|

Forex trading the Strait of Hormuz, Brent Crude Oil, rollercoaster ride [Video]

Welcome to today’s Market Blast.

Today, we will take a look at Forex Trading on EURGBP, GBPUSD, WTI and Brent Crude Oil.

It is extremely rare to see such volatility in any market, but we have it today in crude oil.

We all know why, as the intense oscillations in messages from the governments of the US and Iran are usually contrary, and any escalation or perceived escalation in the Iran war will drive price action higher.

Youtube preview

On the other side, any rumours or statements, true or not, regarding ceasefires, will see prices falling.

These volatile situations are where traders can take advantage, but you have to take risk management very seriously and be prepared to close your positions when contrary information comes out.

Also, the spread between WTI and Brent Crude Oil has narrowed to $9 from $12.

The White House is again today threatening to bomb Iran, as they clearly have no control over the Strait of Hormuz, and no obvious way forward.

Keep your ears and eyes open for news and opportunities.

We see an ascending triangle in GBPUSD with resistance at $1.36.

This is most likely the result of bad election results for the governing Labour Party last night.

We see bearish confluence in the Stochastic Oscillator, so we may get a pullback to support at any of these key levels.

The daily chart shows us some key levels of resistance above, but price action in what could be a rising wedge.

We see the exact opposite, on the EURGBP daily chart, for obvious reasons, with a descending triangle.

If we look at the 4-hour chart, we see a Sell opportunity in an obvious downtrend.

The one-hour chart tells a bullish story so, no matter where you go, wait for confirmation.

And I encourage you to check all GBP pairs.

Author

Brad Alexander

Brad Alexander

FX Large Limited

Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.

More from Brad Alexander
Share:

Editor's Picks

GBP/USD off highs, back to 1.3620

GBP/USD remains slightly on the defensive at the end of the week, receding to the low 1.3600s after hitting fresh tops past 1.3670 earlier in the day. Cable’s correction comes after two daily gains in a row and amid a tepid advance in the Greenback, while poor UK data also accompany the downside.

EUR/USD treads water below 1.1700

EUR/USD now trades with modest losses around 1.1670 following another unsuccessful atempt to advance past 1.1700 the figure in a convincing fashion. The pair’s decline follows a maginal rebound in the US Dollar as market participants continue to assess recent US data as well as developments from the US bond market.

Gold trims gains, recedes to the sub-$4,600 area

Gold rapidly leaves behind Thursday’s inconclusive price action and advances markedly on Friday, briefly surpassing the $4,600 mark per troy ounce to hit three-month peaks. Meanwhile, the precious metal’s solid performance comes despite marginal gains in the buck coupled with another day of rising US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP bulls accelerate rally amid rising ETF inflows

The cryptocurrency market remains bullish on Friday, led by Bitcoin’s surge above $77,000. Altcoins, including Ethereum and Ripple, mirror BTC’s positive outlook, trading near $2,400 and $1.35, respectively.

Week ahead – Fed’s Jackson Hole and Nvidia earnings to dictate markets

Kevin Warsh to make his Jackson Hole debut amid confusing messaging. But a major hawkish surprise unlikely after bond market intervention. Nvidia earnings to also determine market direction as stock rally cools.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.