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- Varchev Finance: Trading day in one post – 31.08.2018
Varchev Finance: Trading day in one post - 31.08.2018
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Loading...Asian Stock Market - Expected, Asian markets declined after Donald Trump expressed his support for $200b new China tariffs. Despite the collapse of China's markets, the Nikkei 225 has a slight growth of 0.05%. Hang Seng was down 0.91% and Shenzhen -0.20%. In Australia ASX fell by -0.28%. I expect the negativity to be maintained next week, amid the new tariffs that are expected to be launched early next week.
FX Market - Asian traders chose to sell high-risk currencies, such as AUD and NZD, in favor of JPY, following Trump's request to impose new $200b. The latest USD upward momentum sent NZD/USD back to the downward channel and the current Price Action clearly shows who is in charge. In the last 12 hours, the price managed to break the short-term upward channel and go back to the mid-term downward, below 23.6% Fibonacci correction and 50SMA. In the break test, we observed a certain volatility in the pair, but after the bearded pin bar and the current downward pulse that activated it, I think short positions are the more appropriate option. In addition, the price and DeMarker form a divergence that supports short-a. If we look at DeMarker we will notice that it signals a potential upward impulse. It is then best to position more conservative traders. Entry from current levels is risky, but nevertheless gives a good risk factor - return. Sequential counts 4th below, from possible 13 - downward movement is still in its infancy. Today, the focus will be on the EUR, as at 09:00 we expect the retail sales data from Germany, and later on at 12:00 PM CPI and unemployment rate in the euro area. I expect the JPY to receive end-of-day support in view of the bad fundament of stock markets in China.
Commodity Market - Following Trump's comments that he expects a positive outcome of the NAFTA deal by the end of the week, oil is on the rise. The comments from Canada are also on the way to a deal that turned out to be very positive for oil. As far as gold is concerned, the metal continues to trade in the mid-term downward channel and near the bottoms recorded over the previous three weeks.
European Stock Market: Today European stocks will most likely reflect Trump's comments that he wants to impose a new $ 200bn. import tariffs against China, and the President's refusal to accept the deal proposed by the EU. The proposal was aimed at completely abolishing customs duties on car imports in both countries. As a result, today I expect the automotive sector to experience a serious decline.
US stock market - US markets were on the way to mark another series of growths that was interrupted by the news of the next week's imposition of new US duties on Chinese imported goods for $ 200bn. Dow fell by 0.53% or by 140 points to a level of $ 25987.06. The SP500 dropped 0.44% to $2901.13. The Nasdaq composite fell 0.26% to $ 8088.36.
Economic calendar for the European and US trading session
09:00 Germany - Retail sales
12:00 Eurozone - CPI
12:00 Eurozone - Unemployment rate
17:00 USA - Consumer Confidence of Michigan University
20:00 USA - Baker Hughes oil rig count
Trader Petar Milanov Read more:
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