Market Brief Series / EP. 457 / 3rd Dec. 2018
Overall there is strength in the NZD, AUD and CAD. Weakness in the GBP, USD, EUR and CHF.
Gold prices rose on Monday in Asia while the dollar dropped after news that the U.S. and China agreed to put any new tariffs on hold for 90 days.
Oil prices surged on Monday after the United States and China agreed to a 90-day truce in their trade war, and ahead of a meeting this week by producer club OPEC that is expected to result in a supply cut.
USD/JPY has been capped following a bullish gap that opened the week due to what appears to be a willingness from China to play ball with the US trade accord requirements.
AUD/USD finds itself trading into the 0.7350 level, with intraday support coming from a better-than-expected Caixin PMI from China.
EUR/USD pair is under pressure below both declining 20- and 50-day moving average. Look for a new down-leg with target at 1.1210. Alternatively, crossing above 1.1500 would bring a technical rebound with 1.1625 as target.
On the data slate there’s Switzerland Retail Sales; Switzerland Purchasing Managers’ Index; German Manufacturing PMI; Euro-Zone Manufacturing PMI; UK Manufacturing PMI; Euro-Zone Investor Confidence; US Manufacturing PMI; US ISM Prices Paid; US Construction Spending; US FOMC Member Brainard Speech; US 3- and 6-Month Bill Auctions; UK MPC Member Haldane Speech; US FOMC Member Kaplan Speech and US Total Vehicles Sales.
Today Trading Plan
SELL EUR/USD @ 1.1375 OR BETTER – STOP @ 1.1430 – TARGET @ 1.1300
SELL GBP/USD @ 1.2795 OR BETTER – STOP @ 1.2860 - TARGET @ 1.2710
BUY USD/JPY @ 113.20 OR BETTER – STOP @ 112.70 – TARGET @ 114.00
SELL CL0119 @ 53.65 OR BETTER – STOP @ 54.10 – TARGET @ 52.00
SELL AUD/USD @ 0.7340 OR BETTER – STOP @ 0.7390 – TARGET @ 0.7250
SELL XAU @ 1225 OR BETTER – STOP @ 1232 – TARGET @ 1215
SELL XAG @ 14.40 OR BETTER – STOP @ 14.80 – TARGET @ 13.85
investing considerable time and effort up front in
hopes of substantial returns down the road.