Once again the main moves of the session were seen in Gold and WTI, which both moved lower in an otherwise uninspiring session while waiting on the signing of the US/China trade deal due on Wednesday. Although the charts looks a little mixed, it would appear that there is further downside potential for both Gold and Silver. Note however – as per the daily chart – that WTI will shortly run into decent support at the 200 DMA/100 DMA, which should see some decent buying interest.
Elsewhere, US$Jpy looks interesting after finally having broken the strong resistance at 109.70 to currently sit just short of 110.00. Further strong resistance lies at 110.20/40 (Descending trend/Fibo resistance) but above there we could see a strong run higher towards 112.40 (24 April 2019 high). Worth watching.
|1 Hour||Neutral – Turning Higher?||Bearish Divergence||Turning Higher?||Possible Basing Formation||Turning Neutral||Turning Neutral|
|4 Hour||Turning Higher||Possible Topping Formation||Turning Lower?||Neutral – Turning Lower?||Turning Lower||Neutral – Turning Higher?|
|1 Day||Neutral – Turning Lower?||Neutral||Neutral – Turning Lower?||Turning Neutral||Neutral – Turning Lower?||Down|
|1 Week||Neutral||Neutral||Turning Neutral||Neutral||Turning Neutral||Neutral – Turning Higher?|
|1 Hour||Turning Lower||Turning Higher||Neutral – Turning Higher?||Turning Neutral||Neutral||Turning Lower?|
|4 Hour||Turning Lower?||Turning Neutral||Neutral – Turning Lower?||Neutral||Neutral||Possible Basing Formation|
|1 Day||Turning Higher||Possible Topping Formation||Turning Higher?||Possible Topping Formation||Turning Lower?||Turning Lower|
|1 Week||Neutral – Turning Lower?||Up – Overbought||Turning Neutral||Bearish Divergence||Neutral – Turning Higher?||Neutral|
|1 Hour||Possible Topping Formation||Possible Topping Formation||Turning Higher||Turning Neutral||Turning Neutral||Neutral – Turning Lower?|
|4 Hour||Up||Turning Higher||Turning Lower?||Turning Higher||Turning Neutral||Turning Higher?|
|1 Day||Neutral – Turning Higher?||Neutral||Neutral||Turning Neutral||Neutral – Turning Higher?||Turning Higher|
|1 Week||Neutral||Possible Basing Formation||Turning Neutral||Neutral||Neutral||Turning Lower?|
Trend Table Explained:
Where a product is marked with consecutive red/green boxes for adjoining time frames, this suggests the possibility of either a short term (1hour/4 hour charts), a medium term (4 hour/daily charts) or a longer term (daily/weekly) trend may be forming or already underway
The shorter term (1+4 hour)) momentum indicators may also be aligned with the longer term charts, but equally likely, they will be pointing in the opposite direction, which may suggest a near-term buy or sell level , in the event of a pullback within the longer term trend. In other words, the short term charts will be showing a short-term bias that differs from the longer term trend. In order to find possible short-term trades, or to look for levels at which to enter the market hoping to take advantage of the longer term trend, this table should be used in conjunction with the Daily Outlook blog or the trading ideas on orchardforex.com. Use the support/resistance levels mentioned in the support/resistance table as a guide.
The boxes marked in blue means the chance of sideways consolidation, offering traders the opportunity to play a range trade strategy.
The trend tables are based on the direction of the oscillators for the various time frames, using a combination of MACDs, RSIs and Slow Stochastics.
Short term trade possibilities
Essentially, much the same as yesterday, and given the relative lack of economic activity over the next 24 hours – the US CPI excepted -, I suspect the Euro may continue be mostly trapped between the 100 DMA (blue)/200 DMA (pink),as per the chart, and would therefore look to trade the range with a tight SL on either side. Given that the topside resistance is close, the 200 HMA is at 1.1150, so use that as a guide to topside resistance.
Buy EurUsd @ 1.1065. SL @ 1.1040, TP @ 1.1140
Sell EurUsd @ 1.1155. SL @ 1.1175, TP @ 1.1065
Sell Gold @ 1560. SL @ 1575, TP @ 1525
Sell WTI @ 60.00. SL @ 61.50, TP @ 56.00