Fx trading Review: The U.S. refers to the infinity approaching the 99 mark. Today, Powell is in Congress again and many other Fed officials speak!
2020-02-13 11:06 from：CAPSTONE author：Jack
Capstone Forex Trading Review of yesterday:
On Tuesday, the gold shock fluctuated downward, ending the mild rise of the previous four days. At the beginning of the US session, gold fell from an intraday high of $ 1,573 to around $ 1,561, then rose up, and finally closed down 0.26%. Silver also fell slightly, with a drop of 0.68% during the day. In terms of crude oil, boosted by risk sentiment, the US and US oils finally improved, and once rose 2% within the day. Among them, the US oil company broke the US $ 54 / barrel level, and US oil once returned to the US $ 50 mark. However, the gains in the US session have narrowed, and the final oil distribution rose 1.44%, and the US oil closed up 0.62%.
In the currency market, the US dollar recorded a decline, but in general remained strong. During the European session, the US dollar index approached the 99 mark indefinitely. Boosted by strong British economic data, the pound finally changed its state of weakness, and the pound climbed to a maximum of 1.2968 against the dollar in the day. Yesterday's most noteworthy was Powell's congressional testimony. Fed Chairman Powell answered two questions that the market was most concerned about when he testified in the House of Representatives: One is whether the new crown virus will affect the US economy. He said it might, but now he judges It's too early. Second, regarding the repo operation, Powell made it clear that although the operation will continue in the second quarter, it will gradually abandon the active use of this measure in the future. It is worth noting that the New York Federal Reserve ’s 14-day repurchase operation was oversubscribed again on Tuesday, showing that the market still has huge demand for regular repurchases.
Capstone Forex Trading Today's analysis:
(Europe and the United States M30)
Europe and America:
Today at 23:00, Powell will also give testimony in the Senate, which is usually consistent with the testimony of the previous day, so the market is not expected to respond to this. However, investors still need to pay attention to whether Powell will add other views on monetary policy during the question. In addition, at 21:30, 2020, the FOMC Ticketing Committee and Philadelphia Fed Chairman Huck will speak on the economic outlook, which is his second appearance this week. In his last speech, he reiterated that the Fed should keep interest rates unchanged, and he may elaborate further on his statement today. During the day, the upper pressure levels are 1.0925 and 1.0975, and the lower support levels are 1.0878 and 1.0835. Short-term short orders below the pressure level are the main ones. After breaking the pressure, you can try the bulls. Today's focus is mostly on speeches by Federal Reserve officials.
EUR / USD trading strategy:
Strategy 1: Go short on rallies (10 points)
Entry: 1.0915 Stop Loss: 1.0925 Take Profit: 1.0905
Strategy 2: Go Top and Go Long (10 points)
Entry: 1.0925 Stop Loss: 1.0915 Take Profit: 1.0935
In his speech yesterday, Powell stated that he expected inflation to be close to 2% in the next few months, noting that the Fed would not use negative interest rates and would rely on used tools. The market believes that this optimistic statement on the US economic outlook is the main reason for the overnight gold decline. During the day, the upper pressure levels are 1574 and 1576, and the lower support levels are 1565 and 1562. Although they are still bullish in the long term, the upward momentum is lacking in the short term and they continue to maintain the interval consolidation trend.
Capstone Forex Trading Focus on the data today:
Eurozone monthly industrial output rate in December
Phil Fed Chairman Hacker speaks
Fed Chairman Powell Testifies
U.S. week EIA crude oil inventories (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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