FX TS - Today US labor market data for December 2018 and Powell speech in market focus

2019 gradually enters its power, and we are witnessing a stormy start, as evidenced by the sudden collapse in the USDJPY pair. Now the market will expect the release of the expected monthly report on employment in the United States. In the light of the intensive liquidation of risky positions throughout the market, we returned to the situation where investors look at good news as bad and bad news as good. Today's trading will be interesting and volatile and just it is one of those days when it is better to stay out of the market and follow the situation from the outside.

EUR / USD - making weak attempts to recover, non-farm data in focus of the market

The situation in the market of the main FX pair continues to evolve interesting way. After the market pulled back to three-week lows in the 1.1350 area, on Thursday we observed a weak recovery of the market from these marks on technical factors. This market activity confirmed the importance of the nearest support - the lower boundary of the channel proved firm, and today the market is storming the nearest resistance around 1.1400. Today we expect a very intense trading day; the situation may develop in various ways. Firstly, the data on the American labor market for December will be published today, and secondly, the head of the American regulator Powell will speak as Wall-Street starts. All this can have a strong impact on the market and significantly increase volatility.

Trading recommendations - out of market

GBP / USD- volatility remains

The weakness of the US dollar finally allowed the British currency to move to a cautious recovery. After the increased volatility on Thursday, when the quotes first fell to 1.2425 and then returned to 1.2600, today GBP / USD market is trying to break through the resistance close to 1.2600. In early European trading, the pair achieved some success and is traded around 1.2673. Resistance is slightly higher in the zone, 1.2760-1.2770. However, taking into account the today's information background, we recommend to stay out of the market and watch the situation with positions closed We expect an increase in volatility.

Trading recommendations - out of market

AUD / USD - quotes returned to the level of 0.7040

At the start of European trading on Friday, Australian dollar almost completely recovered back all its losses, as there is the shadow left of a candle with a length of 300 points as a sign of high volatility. This is a trace of the so-called “flash crash” and precisely because of such a situation, it is recommended to stay out of the market in the “thin market” - the risks are very high. Technically, the quotes returned to the support zone 0.7000-0.7040. It is now quite difficult to predict how events will develop further. Dollar weakness suggests the possibility of a corrective movement, while the technical picture carries the risk of a resumption of negative dynamics. Taking into account the rich information background, we recommend to stay out of the market today as well.

Trading recommendations - out of the market

Gold level $ 1300 strong psychological resistance level

On Thursday, gold market practically tested the 1300 round mark. The market stopped at 1298, after which the players took profits and rolled back the quotes lower. Thus, today, the gold market may interrupt a five-day offensive series of a bullish trend. Technically, the conditions for the correction have emerged. The news background also suggests risks of increased volatility. Today, data on the US labor market will be published, and the head of the US regulator will speak. If traders move to a stronger profit-taking, the closest level of tactical support is in the $ 1,285 area. Stronger support is located in the $ 1277 zone. Our trading recommendations are to stay out of the market and fix some of the previously open positions. In the case of a rollback, new long positions can be opened in the area of 1285 and lower in the zone of 1277.

Trading recommendations- purchases in case of a rollback in the $ 1277 zone

https://www.fortfs.com