Good afternoon, dear friends,
On Tuesday, the US dollar remains near highs. The main reason for this is US Treasury Secretary Steven Mnuchin’s statement that China trade talks will happen in two weeks.
Despite the fact of tensions' ease in US-China trade war, the risks of a global recession are rising. This is what holds back the American national currency growth.
Today Sterling spiked in value as Boris Johnson’s decision to suspend Parliament was ruled unlawful by the country’s highest court. It makes the prospect of a no-deal Brexit less likely and has triggered calls for Johnson to resign over the ‘unlawful’ decision.
More news to pay attention to:
- 14:00 CEST - housing price index in the US;
- 15:00 CEST- data on consumer confidence index in the US.
GBPUSD - considering buying from the area of 1.2281-1.2341
The pound is located in the middle of the range between the resistance zone 1.2521-1.2580 and the support 1.2281-1.2341. There are no grounds for entering the market so far; trading scenario implies decline continuation and entering the support zone.
One can search for reversal constructions solely in the range of 1.2281-1.2341 and perform buying with take-profit located at 1.2521. If a reversal does not take place, then one can try selling at the extension with the target at 1.2160.
Gold is located close to strong resistance
Here, both buy and sell trades are considered. XAUUSD chart is located within the range 1516-1524; this zone might be broken out, and a reversal from this zone might take place. The following scenarios are considered:
- a reversal - requires a clearly visible attempt to break out the resistance and a reversal M-shaped pattern.
- one can buy in case the chart continues lateral movement within the resistance area and forms an extension. Place take-profit at the marks 1531 and 1550.
Gas - only sales are considered
As for this instrument, sales season has begun, and since it's not recommended to trade against the market, only deals for sale are considered. At the moment, the chart is located within the support area 2.503-2.550, no grounds for trading so far.
Formation of an extension will make sales possible. Place take-profit at 2.378. The pattern has already started forming; signal may be generated in the nearest future.
Oil - waiting for the GAP to be covered and looking for an opportunity to buy
The GAP formed due to the attack on oil facilities in Saudi Arabia has not yet been covered. We expect this to happen soon. After the chart enters the range 53.91-55.75, one can search for a W-shaped pattern and open trades to buy. Be sure to receive pattern confirmation - chart's consolidation above its High.
In case this scenario is being executed, place take-profit at 61.25.
You still have a chance to sign up for Horizon X special course. In our free reviews, we usually cover about 4-5 instruments, if you start working independently your options' range will grow bigger. One can get more than 10 signals daily, about 70% of them are executed.