Market Brief Series / EP. 481 / 11 Feb. 2019
Overall there is minor strength in the CHF and CAD. Minor weakness in the EUR and AUD.
Oil prices fell by around 1 percent on Monday as drilling activity in the United States, the world's largest oil producer, picked up and financial markets were pulled down by trade concerns.
USD edged up against most other currencies on Monday in Asia as traders await further news on China trade talks.
GBP/USD pair trades little changed around 1.2930 before European session on Monday. The quote came under pressure on Reuters report that the UK PM Theresa May rejects opposition’s appeal to UK-wide customs union, raising another bar for smooth Brexit process at home.
USD/JPY pair trades positively towards confronting 110.00 at the initial hours of Asian sessions on Monday.
EUR/USD is under pressure below both declining 20- and 50-period moving averages. RSI is located at the selling zone between 30 and 50, confirming the negative outlook. Hence, as long as 1.1345 is not surpassed, expect a further decline with targets at 1.1300and 1.1265 in extension. Alternatively, a break above 1.1345 would indicate a bounce with 1.1360 and 1.1390 as targets.
On the data slate there’s Switzerland CPI; UK GDP; UK Manufacturing Production; UK Industrial Production; UK Total Business Investment; UK Index of Services; UK Trade Balance; UK Goods Tarde Balance; UK Total Trade Balance; UK GDP; US Unit Labour Costs; and US 3- and 6-Month Bill Auctions.
Today Trading Plan
SELL EUR/USD @ 1.1340 OR BETTER – STOP @ 1.1385– TARGET @ 1.1265
SELL GBP/USD @ 1.2950 OR BETTER – STOP @ 1.3000 - TARGET @ 1.2830
BUY USD/JPY @ 109.50 OR BETTER – STOP @ 108.70 – TARGET @ 110.20
SELL CL0319 @ 52.00 OR BETTER – STOP @ 52.50 – TARGET @ 51.00
SELL AUD/USD @ 0.7100 OR BETTER – STOP @ 0.7150 – TARGET @ 0.7030
SELL XAU @ 1312 OR BETTER – STOP @ 1318 – TARGET @ 1298
SELL XAG @ 15.75 OR BETTER – STOP @ 16.20– TARGET @ 15.10
