The market is generally slow and even the deal struck over the weekend between the UK and the EU couldn’t spur the much needed volatility especially in the GBP pairs.
From the agreement, the UK and the EU allowed negotiations to proceed to the next stage where issues Trade agreements would be ironed out hopefully before end of 2018. Irrespective of what happens, a deal is necessary for the UK economy to overcome the recent challenges especially those related to industrial production, price pressure and labor conditions.
In other news, we have a new RBNZ chair. Adrian Orr will be taking over the RBNZ helm after Q1 2018. This guy is neither a bull nor a dove and now that the RBNZ is at such a critical stage of transitioning, leadership is needed.
We are yet to know what his position is about the state of the economy and if the current interest rates will remain as it even if the economy expands. Anyhow, if he proceeds according to the plans set by the coalition government, we anticipate the Kiwi to expand going forward.
Today, we shall trade Gold and look to buy some. Over-extension is rare in this commodity and today we have identified some under valuation after last week close. As noted in the daily chart, price action closed below the lower BB on Friday. In the 4HR chart, we have some higher highs accompanied by a stochastic buy signal turning from the oversold territory. If Gold corrects higher, we should aim for 200 points minimum.
We therefore trade as follows:
Buy Limit: $1240
Stop Loss: $1230
Take Profit: $1270
Have a good trading day