Market Brief Series / EP. 432 / 25th Oct. 2018

lordoftruth (71)in #forex • 6 years ago

Overall there is strength in the CAD, JPY, and USD, with minor strength in CHF. Weakness in the EUR and GBP, with minor weakness in NZD and AUD.
On the economic data front, the Federal Reserve released their Beige Book stating that the majority of districts reported a modest to moderate growth in the economic activity based on information collected on or before October 15. Also, the US manufacturing PMI rose to 55.9 in October from 55.6 in September, Services PMI increased to 54.7 from 53.5. US new home sales dropped to an annualized rate of 553,000 units in September from 585,000 in August.
USD regained traction on Wednesday, supported by the upbeat tone shown in the Federal Reserve’s Beige Book economic report.
Oil prices fell by around one percent on Thursday, coming under pressure from sharp selloffs in global stock markets, with U.S. stocks posting the biggest daily decline since 2011 to wipe out the year's gains.
AUD took a beating yesterday as the Dow Jones Industrial Average tanked more than 600 basis points. S&P 500 and the Nasdaq also reported sharp losses.
USD/JPY pair is trading just above the support of the trendline sloping higher from March lows, having printed a nine-day low of 111.82 earlier today.
EUR/USD breached its previous low dropping 0.6% to 1.1399. ECB is widely expected to hold its key rates unchanged later today. RSI has returned to levels above the neutrality level of 50, indicating that the rebound would continue for a while. As long as the level at 1.1425 holds as the key resistance, the intraday outlook remains bearish and a return to 1.1380 on the downside is expected. Alternatively, a break above 1.1425 would trigger a further advance toward 1.1450 on the upside.
On the data slate there’s German Consumer Confidence; German IFO Current Assessment and Expectation; Euro-Zone ECB Deposit Rate and Interest Rate Decisions; US Continuing Claims; US Initial Jobless Claims; US Wholesale Inventories; US Goods Trade Balance; US Durable Goods; Euro-Zone ECB Monetary Policy Statement and Press Conference; US Pending Home Sales; US Kansas Fed Manufacturing Activity; US FOMC Member Clarida Speech; US 7-Year Note Auction and US FOMC Member Mester Speech.

Today Trading Plan

SELL EUR/USD @ 1.1410 OR BETTER – STOP @ 1.1480 – TARGET @ 1.1330
SELL GBP/USD @ 1.2875 OR BETTER – STOP @ 1.2965 - TARGET @ 1.2750
BUY USD/JPY @ 112.10 OR BETTER – STOP @ 111.60 – TARGET @ 113.50
SELL CL1218 @ 66.20 OR BETTER – STOP @ 67.00 – TARGET @ 65.50
SELL AUD/USD @ 0.7080 OR BETTER – STOP @ 0.7150 – TARGET @ 0.7020
SELL XAU @ 1235 OR BETTER – STOP @ 1240– TARGET @ 1222
SELL XAG @ 14.80 OR BETTER – STOP @ 15.30 – TARGET @ 14.00

THE ABOVE BRIEF IS MY PERSONAL OPINION AND DOES NOT CONSTITUTE ANY PROMISES OR GUARANTEES OF PROFITS. TRADING IN CURRENCIES AND COMMODITIES ARE HIGH RISKS. YOU SHOULD NOT TAKE ANY MATERIAL POSTED AS RECOMMENDATION.