Forex Signals Brief for Aug 7: Trade Tensions Ease for Now
Rowan Crosby • 2 min read
Markets have been shaken to their core over the last few sessions as the trade tensions between the US and China have taken over and seriously damaged sentiment.
Yesterday we saw a bit of a fightback as the SPX finished the session in the green as the bounce that we thought might come did follow-through.
The interesting thing though is that there is still an air of risk-off around the place. GOLD continues to push into the highs, while the Greenback hasn’t really bounced back.
We can also add in the surprise shock today from the RBNZ who have put out a 50bp rate cut. That has seen Asian markets really take an about face, and we will be watching the NZD/USD as we head into the European session.
Data is once again thin today, but as I’ve been saying that hasn’t mattered all that much this week as sentiment is king at the moment.
Watch out for Ivey PMI for the USD/CAD later in the day as well as WTI crude oil inventories. But overall, be ready for and big downside moves as there is plenty of great opportunities for traders when markets are weak.
Forex Signal Update
The FX Leaders Team finished with 2 wins from 3 signals in another wild session where the bounce and reversal came hard and fast.
GBP/JPY – Pending Signal
The GBP/JPY has been selling off hard as there is clearly flows towards the safe-haven JPY. We are hunting a short here as the downtrend remains very strong at the moment.
Gold – Pending Signal
GOLD has been a huge trade since breaking the $1450 resistance level. It keeps pushing higher and we are going to keep looking for opportunities here, but be warned volatility remains high and stops need room to work. $1500 is rapidly approaching.
BTC has been doing its very best to crack through the $12,000 level, but so far the bulls haven’t quite been able to do it.
We’ve had a wild couple of days on markets and the big moves of Bitcoin have not been making headlines, although they probably should be getting more attention.
Like I said yesterday, if we can see $12,000 holding, I would look for a long position, otherwise waiting for a pullback to a key round number like $11,000 would be prudent.