Fx trading Review: The pressure on crude oil continues unabated, and today Powell appeared in Congress to pay attention to the content of the speech!
2020-02-11 11:16 from：CAPSTONE author：Jack
Capstone Forex Trading Review of yesterday:
On Monday, gold maintained a sideways consolidation, once hitting $ 1,576 per ounce during the session, before giving up some of the gains, it finally closed up 0.11%. US stocks continued to hit new highs and the continued strength of the US dollar brought further pressure on gold prices. As for crude oil, the market has doubts about OPEC's ability to further reduce production. The two oil companies continued their decline last week. US oil fell below the $ 50 mark, with a drop of 1.57% during the day; cloth oil fell 2% overnight, and then the decline narrowed. WTI crude oil futures discount on Brent crude oil futures fell to 3.45 US dollars / barrel, the lowest level since March 2018.
In the currency market, the US dollar continued its strength. The U.S. dollar index hit a maximum of 98.9 and continued to hit a four-month high, rising for the eighth consecutive day. Non-US currencies are generally under pressure. The British pound and the euro have become a "difficult brother." The British pound fell to a two-and-a-half-month low against the US dollar and then rebounded; the euro against the US dollar also fell to a new low since October 2, 2019.
Capstone Forex Trading Today's analysis:
(Europe and the United States M30)
Europe and America:
Today and tomorrow, Fed Chairman Powell will testify on the semi-annual monetary policy report in the House and Senate. Today at 23:00, he will start the "first shot" in the House of Representatives. In addition to Powell, the heads of the other two central banks in the world will also appear today. At 22:00, European Central Bank President Lagarde submitted the European Central Bank's 2018 annual report to the European Parliament and made an introductory statement as part of the European Central Bank's monetary policy assessment. 23:35 Bank of England Governor Carney will attend a hearing of the House of Lords' Economic Affairs Committee to answer questions on issues such as financial stability and Brexit. Yesterday, key market indicators assessing long-term inflation expectations in the euro zone hit a two-month low. Concerned about the weak European economy and post-Brexit trade talks, JP Morgan Chase recently lowered its expectations for the euro. During the day, the upper pressure levels are 1.0938, 1.0975, and the lower support levels are 1.0900, 1.0878, and 1.0834. Below the pressure level, rallies and shorts are maintained, and short-term operations are the mainstay. Focus on the impact of Powell's testimony at night.
EUR / USD trading strategy:
Strategy 1: Go short on rallies (12 points)
Entry: 1.0926 Stop Loss: 1.0938 Take Profit: 1.0950
Strategy 2: Going Long and Going Long (12 points)
Entry: 1.0938 Stop Loss: 1.0926 Take Profit: 1.0914
Concerns about the risk of further spread of the new epidemic and its impact on the global economy continue to attract gold investment. At the same time, with the restricted physical market activity, the optimistic performance of the US economy and the performance of the US dollar index in the past four months are likely to Limit short-term gold's uptrend. As a result, gold long positions will continue until the impact of the new coronavirus on economic growth becomes clearer. Technically, it is not difficult to see from the Japanese K chart that although gold has stopped falling and rebounded, and has come out of a wave of 4 consecutive Yangs, it is not difficult to see that yesterday's upper shadow line has been longer, and the MACD indicator below is still at 0. Below the axis, so from the current trend point of view, the momentum of gold's continued upside is weak, and it may retreat at any time. During the day, the upper pressure levels were 1574 and 1579, and the lower support levels were 1567 and 1560. Continue to maintain the interval consolidation.
Capstone Forex Trading Focus on the data today:
UK fourth quarter GDP annual rate preliminary value
San Francisco Fed Chairman Daley speaks
Fed Chairman Powell Testifies
St. Louis Federal Reserve Chairman Brad speaks
Minneapolis Fed Chairman Kashkali answers questions
U.S. API crude stocks for the week (10,000 barrels)
[Capstone Forex Trading Disclaimer]:
This analysis and trading strategy is an objective description of the current market trend. Investors need to strictly follow the trend, light positions, and stop losses! Orders cannot be completely based on trading strategies, only for reference!
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