In the headlines: A mini breakthrough in Sino-US trade relations. US President agrees to a truce on tariffs with President Xi while they try to figure out a deal within 90 days.
Knowing Trump, this talking point won’t last because he can’t help himself.
In other news, oil recorded its weakest month in 10 years, with price down more than 20% on the back of a major glut in the markets.
EURUSD retraced back down 1.1325 as expected. We have no bias to recommend, but watch out for bounces back up to 1.1380 and 1.1430, and bids near 1.1290.
GBPUSD is holding firm with bids around the 1.2750 level we mentioned on Friday.
Likewise with the EURUSD, we don’t see a bias yet especially with volumes expected to dwindle ahead of Christmas.
Due to this, look out for stop runs in thin volumes towards sell stops around 1.2700-10 and 1.2650, as well as buy stops around 1.2800 and 1.2850.
AUDUSD gapped up from 73.25 to hold below offers at 73.80 cents following the weekend “news” of the US-China tariff truce.
In other words, it didn’t really move that much. If the Aussie really wanted to move past that 80 level, it would have but it hasn’t so far.
We expect the gap to close back down today with a slight chance of a stop run towards buy stops around 74.15 cents.
USDJPY is aimless at the moment at 113.60 yen. Be mindful of orders around 113.80 and a wider cluster of bids between 113.30-40 that we saw from last week.
Have a good week ahead!
#TradeAtYourOwnRisk but trade with #Mocaz and #RealTraderCommunity.