The week has started on a positive note as stocks, in particular, are riding a wave of optimism into new record highs.

The SPX in particular has jumped and has cracked through the illusive 3000 level after some positive headlines hit the wires yesterday.

The news that US President Trump is becoming more and more confident on a US-China trade deal, has the risk-on trade back in business. While there are plenty of investors who are excited at the prospect of another 25 bp cut by the FOMC this week.

All this comes at an interesting time as today we get a read on the sate of consumer confidence in the US. It has been a rocky road for investors to this point, but as the FOMC has started to loosen its monetary policy, while the jobs situation remains steady, there should be some reason for a decent level of confidence. 

Of course, the US-China dispute is far from resolved and that overhang of worry is the big one that does sit in the back of more traders minds at the moment.

Forex Signal Update

The FX Leaders Team started the week with 1 win from 2 signals while we just hit our take profit in the GBP/USD signal in early Asian trade.

AUD/USD – Active Signal

The AUD/USD will be in focus as the US-China sentiment continues to rattle its way through markets. It didn’t bounce as much as other risk assets and as such, we are short looking for some downside here.

GBP/USD – Pending Signal

The GBP/USD has been active lately as the EU has approved the delay, but the UK Parliament won’t approve an early election. We have been trading this on both sides here and will again be looking for opportunities around the key levels.

Cryptocurrency Update

After the recent China-induced BTC rally, it looks like things are starting to cool back off.

The $10,000 level appears to be a bit of a stopping point for Bitcoin now and the chart is starting to look like there could be a real ‘backside’ short opportunity here.

If that $9,000 level drops, then the chart would look quite bearish. It’s the type of price action we see after a sharp up move. As we can see, price ran into key resistance, then made a lower high, before dropping out the bottom

If that support drops, we could see more downside ahead here.