Forex Signals Brief for Oct 3: Trade Worries Rattle Markets
Rowan Crosby • 2 min read
Just when markets thought trade worries were behind them, news yesterday has sent more shockwaves around the globe.
The US will impose tariffs on $7.5 billion on aircraft, food products and various other goods from the EU after the World Trade Organization authorized the levies yesterday. The news sent the SPX tumbling and there are likely more worries ahead.
There is also some big data out today that could well shape the day’s trade as well. As you might recall, earlier in the week we saw a less than impressive ISM number that sank the Greenback. Later today we will be getting an update on the ISM non-manufacturing PMI. If that number fails to please the markets then we could be in for another hit to the USD.
There are already growing concerns that we could be in for a soft NFP report tomorrow, based on what we saw yesterday from the ADP, where the prior month was revised sharply lower. So markets are already on edge from that alone.
During the European session, we have some top-tier UK data in the form of Services PMI, so the GBP/USD will be in-play early on as well. It’s looking like another very busy day ahead.
Forex Signal Update
The FX Leaders Team started the new month with 2 wins from 5 signals with GOLD proving to be a tricky trade.
Gold – Pending Signal
GOLD rallied sharply yesterday and is now back above the $1500 level as the safe-haven’s found a bid. We are all wondering whether there will be more follow-through today.
AUD/USD – Active Signal
The AUD/USD is in a longer-term downtrend and thanks to the RBA rate cut on Tuesday, we have seen a sharp decline. We are short under 0.6700, looking for more follow-through. This is a good area to short, but we need to ride out the pullback.
BTC appears to be holding the $8,000 level now and is making a strong case for a short-term bounce.
We have seen that level hold as well as what we would call a double bottom. Now on the latest pullback, price has made another higher low and looks to be pushing higher.
If price can break the $8,500-550 level, then I feel we could see a quick rally here back to $9,000.
I am still long-term bearish, so that $8,500 level is really shaping up as a key turning point for Bitcoin.