US Brief: top Trade Setups in Forex - Calm Before Storm, Trump in Focus!


The U.S. greenback is traded mostly lower on Monday, following President Donald Trump comments that trade talks with China were progressing forward "very nicely." Still, the United States would only perform a settlement with Beijing if it were best for the U.S.

The market sentiment ignored speculations that the United States President Donald Trump is ready to drop tariff on the European Union automobiles along with the positive conversation between the United States and French leaders.

The United States ten-year treasury yields dropped nearly two basis points (bps) to 1.91% due to the extended weekend stopped bond trading on Monday. Moreover, Wall Street marked mild losses, and the S&P 500 Futures follow suit while portraying the market’s risk-off.

Looking forward, the markets will likely keep their eyes on fresh clues from the United States and China trade front and global politics in the wake of a lack of significant data/events up for publishing on the economic calendar during the Asian session.

 

XAU/USD -Safe Haven Fades Ahead of U.S. China Trade Talks 

Gold prices slipped on Tuesday to trade near a 3-month low and now its trades at $1,452.75. The bearish trend it showed today was restricted amid a shortage of major economic events, while trading volume was coiled as the bond market, and many banks remained closed in the wake of the Veterans Day in the U.S.

Traders will listen from eight Federal Reserve executives who are addressing this week. The Fed Chairman Jerome Powell intimated beforehand that the U.S. central bank’s third-straight rate decrease of October is likely to be it's last 2019. 

On the economic aspect, the U.S. will deliver its October CPI (consumer price index) on Wednesday. Besides that, the U.S. retail sales and industrial production figures are scheduled to come out on Friday.

XAU/USD

 

XAU/USD - Daily Technical Levels

 Support 

 Pivot Point 

 Resistance 

1472.82

1490.3

1501.14

1461.98

1518.62

1433.66

1546.93

 

Gold - XAU/USD- Daily Trade Sentiment

The fresh updates on the U.S. China trade war are holding the metal prices on a transit. Risk desire rose to push the bearish bias in gold. The bearish attitude in gold still seems stable below 1,458. The bullish breakout of 1,458 can direct to gold prices towards 1,464. On the lower front, a bearish violation of 1,454 can point gold towards 1,448 support region.

EUR/USD - Dollar Gains over Eased Trade War 

Following a fresh round of weakness, EUR/USD is grabbing a bullish bias from a support level at 1.1016. The pair offers a near-term bearish inclination as a technical break during the end of last week initiated a double top. Nevertheless, we could see a bullish momentum from here as price action shows that support is being considered.

An improvement in risk appetite counts the single currency euro as of late, and variations in the stock market and bond markets will serve to resume pushing the pair.

Later in the day, U.S. President Trump will be delivering a speech at the Economic Club of New York. There are high anticipations for an update on how the trade discussions with China are advancing.

EURUSD

 

EUR/USD- Daily Technical Levels

 Support 

 Pivot Point 

 Resistance 

1.1006

1.1031

1.1045

1.0992

1.107

1.0953

1.1108

 

EUR/USD - Daily Trade Sentiment

The EUR/USD is consolidating above strong support 1.1020 level prolonging by, and closing of bullish candle accompanied by a bearish bias which is now indicating prospects of a bullish turn around in the EUR/USD

On the higher side, the next resistance waits at 1.1050 and 1.1080 succeeding on. Nevertheless, the bearish breakout of 1.1010 should also be focused on aim1.0990.

 

AUD/USD – Fibonacci Supports 

The AUD/USD currency pair consolidate in the narrow range of 0.6835 and 0.6854, the pair hit the high of 0.6850 and hit the 9-month lows near the 0.6835 range. As of writing, there was no significant gain in the AUD/USD currency pair despite the definite number of Australian business sentiment data released.

By the way, the Australian Dollar failed to maintain the bullish track above the 100-DMA barrier; the pair is currently trading at 0.6846, which was recovered after the positive Australian NAB Business Survey released earlier today at 0030 GMT. Australia NAB Business Survey unexpectedly improves in October.

October month Business Confidence and Business Conditions from National Bank of Australia (NAB) cross marked forecast for unchanged figures of 0 and 2 to 2 and 3 respectively.

Notably, the bearish trend in the AUD/USD currency pair happened mainly due to greenback strength across the board. That was due to the uncertainty surrounding the United States and China trade deal, and Hong Kong's civil protest worries resurged the demand for safety, so that's why the market was favoring the US currency. Moreover, the US Dollar index recovery from the low of 98.13 and rose 3-weeks high of 98.40.

The AUD/USD currency pair also followed the fresh selling seen in its OZ counterpart, the Kiwi, after the RBNZ survey showed New Zealand’s inflation expectations dropping further in the 4th-quarter of 2019. Besides this, growing industry expectations that the RBA will likely announce a quantitative rate cut next year also could weight on Aussie

Looking forward, the markets will likely keep their eyes on fresh clues from the United States and China trade front and global politics in the wake of a lack of significant data/events up for publishing on the economic calendar during the Asian session. 

Whereas, comments from the Federal Reserve (Fed) policymakers and the United States (US) President Donald Trump, at the Economic Club lunch in New York, will be under the focus and will be closely followed during the latter part of the day.

AUD/USD

 

AUD/USD - Technical Levels 

 Support 

 Pivot Point 

 Resistance 

0.6865

0.6885

0.692

0.6829

0.694

0.6774

0.6995

 

AUD/USD - Daily Trade Sentiment

The primary trend is bullish as per the daily swing chart. Nevertheless, the current trend of the AUD/USD has been bearish since the violation of 50% and 61.8% Fibonacci retracement level of 0.6850. 

The closing of bearish engulfing candle below 0.6850 level is suggesting the chances of a bearish reversal in the AUD/USD. 

Besides, the MACD and RSI are also indicating a bearish trend in the AUD/USD. The Aussie may target 0.6820 and even 0.6805 later in the day. 

 


 

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