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    Morning Report – Thursday 16th May




    U.S. Stocks Rise on Signs of Easing Trade Tensions: Markets Wrap

    U.S. stocks rebounded for second day on signs the Trump administration is working toward easing tensions with trade partners. Treasuries advanced.

    The S&P 500’s two-day gain was the biggest in more than a month after Bloomberg reported President Donald Trump would postpone by up to six months a decision on car tariffs that was due by Saturday. The benchmark is still down over 3% since the the trade war with China flared last week. American and German carmakers jumped on the news. Treasury Secretary Steven Mnuchin also said negotiators were close to a deal with Mexico and Canada on removing metals tariffs, helping to boost indexes (Reuters).

    Euro boosted by reports auto tariffs will be delayed

    The euro retraced earlier losses against the U.S. dollar on Wednesday after administration officials said that U.S. President Donald Trump is expected to delay a decision on tariffs on imported cars and parts by up to six months.

    “The assumption is that that’s going to delay any tariffs on European autos, which has been the issue hanging over the broader trade talks,” said Shaun Osborne, chief FX strategist at Scotiabank in Toronto.
    “If there are European rules that are starving a continent, these rules must be changed,” Salvini said on Wednesday, a day after he said the government was ready to breach EU rules that seek to limit budget deficits and curb excessive debt.

    “There are definitely concerns heading into the European elections next week that there could be some more rhetoric against the EU,” said Erik Nelson, a currency strategist at Wells Fargo in New York (Reuters).

    AUD/JPY technical analysis: 50% Fibo. can trigger pullback amid oversold RSI levels

    AUD/JPY seesaws near 75.90 ahead of Australian employment data on early Thursday.

    The 50% Fibonacci retracement level of January to April upside, near 75.80, acts as immediate support for the pair while 14-day relative strength index (RSI) signals oversold conditions.

    Given the nearness to important support and RSI levels, chances of the pair’s pullback to 76.30 are much brighter. However, a month-old descending trend-line at 76.75 could question further upside.

    If prices manage to rise past-76.75, buyers’ can again aim for 77.45/50 resistance-area comprising multiple lows marked during January and March.

    Meanwhile, a downside break of 75.80 highlights January 04 low near 75.25 as the key level ahead of shifting market attention to July 2016 bottom surrounding 74.50.

    Additionally, pair’s sustained declines under 74.50 might not refrain from visiting 2016 low near 72.40 (FXStreet).


    Below are Trading Central's Intraday preference recommendations. Short (SELL) positions and long (BUY) positions have two targets issued which may be used as take profit levels. Above or below a certain figure indicates the pivot level which may be used as a level for stop loss.

    Wheat 30 Minute – The upside prevails as long as 452.50 is support.

    This is general advice only and does not take into account your personal circumstances. “It is the Policy of ForexCT to recommend the use of stop/loss function to reduce risk of significant losses to customers

    EURUSD 30 Minute – Long positions above 1.1180 with targets at 1.1230 & 1.1245.
    EURJPY 30 Minute – The downside prevails as long as 122.60 is resistance.
    OIL Daily – Long positions above 61.55 with targets at 62.30 & 63.05.
    USDCHF Daily – Long positions above 1.0070 with targets at 1.0110 & 1.0125.
    SP500 Weekly – Long positions above 2785.00 with targets at 2954.00 & 3025.00
    NASDAQ Weekly – Long positions above 7200.00 with targets at 7842.00 & 8150.00
    COPPER Weekly – Long positions above 2.6300 with targets at 3.0100 & 3.1500.

    This is general advice only and does not take into account your personal circumstances. “It is the Policy of ForexCT to recommend the use of stop/loss function to reduce risk of significant losses to customers.

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    Risk Warning

    Trading FX and CFDs involves a substantial degree of risk and should only be undertaken with risk capital. Please consider our PDS and FSG before trading with us. A copy can be found on our website Forex Capital Trading Pty Ltd provides general advice that does not take into account your objectives, financial situation or needs. Investors do not own or have rights to underlying assets. Forex Capital Trading Pty Ltd is regulated by ASIC (AFSL 306400), ABN (69119086270). Forex Capital Trading Pty Ltd’s AFS license and Australian regulation only applies to the financial services being provided in Australia only.

    Posted: May 16, 2019 | 7:49 AM