Overall there is strength in the NZD and GBP, with minor strength in the AUD, and weakness in the EUR and CAD, with minor weakness in the JPY and CHF.
Oil prices fell 1% on Monday in Asia after China reported weakening imports and exports in the world's second-largest crude oil consumer.
Gold created an inverted hammer on Friday, making today's close is pivotal. Acceptance below Friday's low of $1,286 would validate signs of bullish exhaustion near $1,300 and could yield a corrective pullback to $1,260.
USD rose against most of its peers on Monday, although heightened investor expectations that the Federal Reserve will not raise rates this year are most likely to cap the greenback's gains. Media reported that Brexit date may be postponed after UK senior ministers privately admitted more time is needed, even if Prime Minister Theresa May’s deal gains the support of parliament. Ver the weekend, opposition Labour leader Jeremy Corbyn said a no-confidence against May is “coming soon”.
EUR/USD is holding on the downside after Friday’s downward acceleration. RSI is locating at the selling zone between 30 and 50, confirming a bearish outlook. Hence, below 1.1490, expect another down-leg with targets at 1.1435 and 1.1410 in extension. Alternatively, crossing above 1.1490 would call for a technical rebound with 1.1515 and 1.1540 as targets.
On the data slate there’s Euro-Zone Industrial Production and US 3-and 6-Month Bill Auctions.
Today Trading Plan
BUY EUR/USD @ 1.1450 OR BETTER – STOP @ 1.1400 – TARGET @ 1.1610
BUY GBP/USD @ 1.2830 OR BETTER – STOP @ 1.2760 - TARGET @ 1.2965
SELL USD/JPY @ 108.00 OR BETTER – STOP @ 108.30 – TARGET @ 107.35
BUY CL0219 @ 51.00 OR BETTER – STOP @ 50.40 – TARGET @ 52.25
BUY AUD/USD @ 0.7150 OR BETTER – STOP @ 0.7100 – TARGET @ 0.7210
BUY XAU @ 1290 OR BETTER – STOP @ 1285 – TARGET @ 1305
BUY XAG @ 15.60 OR BETTER – STOP @ 15.10 – TARGET @ 16.00
THE ABOVE BRIEF IS MY PERSONAL OPINION AND DOES NOT CONSTITUTE ANY PROMISES OR GUARANTEES OF PROFITS. TRADING IN CURRENCIES AND COMMODITIES ARE HIGH RISKS. YOU SHOULD NOT TAKE ANY MATERIAL POSTED AS RECOMMENDATION.
