Iron Ore Drops, Euro Dollar

on Support & Commodity

Opportunities

with Ashley Jessen May 18, 2014

Last week we saw quite a low volatility week. Moving into this week we

see a little bit of the same, but some of the plays we want you to watch out

for are, in particular, the iron ore stocks. Iron ore is fast approaching the

lowest level since 2012, in the likes of Fortescue and Arrium. The pure iron

ore players, have really been dropping significantly.

Other commodities that we're going to be keeping a close eye on are gold.

Gold has been range bound for a little bit and we expect a little bit of

volatility to pop out of that once this consolidation breaks.

Another one we've been covering quite extensively is copper. Copper has

been in a little bit of an uptrend, however it's been just dead for the last

week. It's been going nowhere, so we're expecting a little bit of a break

possibly either way for that one.

Another one that you really want to keep an eye on is Brent Crude. Brent

Crude is actually hitting the top of the range at around 109.5 fast

approaching 110, but the bottom of the range is down there at 106, so

support resistance traders will be looking out for a good range bound trade

there.

The other one that's had a little bit of volatility, in fact quite a lot, is the

EUR/USD. The EUR/USD was up there at around 139.5 and support is

currently at 137. It's sitting on 137 at a double bottom. We're expecting a

possible bounce there, so keep your eye on that one.

Moving on to the rest of the week, as far as the macroeconomic data is

concerned, we've got CPI figures out of Great Britain. That's one to watch.

The pound has come off a little bit recently, so we’re expecting a little bit of

movement there as well when the CPI numbers come out.

In addition to that we've got The Bank of Japan. They're releasing their

interest rate decision.

Consumer confidence in Australia will be a little bit of a play on the Aussie

dollar. The federal budget’s just been out so we expect a little bit of

volatility there to see what the consumer confidence levels are on that

one.

Towards the end to the week we start to see US new-home sales coming

out, but the big one to watch is the manufacturing data. Manufacturing

data will be coming out of Australia, China, the Euro zone and then moving

on to the US at the end of the week. It’s been a reasonable week as far as

the macroeconomic data, but plenty of opportunities for range-bound

traders.

In this week's Invast Insights, we’ll be covering the technical levels on the

EUR/USD. We’ll be having a look at the 2014 stock picks from Peter Esho.

We hope you have a fantastic week. Thanks a lot.

For the latest trading news and insights, visit us at www.invast.com.au