Brad Alexander
FX Large Limited
Yesterday the US and China announced progress in trade talks and the markets reacted.
WTI and Brent Crude Oil shot up, rebounded and we are looking at a long position off the lower trend line and oversold technicals.
Another beneficiary of the good news was the US Indices like the DJ30, opening with a gap to the upside yesterday.
We see a pullback but watch the news.
This is only a 90-day pause and the tariff rates are still quite unfavorable to US business.
Any negative news could see global equities falling again.
Gold fell based on a stronger USD and we have a retracement to the upper side of a bearish channel.
We see a bearish MACD and we will keep an eye on the stochastic oscillator waiting for an overbought signal.
Silver, on the other hand, continued higher to resistance and we will look for technical reversal signals within this range.
Checking the economic calendar, we have lots of US news this week, based on inflation, retail sales and consumer confidence.
USD is stronger based on yesterday’s news so we will look for opportunities after these events.
We have Employment data on Wednesday and Thursday from Australia.
If we look at both currencies we get the pair AUDUSD with price action at the upper trend line and the stochastic oscillator overbought and turning down on the 1-hour chart.
While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
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