Top 5 Things to Watch During The U.S. Session!

Posted Wednesday, May 9, 2018 by
Arslan Butt • 2 min read

So far, the market has been volatile due to the impact of rising U.S. Treasury yields and the reactions to Trump’s Iran deal decision. But during the U.S. session, we have a lot of top-tier reports on tap. Watch out for 5 things during the New York session today…

 

Gold – Triangle Pattern

Recalling my earlier update Gold Depressed Around $1305, the idea was to buy gold near $1,302 but unfortunately, it reversed from $1,303 missing our buy limit just by inches. As of now, gold is trading near $1,313. So, my plan is to take a sell position below $1,316 with a stop above $1,319 and take profit at $1,306.

 

Nikkei – Bearish Trendline Setup

Global stock market indices are trading sideways in the wake of mixed fundamentals. Likewise, Japan’s Nikkei is also trading sideways with an upper boundary of $22,460 and a lower boundary of $22,365. Therefore, we open a forex trading signal to open a sell position below $22,435 with the target of $22,375, along with a stop above $22,475. The signal is doing well and investors are advised to move stops to break even.

 

U.S. PPI M/M

In an hour, the Bureau of Labor Statistics will be releasing the PPI figures. It’s expected to drop to 0.2% from 0.3%. The lower PPI could lead to a lower CPI. This would pressure the central banks to release dovish monetary policies.

 

RBNZ Monetary Policy  

The RBNZ (Reserve Bank of New Zealand) is due to release the cash rate at 21:00 (GMT). The RBNZ is expected to keep the rate on hold at 1.75%. Inflation slipped towards the lower end of the inflation target of 1%-3% over the medium term, however, the labor market remains tight. RBNZ is also due to release its policy statement along with the rate decision. Refer to our May 9 – Economic Event Outlook for a detailed brief. 

 

GBP/JPY – Double Top

Lastly, the GBP/JPY has soared below a double top resistance zone of 149.450 and that’s where I would be looking to take my sell position. The stop is likely to be at 149.750 along with a take profit of 148.500.

Good luck and trade with care!

 

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About the author

Arslan Butt is our Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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