Trading plan for 08/11/2018
On Wall Street a definite continuation of the rebound, under which the contract for the SP500 recovered 2800 points. The price of oil remains in the vicinity of months-long mines established yesterday and lying around 20 percent. below the long-term peaks of early October.
The dollar in the second part of yesterday’s session made up for the morning losses and at night it entered the consolidation phase. EUR / USD is at 1.1435 and yesterday’s maxima are 1.15. USD / JPY from around 113.00 rebounded to 113.80, or Intraday high from Wednesday’s Asian session.
Indexes on Wall Street have increased over 2% and Nasdaq over 3%. The contract for the SP500 was approaching 2820 points and the summit of mid-October. Asia is also green, but the scale of increases is in most cases much more modest, by almost 2%. Nikkei225 is growing but, for example, the Chinese indices are close to the bar.
After yesterday’s data on oil inventories (the seventh consecutive increase, by a total of over 35 million barrels, accompanied by the highest extraction in history – 11.6 million b / d), WTI oil fell to USD 61 and the market was not able to return over 62 USD on the Asian session. An ounce of gold is valued at 1225 USD. Among the soft commodities, medium-term maxima of the cocoa price should be recorded in the area of USD 2,400 per ton and strong, around 2% rise in the coffee price.
On Thursday, the 8th of November, the event calendar is light in important data releases. The event of the day is the FOMC Interest Rate Decision and Rate Statement, but before that, the global investors should keep an eye on German and French Trade Balance data, Canadian New Housing Price Index data and Unemployment Claims data from the US. There are two speeches scheduled for today from the member of the Executive Board of the ECB Benoit Coeure and SNB Member of the Governing Board Andrea Maechler.
EUR/USD analysis for 08/11/2018:
Today’s German and French Trade Balance data might be interesting data release. The difference between the value of exports and imports in Germany. Trade Balance is one of the biggest components of Germany ‘s Balance of Payment. As Germany is Europe’s largest economy and given Germany’s export-oriented economy, trade data can give critical insight into pressures on the value of the Euro.
Let’s now take a look at the EUR/USD technical picture at the H4 time frame. The market reversed after reaching the level of 1.1500 and now is trading below the resistance zone of 1.1442 – 1.1432 again. Please notice, the price is still trading inside of the channel, but if the market will not be supported around the level of 1.1400, it might fall out of the channel and continue the sell-off towards the level of 1.1360 or below.