Trump has done it again…
The main focus during today’s Asian session has been the comments made by President Trump yesterday regarding his doubt whether the summit between him and Kim would still take place. He also stated that he was very unhappy with the way the China trade talk has progressed. All of this has placed the market in a very risk averse tone.
As a result, the jpy and chf has gained considerable strength with the jpy crosses dropping quite substantially. Also, the latest release of the German and French PMI figures has placed a lot of renewed pressure on the EUR with all the EUR pairs down across the board.
Our pair selection for today:
Given the recent EUR weakness and JPY strength we have chosen the EURJPY as the highest probability pair to look for opportunities.
EURJPY – M30
EURJPY – H4
The pair has already made considerable moves during the Asian and European session. For this reason, we will not want to be buying at the lows and would prefer to see a pullback to recent resistance levels (as seen on the charts). This trade idea is only valid in our opinion as long as the risk averse tone stays in the market and the EUR stays under pressure. Also, watch out for the important FOMC minutes being release during the NY session.
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Risk Disclaimer: Forex Trading carries a high level of risk. It is possible for traders to lose entire trading accounts if they do not know what they are doing. This post is not an enticement, signal or recommendation to buy or sell any financial instruments. All of the information in this post should only be considered as general market commentary and should never be used as trading or financial advice.
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