Forex Signals Brief for Aug 28: Yields Still Worrying Investors
Rowan Crosby • 2 min read
Despite consumer confidence picking up, it appears there is no end to the worries faced by investors.
At the moment, we are seeing trillions of dollars flowing into US Government Bonds that has seen the yield on the 10-year fall to 1.47%. So at the moment, there is a clear flight to safety.
At the same time, money keeps on heading into the USD as well as GOLD, all of which are the main risk-off trades.
For traders like us, this is actually a great opportunity. Generally when there is fear in the air, volatility gets elevated and that allows us as traders to capture bigger moves and get more value for our good trade ideas.
Today, the calendar is a little thin however, it will be worth watching WTI a bit later in the US session after a big draw from the API.
Otherwise, we will again be focused on the comments from Trump as well as putting plenty of attention on finding opportunities with the leading plays such as the commodity currencies and the key safe-havens.
Forex Signal Update
The FX Leaders Team finished with 1 win from 1 signal in GOLD in a quiet session.
GBP/USD – Pending Signal
The GBP/USD has continued to push higher in recent days, lifted by some positive Brexit talk. It is now getting to the point that there is speculation in the WSJ that shorts are looking to cover. So this will be a trade to watch going forward.
AUD/USD – Active Signal
The AUD/USD has fallen away further today after some poor construction data really hurt what was an already weak pair. We are closing in on our take profit here.
BTC is really starting to look bearish to me at the moment as it hones in on the $10,000 level.
From a technical perspective we keep making lower highs and as you can see on the chart below, this really looks like the classic bouncing basketball type pattern. Which is a sign of weakness.
Of course, we’ve tested this support before and its held, but to me I would not be surprised to see a breakdown in the coming days.