Market Brief Series / EP. 477 / 22nd Jan. 2019
Overall there is strength in the GBP and EUR, with minor strength in the JPY. Weakness in the NZD, CHF and CAD.
Oil prices fell on Tuesday as signs of a spreading global economic slowdown stoked concerns over future fuel demand.
GOLD appears to be marking time below the psychological $1,300 level as a slight rebound in the US dollar chips away at the upward momentum.
USD was steady on Monday amid thin holiday trading. The ICE Dollar Index slipped 0.1% on day to 96.32.
GBP/USD broke its overnight consolidative mode to the downside heading into the London markets.
AUD/USD pair is currently trading at the session low of 0.7143 amid risk aversion in the equity markets.
EUR/USD is under pressure below the key resistance level at 1.1385, which should limit the upside potential. RSI is around its neutrality level at 50, as long as 1.1385 holds on the upside, look for a return to 1.1355. A break below would trigger a drop to 1.1310. Alternatively, only a break above 1.1385 would turn the outlook to positive and call for a rise with 1.1410 and 1.1435 as targets.
On the data slate there’s UK Average Earnings; UK Unemployment Rate; UK Claimant Count Change; UK Claimant Count Rate; German ZEW Survey; Euro-Zone ZEW Survey; US Existing Home Sales and US Crude Oil Stock.
Today Trading Plan
SELL EUR/USD @ 1.1390 OR BETTER – STOP @ 1.1430 – TARGET @ 1.1310
SELL GBP/USD @ 1.2880 OR BETTER – STOP @ 1.2940 - TARGET @ 1.2800
BUY USD/JPY @ 109.30 OR BETTER – STOP @ 108.80 – TARGET @ 110.30
BUY CL0319 @ 54.00 OR BETTER – STOP @ 53.60 – TARGET @ 54.80
SELL AUD/USD @ 0.7170 OR BETTER – STOP @ 0.7240 – TARGET @ 0.7085
SELL XAU @ 1280 OR BETTER – STOP @ 1288 – TARGET @ 1270
SELL XAG @ 15.20 OR BETTER – STOP @ 15.80 – TARGET @ 14.75
