Crude Oil - Bias turning bullishIraq's Oil Minister gave Crude a boost yesterday. With a close above 66.00, Crude looks poised
for further gains.
Fxrenew
S&P500 - Classic Market StructureA good example of classic Market Type transitions on the SP500.
We have just broken into a new bull market type, so shorts beware!
BTPs at Key Resistance Italian politicians are attempting to calm the markets.
Today this seems to be working, and driving risk-on.
Eyes on the key levels.
EurUsd - Long bias remains in playThe markets are expecting a hawkish hold from the ECB this week.
We might get a "buy the rumour/sell the fact" kind of play
ahead of the meeting.
Dow Jones - Bias Shifts LongAhead of key market moving events this week, participants are buying risk.
While this may change, the current line of least resistance is up.
CAD Employment Due Cad employment is due in 10 mins, with the market expecting +15K vs -1.1K previous.
Clients have been alerted to the NewsFlow trade potential.
GBPUSD - Caution ahead of Brexit BillOur thoughts on GBP ahead of next week's Brexit Bill amendment vote.
Caution is advised.
AudJpy - Risk-off environment keeps bias shortAUDJPY has reached our 1st Target at 83.00 on continued risk-aversion this morning.
Short-term agendas will be protecting profits, but there is no sign of exhaustion yet.
Dax - Bias flipping to shortPre-G7 jitters are starting to drag Jpy crosses and equities lower.
With no sign that the deterioration is ending, the outlook for Friday is bearish on the Dax.
AudJpy - Potential counter-trend trade Markets are preparing for a tough G7 meeting since Trump has been tweeting against the US's former allies (Canada, Europe, the World...).
Trump will also be leaving the G7 early (goes to show how much of a negotiator he is).
Jpy crosses and equities are weak going into the Eurex Open. We suspect further losses are possible.
Nasdaq - Profit taking and risk aversion shift momentumAhead of the G7 meeting (which is shaping up to be confrontational) traders seem to have reduced longs
on equities and there is a tad of risk aversion creeping into the market as Jpy crosses are lower as well.
From a technical perspective, 7220s/previous key high have been rejected. Tomorrow we may see
some counter-trend possibilities.
BTP - Bearish Bias ContinuesAfter another negative close, stops can be trailed to 93.00 looking for 90.00 as a first target.
Keep an eye on the Italian political agenda and on risk aversion which seems to be creeping in.
Nasdaq - Bullish bias intact, trail stopsFinancial markets are in risk-on mode with both US and Asian equity markets advancing. This positive sentiment might be dented into the weekend by the G7 meeting (where Trump's trade policies will likely be debated), but for now, all is well.
BTP - Bearish Momentum Back in PlayYesterday we expected the Italian 10yr to break back through recent supports, after Conte's initial proposals on immigration, taxes, welfare seem to imply a decisive clash with Brussels. These measures would be good for the population, but EU will not allow them.
Further downside is expected and 90.00 is the first target.
BTPs - Downside Open for BusinessThe Italian Government has started it's fight against Brussels.
BTPs are responding and we may see further downside today.
Nasdaq - Long Bias in Play, Trail StopsThe tech sector continues to outperform.
While superficial reasons don't do this trend justice, we may speculate
that it has to do with flows exiting Europe (where political issues and
internal problems are causing havoc) to the USA (where companies are
prone to benefit from Tax cuts and the political situation is more stable).
Italian 10Yr - Supports being PressuredConte's League/MS5 Government would win a vote of confidence today.
A clash with Brussels is only a matter of time. Markets a little nervous.
A breach of key supports would open up the downside again.
Crude Oil - Short Bias IntactOur bearish call on Crude Oil is being proven correct as prices push through
yesterday's lows and head towards 64.00.
Immediate resistance is 65.00/20 zone.
AudUsd - Testing Support Levels AudUsd currently pulling back, looking for support.
Here are some levels to watch.
Nasdaq Continues it's AscentUS stocks continue to shrug off trade fears for the time being.
Nasdaq is the leader and is continuing it's ascent.
Trail stops appropriately, and hold for further gains.
DXY - Momentum neutral within broader uptrendTrading the USD will prove tricky in current conditions.
DXY is looking for direction within it's current 93.75-94.50 range, despite being in a broader uptrend.
Traders beware.
GBPUSD - Attempting to chance bias?There are no fundamental drivers at play yet, but GBP seems like it's trying to find a base.
One for the watchlist, that may become interesting as the week progresses.
EURAUD - Bearish Bias in PlayWe're back on EurAud shorts as fundamental developments seems to favour Aussie strength.
We are currently transacting 5300/20 support zone, so our preferred stance is to use pullbacks
to get aboard for a move towards 5250 initially.
