Wednesday, 9 January 2019

Trading signals

Posted by Anonymous at 12:14 Labels:

We are back to normal after-holiday market volumes. However in the middle of the week investors are still focusing on the results of trade negotiations between US and China, which were extended to Wednesday, a positive sign for the markets. On Tuesday, the volatile dollar trading continued - however, all attempts of corrective growth were cancelled. Today, the focus of the players is upon so-called Fed minutes. The day promises to be interesting.

EUR / USD - no significant changes in the market
Yesterday's trading in the EUR / USD currency pair did not make significant changes in the balance of power. No important statistics was published that could become a driver for the movement of the main currency pair of FX market. However, data on the level of vacancies and labor turnover as well as a report on the volume of consumer lending came from the United States, but these prints did not affect the price dynamics and were mostly ignored. The resistance zone 1.1470-1.1485 continues to repel the attacks of the bulls and does not allow the pair higher. Regular attempts to go through this important price area ended yesterday with another downward rebound. At the same time, the important support of 1.1430 survived and was only pierced but not broken. If the market can strengthen to 1.1500, then perhaps it activates stop-orders located there, which will send quotes to the area of 1.1520. However, the main area of support is located in zone 1.1405-1.1400. We maintain positive expectations for this market, and we expect a tactical pullback that will activate new longs.
Trading recommendations - longs in the area 1.1405-1.1400.
GBP / USD - trading takes place in a narrow zone 1.2720-1.2780
The market continues to trade around 1.2780 mark. Attempts to test this mark continues. This zone holds the market for two months and proves to be firm. Of course, the fundamentally news background is now also not in favor of the British currency, but technically there were conditions for a local recovery of the oversold pound. The only obstacle to this is the level 1.2770. Tactical adjustments can be used to go long.
Trading recommendations - buybacks when rolling back to 1.2720 and lower
Gold - bulls have lost momentum and the market moves to side consolidation
Following the results of Friday's trading and the Monday session, we can conclude that the gold market has reached a local maximum around 1298 and the next stage of the current upward trend is the transition to local consolidation. Gold reached the tactical goal around 1300 during the so-called Christmas rally. We noted earlier this interesting moment when the failed New Year rally in stock markets was transferred to the gold market, which was facilitated by a sharply negative news background at the end of 2018 and early January 2019. Risks of a slowdown in global economic growth and the first signs of a slowdown in the US economy (Apple outlook for profits in 2019). However, strong data on the US labor market and expectations of positive outcomes of the China-US trade negotiations have radically changed the situation in recent days. Overall market sentiment has improved significantly — markets grew over four consecutive sessions, interest in risk returned, and defensive assets got under pressure. This is with regard to the fundamental background and so far it is not in favor of the continued growth of gold. However, technically, no significant changes occurred on the market - the bull formation remains on the chart. We maintain positive mid-term expectations for the gold market. After reaching the zone of 1300, profit taking sent quotes to a minimum of 1277 and the market is now trading in a narrow sideways range 1277-1290. However, we believe that the risks of going lower are high, support 1277seems fragile and can be broken through at the next sessions. The strong support level is located around 1269-1270. It is at these levels that one should look for as entry points for longs in this market.
Trading recommendations - longs in the zone of 1277 and below in the area of 1270

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