US Market Wrap

For the time being, it appears all bets on the outcome of the US-China negotiations remain positive. At least, that’s what we saw from markets yesterday.

The SPX edged higher as there is growing hope that we will see a phase one trade deal sooner rather than later.

That said, the Greenback, continues to fall away sharply, which has seen some upward pressure on the other majors. We continue to hear conflicting reports about what is actually going on behind the scenes so until we get a firm comment from either party, we are likely to see more of the same in terms of price action.

Today’s Agenda

All the attention today is really only on the one thing – US jobs. During the week, we saw a very soft ADP jobs number which is the private survey data. It missed expectation badly and that has worried a few analysts.

Today the expectaion is for 186K new jobs to be created, which would be a good result and the type of thing we’ve been seeing of recent times from the US.

We also have to keep an eye out for the USD/CAD as the Canadian number will also hit the wires around the same time.

I suspect markets will be quiet up until the release and the ensuing sentiment will be the big trade of the day.

Forex Signal Update

The FX Leaders Team finished without a winner yesterday, as we remain in some open positions.

USD/JPY – Pending Signal

The USD/JPY remains in this range that we’ve been in for a few months now. We are still hunting a long signal here if the price action is right.

NZD/USD – Active Signal

The NZD/USD has been very bullish after some changes to capital requirements by banks got delayed. That has seen the Kiwi break some key resistance and price looks strong. We are long hoping for some more upside.

Cryptocurrency Update

BTC continues to be what I would call, a very honest technical trade.

As we can see on the chart, price has been holding this trendline all the way down and despite a little false break, the sellers keep hitting it at each opportunity.

As price converges on the $7,000 level, we will need to be ready for a break out one way or another.

Either the downtrend will break and price will pop higher. Or that big support level will break and price will make another leg lower.

As traders, we don’t need to predict what will happen. We just need to stand ready to hit in when the breakout comes.