Protective asset time
The media reported that China is questioning a long-term trade deal with the United States. Let me remind you that the last few days of the market sentiment were exactly the opposite – the majority of traders and investors expected to reach an agreement and, as a consequence, to reduce the risks associated with the slowdown in the global economy. As a result, we are seeing an increase in demand for so-called protective assets.
After the above information appeared in the media, the activity of JPY buyers and, as a consequence, the sellers of USD/JPY currency pair increased. Of course, we are not talking about the collapse of the pair’s quotes. At the time of writing, the pair corrected by 45 points. Note that the sellers did not overcome the support at 108.20. As a consequence, there is still a risk of a resumption of growth, including against the background of strengthening of USD.
Breaking through the above support will open the way to 107.80 and further to 107.50.
The situation is similar for this currency pair – we see a moderate weakening of quotations, but active sales in the market are no longer advisable, as sellers are close to the important technical support at 0.9850.
Only a stronger weakening of the U.S. dollar will allow us to expect a breakthrough of the support and, as a consequence, a further decline of the pair to 0.9800.
Of course, gold also serves as a protective asset, so we are seeing quite a strong rise in price. At the time of writing, the price was above $1508 per ounce, but even in this case, active purchases are no longer advisable. The potential for upward movement has been almost exhausted, and the technical resistance level of 1510 is already close enough.
Taking into account all this, traders and investors can fix a part of profit on long positions on gold, opened at the beginning of this week.
The above overview is not a direct guide to action, but only a recommendation.
More information about trading from price levels you can learn in the training course “Trade Position Management”, the author of which is Roman Shevchenko.
Want to be a successful trader? We present to your attention “Complex package for trading – FIBOX”! The set includes a training course, a trading assistant and a trading account with FIBO Group. Learn more! FIBOX 300