Watching for reversal on WTI and Brent Crude? Forex trading USD/JPY gap [Video]
|In today’s Market Outlook, let’s take a look at Forex Trading on USDJPY, GBPUSD, NZDUSD, WTI Crude Oil.
Yesterday’s OPEC meeting concluded with production increases but not as severe as analysts thought.
They fear an oil supply glut, which helps no one.
So we see price action returning to this key level so we may look for signs of a reversal back to the downside or a break higher.
The daily chart shows us where we were last week and the decline since June.
Almost all USD pairs opened with a gap this morning with USDJPY being the most notable.
We see the stochastic oscillator is overbought right now but we might want to wait for confirmation before going short.
We note that other pairs like AUDUSD and NZDUSD have already filled the gap but some like GBPUSD are consolidating in a very ragged range.
Last time we warned you that we may not see a Non-Farm Payrolls number with the government shutdown and, that’s exactly what happened.
It is now scheduled for this Friday but let’s see.
We also have a New Zealand Interest rate decision on Wednesday and analysts are predicting a 25 basis point drop.
If we look at the big picture, we see that NZD is strong against every other currency so we could have an opportunity for a weaker NZD.
That’s all for now.
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