Daily Alert – Tuesday 5th October 2021: OPEC+ do nothing as meteor approaches US
Yesterday’s OPEC+ bunfight ended with a decision to do nothing. With the fear of a production increase taken off the table, oil breached resistance to the upside before the close on the daily chart. If that’s not a buy signal I do not know what is. I went long. So far so good: we are around 1x risk in the money. Stop to breakeven.
Over in Washington, President Joe Biden said the government is at risk of breaching the legal limit on its debt in two weeks and blamed the Republicans for what he described as a “meteor” heading their way.
Elsewhere, another Chinese property developer is struggling. Fantasia Holdings Group missed a bond repayment, adding to the Evergrande problem. Shares in Evergrande are currently suspended as we await details on a “major transaction.”
Later today we have ISM Services PMI in the US. Hopefully this report will boost the USD, allowing me to short EURUSD, as per the Trading Plan. In the video I discuss how I would enter this trade.
I’ll be back tomorrow.
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