Market Brief Series / EP. 486 / 18 Feb. 2019
Overall there is strength in the GBP with minor strength in the AUD and NZD. Weakness in the EUR, USD, CHF and JPY.
Oil prices rose to their highest levels since November last year on Monday, lifted by OPEC-led supply cuts and U.S. sanctions on Iran and Venezuela.
Gold is fast closing on a year-to-date high of $1,326 reached on Jan. 31 and may break higher toward $1,354 (100-month moving average) if trade optimism continues to hurt the US dollar.
GBP/USD trades around 1.2920 ahead of London open on Monday. Expectations surrounding soft Brexit and upbeat UK retail sales recently pushed the pair upwards.
EUR/USD closed at 1.1290 on Friday. The pair breached the key support at 1.1300 turning the short-term outlook bearish. In fact, it has broken below the lower boundary of a bullish channel drawn from November. It is currently trading at levels below the descending 20-day moving average, which has crossed below the 50-day one. The first downside target is located at 1.1210. The pair could pull-back a little today with the US holiday (President Day).
On the data slate there’s only UK House price Index.
Today Trading Plan
SELL EUR/USD @ 1.1320 OR BETTER – STOP @ 1.1350– TARGET @ 1.1210
SELL GBP/USD @ 1.2915 OR BETTER – STOP @ 1.2950 - TARGET @ 1.2820
BUY USD/JPY @ 110.10 OR BETTER – STOP @ 109.7– TARGET @ 111.10
SELL CL0419 @ 56.20 OR BETTER – STOP @ 57.30 – TARGET @ 54.80
SELL AUD/USD @ 0.7160 OR BETTER – STOP @ 0.7200 – TARGET @ 0.7080
SELL XAU @ 1327 OR BETTER – STOP @ 1332 – TARGET @ 1310
SELL XAG @ 15.75 OR BETTER – STOP @ 16.20– TARGET @ 15.10
