EUR / USD - the slow development of the correction to $1.1430
The beginning of a new trading week is taking place on the background of corrective pressure in this market. In essence, the situation in this market has not changed much in the last four days. We are seeing a sluggish correction. European currency adjusted to the level $1.1465-$1.1450, where the closest support level goes and where the downward movement slowed down. Further developments will depend on the sustainability of this zone, which extends to the level of 1.1430. This is a strong bullish defense area, and it is here that we expect the bullish volume to return to the market.
Trading recommendations - longs in the area 1.1465-1.1430
GBP / USD - we expect test support 1.2770-1.2800
The breakthrough of the market level around 1.2780-1.2800 led the British currency quotes up in the area of two-month highs -1.2925. It is difficult to believe that this is a real market breakthrough; rather, it might be shorts liquidation ahead of important news event and higher volatility. If so we can see the continuation of negative dynamics. However, the fact remains that the market has consolidated above 1.2800 and now it is the closest market support. Resistance is now a zone of recent highs in the 1.2920 area. Given today's events, we recommend to stay out of the market
Trading recommendations - out of the market
Gold consolidates within a narrow range of 1295-1285
The precious metal market continues to trade within a tight range $1285-$1295. Gold positively opened a new trading week; on Monday, quotes were able to hold above $1285 and even move higher, this was perceived by the market as a positive sign. This price action was due to increased fears on a global economic slowdown after the release of weak data on Chinese exports / imports.
Current market pattern resembles the “flag” figure - and this is a continuation figure. Of course, the round mark 1300 has not yet been really tested, and we mentioned earlier that 1300 is a strong and long-term level. The market can spend below this level for quite a long time, and longs here seem somewhat quite dangerous (1295-1285). Before a decisive assault of $ 1,300, at a minimum, the market would want to trigger a stop-orders located under $ 1285, which means a quotes drop to $ 1277 area. In our opinion, at least in this area it is necessary to focus on the longs and even lower down to $ 1263. As for Brexit, we do not think that today's events can have a significant impact on gold, maybe in terms of increased volatility. The gold market is now influenced by other factors, and they are of more fundamental in nature.
Trading recommendations - limit orders in the area of 1277 and 1270
AUD / USD has come upon the first real resistance 0.7200
Weaker USD dollar and the positive results of the US-China trade negotiations supported the Australian dollar last week. However, weak economic data for China at the beginning of this week put pressure on the Australian dollar. The Australian dollar has strengthened to the area 0.7200, where a strong zone of resistance is located. Breaking through this mark will send quotes higher up to the area 0.7330, to two-month highs. The nearest support is located in the market area 0.7165. Volatility in this market remains sufficient, so we must be careful with this market.
Trading recommendations - cautious longs in the area 0.7165-0.7145