Here's the second update to the 11 pairs I found in the morning watchlist, but before we go into that lets cover whats important in the news this afternoon.
Focus in the markets will remain on Brexit as Prime Minister May is due to meet with her cabinet at 15:00 CET. In this meeting they are due to discuss the draft Brexit agreement reached with the EU.
Now here's whats important with this meeting:
If the cabinet agrees with the agreement, then it will be passed on to the House of Commons where the real test will be.
A possible EU summit on Brexit will be held on the 25th of November and the vote in House of Commons may be as early as 10 December.
Markets need more certainty before we see higher movement
In terms of data it is expected that US inflation will be unchanged at a rate of 2.2% y/y.
Inflation has edged lower in recent months despite higher wage growth. Fed Chair Jerome Powell is due to speak overnight, where focus will be on whether the Fed will continue its hiking cycle despite recent market turmoil.
The pair remains bearish as long as it holds below the resistance of 1.1310. We've made some returns shorting the pair, but currently it is recovering its losses. I am in "wait and see how it reacts" mode before I either short it or long it.
We'll just have to wait and see.
Below is the 30min chart. The green levels are possible profit areas if selling continues.
The pair is preparing for a bigger move, I believe to the downside, it seems like something big might be cooking and I say that after a review of Gold and Silver, which in sense follow each other as they act as safeness assets.
As you can see something is cooking because of the contraction of price (blue triangle), price can either go up or down from here. (and this is NOT a valid H&S yet)
The head and shoulders remains, so my view is that the AUD will weaken, as two separate pairs are indicating to me that the AUD should be weak.
Indications are good that the pair will continue lower. By reviewing the 4H chart you will find the confirmed H&S.
It still remains in the rage of 1.00450 and 1.01690. I don't like to touch this pair much... but for those of you who like to buy and sell and asset and earn, this one looks good.
The pair is trying to retest the broken trendline and it should do some successfully.. what happens after that we don't know. We will have to wait and see.
This hottie still remains bullish and I am still in the buy position.
The pair still looks bullish. No changes.
The pair still looks bearish, which makes me think that something might be cooking with the CAD.
Waiting to buy this one, but need a little more time.
Just like Gold, I am waiting to long this.