Market Brief Series / EP. 428 / 19th Oct. 2018
Overall there is strength in the JPY, USD, and CHF. Weakness in the GBP, EUR, and CAD.
Oil prices nudged higher on Friday but were set for a second weekly drop amid higher U.S. crude inventories, an ongoing Sino-U.S. trade war and concerns over the death of a prominent Saudi journalist.
USD strengthened for the second day, still supported by the hawkish tone shown in Federal Reserve’s latest meeting minutes.
AUD/USD initially took off to the upside during the trading session on Thursday but could not break out above the 0.7150 level, as we continue to grind overall.
USD/JPY was slapped off its perch overnight as Europeans handover over a tired looking cross to the north American desks that took no risk in holding it vs the stock market collapsing yet again.
EUR/USD is under pressure below the key resistance level at 1.1490. The European Commission has asked the Italian government for an explanation of its excessive budget plans. RSI is located in the 30s, showing the downward momentum for the pair. As long as 1.1490 is not surpassed, intraday bearish bias remains with down targets at 1.1385. Alternatively, breaking above 1.1490 would trigger a technical rebound with 1.1550 as target.
On the data slate there’s UK Public Sector Net Borrowing; UK Central Government NCR; US Existing Home Sales; UK BOE Governor Carney Speaks in New York; US Baker Hughes US Rig Count.
Today Trading Plan
SELL GBP/USD @ 1.3040 OR BETTER – STOP @1.3100 - TARGET @ 1.2950
BUY USD/JPY @ 112.40 OR BETTER – STOP @ 111.90 – TARGET @ 113.10
SELL CL1218 @ 69.20 OR BETTER – STOP @ 69.90 – TARGET @ 68.10
SELL AUD/USD @ 0.7140 OR BETTER – STOP @ 0.7180 – TARGET @ 0.7050
SELL XAU @ 1225 OR BETTER – STOP @ 1228– TARGET @ 1215
SELL XAG @ 14.50 OR BETTER – STOP @ 15.00 – TARGET @ 14.00
investing considerable time and effort up front in
hopes of substantial returns down the road.