Strange Markets Today, Be Careful
Skerdian Meta • 1 min read
Today has been a strange day; different markets which have traditionally correlated have been trading in the opposite direction all day.
Oil prices have lost about one and a half cents since this morning, both WTI (US Oil) and Brent Crude (London Oil). The Gold has lost nearly 30 cents since yesterday evening.
But on the other hand, the US Dollar is also declining. The Buck started to climb after the great US employment report. I thought that this was going to start an uptrend since the numbers were really good. However, it suddenly reversed and it´s now about 100 pips down against three other major currencies.
EUR/USD is edging close to 1.10, which is a big level. We have to watch this pair closely over the next few days since we have an open long term forex signal here.
We´re getting closer to 1.10 while the gap remains open
GBP/USD is also approaching the top of the range that it has traded in during the last week. We should consider opening another short term sell signal in this forex pair when the price gets close to 1.2950.
Commodity currencies have been declining too; the CAD decline is understandable since oil prices are more than $1 lower. Yet, NZD and AUD are declining as well.
Although, it is important to note that these last two currencies have been in a steep downtrend over the last couple of weeks. This means we´re getting close to some tempting levels; get ready for one or two sell forex signals in AUD/USD and NZD/USD. At the same time though, be careful because strange things happen in strange markets.