Market Brief Series / EP. 439 / 5th Nov. 2018
Overall there is minor strength in the USD. Minor weakness in the JPY.
Oil prices dipped on Monday morning in Asia after the U.S. said it would allow eight countries to import crude oil from Iran, easing market jitters over tight supply from Iranian sanctions that took effect today.
USD lost ground against most of its major peers on Monday, as growing expectations of an orderly Brexit bolstered the pound, euro and broader global investor sentiment.
USD/JPY pair has created a bull flag pattern on the 15-min chart. It is a bullish continuation pattern, which means an upside breakout would imply a resumption of the rally from the low of 112.79 and open the doors to break above the recent high of 113.23.
GBP/USD found bids in early Asian in response to a Sunday Times report stating that Prime Minister May has planned an all-UK customs deal with the EU, which would resolve the Irish border issue.
EUR/USD key resistance is at 1.1405. RSI is confirming the bearish outlook. As long as this key resistance is not surpassed, look for another decline with target at 1.1330. Alternatively, crossing above 1.1405 would trigger a rise with 1.1455 as target.
On the data slate there’s UK Services PMI; Euro-Zone Investor Confidence; US Composite, Services, and Non-Manufacturing PMIs; US 3- and 6-Month Bill Auctions and US 3-Year Note Auction.
Today Trading Plan
SELL EUR/USD @ 1.1400 OR BETTER – STOP @ 1.1470 – TARGET @ 1.1300
SELL GBP/USD @ 1.3020 OR BETTER – STOP @ 1.3095 - TARGET @ 1.2890
BUY USD/JPY @ 112.60 OR BETTER – STOP @ 112.00 – TARGET @ 113.50
SELL CL1218 @ 63.00 OR BETTER – STOP @ 63.95 – TARGET @ 62.10
SELL AUD/USD @ 0.7200 OR BETTER – STOP @0.7260 – TARGET @ 0.7065
SELL XAU @ 1235 OR BETTER – STOP @ 1242 – TARGET @ 1210
SELL XAG @ 14.70 OR BETTER – STOP @ 14.90 – TARGET @ 13.70
investing considerable time and effort up front in
hopes of substantial returns down the road.