Good morning, dear traders!
On Monday, the markets were reflecting the results of Trump-Xi meeting. On Saturday, the US and China agreed to resume negotiations on trade issues. Against this background, safe haven currencies began losing ground, and the dollar has gained support and is growing relative to the main currencies.
Trump said the decision on whether to take Huawei off the entity list would be left to later, adding that he will have a further meeting on Tuesday to discuss the issue. China, for its part, agreed to increase imports of U.S. agricultural products. Despite the fact that the agreements are only verbal so far, this has led to the growth of the dollar. Poor statistics on Germany and England in addition to quite positive data on activity in the US manufacturing sector have contributed to the situation.
On Tuesday pay attention to:
- 13:30 - activity in the construction sector of the UK;
- 19:05 - the speech by the head of the Bank of England Mark Carney.
Significant moves are expected in the pound, so don't forget about the Safe rule and move stops to breakeven.
We provide just a few signals within our free market reviews. You can increase their number to 20-30 a day if you start working independently. Just follow the link below, get free learning materials on Horizon X strategy and start studying. This will enable you to find entry points with 70%+ execution probability.
Sugar - waiting for growth and buying from the level 12.44
At the end of the previous week the June Low was tested, and a sharp rebound from this level took place followed by global imbalance formation at 12.44. It was broken through upwards on a sharp movement, and the chart is now getting ready for a downward correction.
One can buy from the level 12.44 with targets located at 12.61 and 12.96. Stop should be located at 12.27.
Fuel oil - waiting for a buy signal
The setup assumes downward movement and testing the level 1.9136. Global imbalance was formed last Tuesday, and its retest hasn't taken place so far.
When buying from 1.9136, stop should be located no higher than 1.8950. Fix profit upon the growth of the chart to the levels 1.9322 and 1.9695.
Gas - opening deals to buy at the completion of the downward movement
Here, we are interested in the chart's behavior near the level of 2.185. This global imbalance was formed a week ago; it was broken through upwards in an aggressive manner, and a sharp downward movement is observed at the moment. When touching the imbalance takes place, one can open deals to buy.
Target for long positions is located at levels 2.223 and 2.297. Stop for buying should be located below the entire reversal constriction - no higher than the mark 2.148.
Copper - growth is expected, buying from the level 2.6414
Here, an imbalance that was formed in the middle of last month is expected to work out. The breakout of the level 2.6414 was immediately followed by an attempt to retest it, but to no avail. This means that the global imbalance is still strong, so consider chart’s reaction to it.
Stop-loss for long positions is located at 2.6120. Fix profits when the chart reaches 2,6708 and 2,7296.
Monday's signals haven't provided entry points so far, still, don't remove pending orders. On hourly charts, execution may take up to several days.