Forex Signals Brief for Dec 5: Markets in a Sea of Red
Rowan Crosby • 2 min read
It’s fair to say that Tuesday trade was an absolute bloodbath on world stock markets. Wall Street led the charge lower, with all of the major indexes getting crushed.
There was no one single reason for the broad based selling, but many are still doubting just how effective these trade talks between the US and China will actually be. President Trump tweeted that he is looking for a ‘real deal’ or none at all and so far equity futures have been modestly higher.
There are also growing concerns about the US yield curve becoming inverted. Inversion occurs when the longer dated bonds have a lower yield than those closer dated. That is generally suggesting the outlook for the economy isn’t all that good and we could be on the verge of a recession.
Either way there are some concerns for investors who have had a tough time of things this year as volatility is once again elevated.
Today there might be some respite from the selling as US markets remain closed in remembrance of former President George Bush.
Forex Signal Update
The FX Leaders Team put together another strong session finishing with 5 winners and the two losses..
GBP/USD – The GBP/USD is still right on support at 127.00. Brexit and political news continue to push this pair around, but if we can hold below this level watch out below.
Gold- Active Signal
Gold has seen a jump in the last week or so, but we have now run into some resistance and selling pressure. We are short here looking for a further pullback.
AUD/USD – Pending Signal
The AUD/USD has taken a bit of a hit this morning on the back of a bad miss in GDP. So far the 0.7300 level has been holding and if it does we might be able to grab a bounce here.
Bitcoin remains below the $4,000 level and the small bounce we saw yesterday appears to be wavering.
There is still hope around for the cryptos as the NASDAQ is pushing on with their plans to launch a futures contract.
However, on a technical level, we still can’t bounce and this resistance level is getting stronger by the day. We are now just waiting on another test of the lows to find out how serious these buyers are.