Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
USD/SGD: a short-term idea
2019-11-11 • Updated
SELL 1.3628; TP 1.3598; SL 1.3638
Looking for a way to bet on the weaker USD, we have considered several currency pairs but the one that came to our attention was USD/SGD.
The pair has already made a significant decline this week and is now testing the 50-week MA at 1.3650. Still, it does have the potential to move more. On D1, it’s trying to get below the 50-day MA at 1.3630 and 50% Fibo of the March-May advance. If it succeeds, the targets will lie at 61.8% Fibo (1.3597) and 100-day MA (1.3585).
A return at least above 1.3665 is needed to improve the short-term technical picture.
As you must already know, the direction of Gold is mainly dependent on the Price action of DXY (US Dollar index). So first, we take a look at the US Dollar index.
On January 12, the Bureau of Statistics will publish the Consumer Price Index (CPI) figures, a key index for determining interest rates. While we await the release, experts forecast a decline in the CPI data, a hint at weaker Dollar values in the global markets.
This week, there are a few high-probability trade ideas I'd like to recommend to you. Trading these setups, be sure to implement a proper risk management approach.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?