The financial markets opened the new week of trading with most transactions in favor of safer harbors.
The greenback was on the defensive against most currencies, as risk aversion intensified due to increasing concerns over renewed tensions in the US-China Trade negotiations. Most dollar-denominated pairs, like EUR/USD & AUD/USD, were sustained for most of the session. However, we’re starting to see signs of softness and upside limitation, as investors wait in anticipation of the US Non-Manufacturing ISM PMI, which is expected to show that the economy expanded at a value of 55.5.
During the Early European Morning, newswires released the Eurozone Markit Services PMI, which reported a reading at 53.20, which was slightly below economist’s expectations of 53.30. German Services PMI also expanded below its forecasts of 55.40, coming in nearly a point lower at 54.50. Although these numbers under-performed analyst’s forecasts, it still revealed that the European economies are still expanding and this kept the single currency afloat in the midst of flight-to-safety trading. Safe haven assets were in demand for most of the European and early US Trading sessions, and we’re continuing to see a handover of sentiment into the late US afternoon.
For most of the webinar, we reviewed price action in EUR/USD, EUR/CAD, GBP/CHF, USD/CAD, and EUR/JPY to identify technical setups that were forming in the market for trade entry.
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Marvin Perry has been an active trader within the Forex market since 2010. He attended the University of Illinois in Urbana/Champaign, and graduated in 2002 with a double major in Cell and Structural Biology and Chemistry. He currently serves as an FX instructor & Quantitative Analyst for the Forex Anatomy Private Trading Community called "The Lab", where he conducts live weekly trading webinars & instruction on Fundamental Analysis & Inter-Market Interpretations of dynamic asset classes and their influence on currencies.