Be careful when you read mainstream market news headlines. It’s mostly bullshit written by reporters with no skin in the game.
For example, one headline says, “Oil prices rise after 6-percent plunge”.
Sure, this was on the back of an overnight report by the American Petroleum Institute showing an unexpected drop in US commercial crude inventories in the week ending 16 November. Tonight’s inventory report from the US EIA is expected to support the sentiment.
Also in the background is talk that OPEC is pushing for supply cuts to stem a repeat of the supply glut of 2014.
But here are the facts: everyone is also expecting further weakness in China and the US, hitting earnings outlooks for businesses worldwide.
Coupled with US interest rate hikes (because the Fed strangely thinks this won’t make it worse) and weak equities, the only other safe haven appears to be the US dollar.
EURUSD attempted to make for the 1.1500 resistance before we heard of a late build-up of orders between 1.1470-1.1500. The euro is now back down in aimless trade looking for direction around 1.1380 dollars.
GBPUSD resistance held firm at 1.2855. The pound is now ranging lower using orders around 1.2815 as a pivot.
AUDUSD retraced from earlier highs to 72.70 cents and is now ranging around a pivot at 72.35 cents.
The USD bids we mentioned at 112.35 yen held strong for now. The dollar is presently stalling at 112.90 but we’re not seeing any further resistance till 113.40 yen.
We hope those of you who observed yesterday’s holiday had a good break!
As usual, #TradeAtYourOwnRisk with #Mocaz and #RealTraderCommunity.