FX trading comment: Trade situation boosts the market, gold fell below the 1550 mark, today focus on Fed officials speech or boost the dollar!
2020-01-14 11:33 from：CAPSTONE author：Jack
Capstone forex trading review yesterday: On Monday, risk sentiment has improved, market concerns about the situation in the United States and Iran have diminished, and positive news on trade has also boosted risk sentiment. Gold fell below the $ 1,550 mark. Earlier this morning, gold fell short-term, reaching a minimum of $ 1541. The analysis pointed out that although the recent rally in gold seems to have stalled, technical analysis indicators show bullishness, close to oversold levels, and the price of gold may rebound in the next few days. Crude oil also continued to fall during the day. US oil fell below the 58 mark and cloth oil broke through the 65 mark. Both oil closed at the lowest level since December 4 and fell for five consecutive trading days. Investors no longer seem to worry that Iran will block the Strait of Hormuz, saying that the possibility of a military conflict between the United States and Iran is reduced.
In terms of foreign exchange, the US dollar rose first and then fell. The US dollar index closed at the previous day's closing price. The pound continued to fall due to weak GDP data and interest rate cuts. The pound fell below 1.30 against the US dollar, refreshing a two and a half week low. Demand has subsided and has been sold off.
Capstone Forex Trading Today Analysis:
(Europe and the United States M30)
Europe and America:
Today, the Fed's "three leaders" and New York Fed chairman Williams will also make a speech. Investors can pay attention to whether their speech conveys more guidance on the future monetary policy of the US dollar. It's also worth noting that Democrats in the House of Representatives will vote today to decide when to formally submit an impeachment clause to the Senate. US House Speaker Pelosi emphasized that if Republican members of the Senate refuse to call new witnesses during impeachment trials, Republicans will pay a political price. During the day, the upper pressure levels are 1.1145, 1.1173, and 1.1200, and the lower support levels are 1.1120 and 1.1092. The dips above the support levels are mostly based on short-term operations.
EUR / USD trading strategy:
Strategy 1: Do more on dips (10 points)
Entry: 1.1130 Stop Loss: 1.1120 Take Profit: 1.1140
Strategy 2: Go short (10 points)
Entry: 1.1120 Stop Loss: 1.1130 Take Profit: 1.1110
In terms of gold:
Today, the United States will announce December seasonally adjusted CPI data. The expected monthly CPI rate is 0.2%, which is lower than the previous value of 0.3%. Nonetheless, some analysts pointed out that due to the rebound in oil prices at the end of last year, the US monthly CPI rate in December may be boosted. The recent improvement in trade relations has brought down the price of gold. If the CPI data is better than expected, gold may be further suppressed. During the day, the upper pressure levels were 1553 and 1556, and the lower support levels were 1540 and 1522. The weak levels mainly retreated. Focus on the US data during the day. If the data is favorable, it will further suppress gold.
Capstone Forex Trading Focus Data Today:
China's December trade account (100 million yuan)
U.S. December NFIB Small Business Confidence Index
U.S. December seasonally adjusted CPI monthly rate
New York Fed Chairman Williams speaks
Kansas City Fed Chairman George speaks
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!
Why Choose Capstone Online CFD Trading?
* EURUSD Avg spread of 0.1 pips is the best in the world
* Starting Deposit $100
* Leverage up to 1:400
* Transfer your funds securely with 0% Commission
* Average execution speeds of under 45ms*
* Our diverse and proprietary liquidity mix keeps spreads tight 24/5