Other than the RBA rate cut yesterday, we didn’t have serious economic news to look forward to other than GDT index which was released in the New York Session printing a considerably improved value of 6.6% rise and rising after two dismissive auction runs. In my previous post I stated how commodity prices will rise in the medium to long term run as long as we continue to toy about any possibility of a rate hike by the Feds. Today, in the New York session we shall have the ADP non-Farm employment change expected to be slightly changed at 171k from last month’s 172k, then we shall also look at both the Crude Oil Inventories expected to be at -1.6M from last week’s 1.7M and the ISM non-Manufacturing PMI where some contraction is expected to 56.0 from 56.5. Remember the ISM Manufacturing PMI was released on Monday and it came in lower at 52.6 against the expected 53.2. Keep an eye at these today at 1400HRS.
To the charts and the daily chart specifically, price action failed to penetrate through the 38.2 Yearly Fibonacci level resistance zone and as anticipated, any failure for price break away in this zone will mean there will be a retracement as this was our resistance zone. 0.723-0.730 and this is clearly visible in the 4HR chart. So, with these developments, today’s trading plan will be as follows:
Sell Limit: 0.72
TP: Recommended a risk reward ratio of 1:2 or 3, so target 100-150 pips from here
Have a pipful day.