Thursday, 3 January 2019
FX TS
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trading signals
Market volumes have not yet returned to normal levels and will not be normal until next week. One of the consequences of a thin market is a high market volatility, and this is exactly what we saw at the beginning of the week, with a sudden drop in USDJPY and AUDUSD, it shook the entire FX market. The year begins in an interesting and volatile way, but what does all this mean?
EUR / USD - a sharp drop to the lower border of the medium-term range 1.1345
On Wednesday, the powerful US dollar gains in the thin market led the quotes of the European currency to a three-week low in the area of 1.1335. This is a demand zone and a strong technical level of support. In early trading on Thursday, we see weak market attempts of the market to recover from these levels; local resistance is located in the 1.1385 area. We believe that there is a good chance for market bounce off.
Trading recommendations - longs in the area of 1.1350-1.1365
GBP / USD- high volatility persists
American currency growth and the sudden weakening, of course, affected this market. Over the last two trading days, the British currency has demonstrated a trading range of almost 300 points. The pair GBP / USD on Wednesday was trading at 1.2775, but Thursday's lows on the chart is located around 1.2400 levels. In early European trading on Thursday, the rate rebounded up to 1.2475. The technical prospects for this market are uncertain. The market is within the old range with the boundaries of 1.2660-1.2480.
Trading recommendations - out of the market
Gold - gold continues to rally, the market targets $ 1300
Gold maintains a positive momentum amid growing concerns on a slowdown in the growth of the global economy.
The sharp increase in demand for defensive assets has again increased significantly amid negative news from the United States and China. On Monday, very weak data on activity in the manufacturing sphere were published in China, the PMI index fell to its lowest level in almost three years. Statistics continues to provide evidence of a slowdown in China’s economy.
Apple announced a lowering of the forecast for sales growth for the 1st quarter of 2019. These reports provoked a sharp decline in major stock indices both in the US and in Asia, which is traditionally accompanied by an increase in demand for so-called defensive assets. In the current situation, the greatest demand is observed for the Japanese yen, which is currently fixed against the dollar by 2.6%. Gold is also viewed by investors as the main defensive asset, but so far shows a more moderate growth, + 0.75% since the beginning of the trading day.
On the chart, we can see expected continuation of the bullish movement, the main goal for which is the level of 1300.00. The nearest support is in the zone 1267-1270.
Trading recommendations - purchases in the area of 1270.
AUD / USD - the market moves to the low of 2016, zone 0.6890
On Thursday in Asian trading, on the thin market, the Australian currency showed lows in the 0.6750 area. True, after this quotes recovered in the area of 0.6965. Thus, strategic market support - the area of 0.7015 was broken. The market aimed at the lows of January 2016, area 0.6890.
Trading recommendations - shorts
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