEST Commodity Stocks for 2016! We’ll tell you about this Special Offer at the end of the video!
- 4. Hi, My name is Justin and I‘m with Commodity Trading Research, today were reviewing our recently published article…
- 5. Euro Rally Gives Commodity Bulls A Glimmer Of Hope…
- 6. Without question, last week held someimportant market moving news… Here’s a quick recap:
- 7. • Friday’s US job report revealed another month of strong gains. Employers added 211,000 new jobs in November, which kept the unemployment rate steady at 5%.
- 8. With this report in mind, it’s a near certainty the Fed will raise rates in their December 16th FOMC meeting.
- 9. • OPEC sent the WTI oil price spiraling below $40 a barrel when they announced they’d raise their output ceiling to 31.5 million barrels a day in 2016. Not the news crude bulls were hoping for.
- 10. • European Central Bank (ECB) President Mario Draghishocked the currency markets last Thursday when he announced a much smaller than expected stimulus package for the Eurozone economy.
- 11. Traders heavily short the Euro were forced to cover quickly, sending the Euro surging 3% against the US Dollar.
- 12. Traders heavily short the Euro were forced to cover quickly, sending the Euro surging 3% against the US Dollar.
- 13. The sudden currency market adjustment sent the US Dollar steeply lower late last week. Take a look…
- 15. As you can see, the US Dollar index gave up an entire month of gains in Thursday’s wild trading session (green circle).
- 16. Thanks to the strong dollar downturn, precious metals markets ended last week on a high note. Gold rallied 2.2% Friday, while silver, platinum, and palladium tacked on gains of 3.4%, 4.2%, and 6.2% respectively.
- 17. Clearly, a weakening US Dollar has precious metals bulls jumping into action.
- 18. Will this dramatic Dollar downturn continue?
- 19. It’s essential to remember this month’s FOMC meeting (on December 16th) will very likely result in higher interest rates. Of course, a Fed rate raise in typically viewed as a bullish situation for the US Dollar.
- 20. However, given the severity of last Thursday’s downturn and the fact it happened at important long-term technical resistance (horizontal red line in chart above),
- 21. there’s a distinct possibility the Fed’s rate hike is already priced into the market. As a result, we could see an additional Dollar decline in coming months…
- 22. What’s more, we may see continued bullishness in precious metals and other select commodities in coming weeks.
- 23. Here are a few ideas for capitalizing on this development…
- 24. The Powershares DB US Dollar Bearish ETF $UDNis an inverse dollar tracking ETF. In other words, when the US Dollar falls, $UDN gains value. However, since $UDN is thinly traded it requires a careful entry and exit technique.
- 25. You could also make a simple bet on higher gold and silver prices through precious metals focused commodity ETFs.
- 26. No matter which ETF you choose, you’ll need stop loss orders below the recent swing low to control your trading risk.
- 27. Want More from Commodity Trading Research.com? Follow us on Social Media
- 28. Want more FREE information on Commodity Trading? Commodity Trading Research.com DOWNLOAD NOW!
- 29. 3 HOT Commodity Stocks for 2016 Trading Success! READ THIS FREE REPORT!