Daily Alert – Wednesday 23rd September 2020: GOLD is the big mover so far this week
At the week’s mid-point, GOLD has broken down through support and keeps going. So far we see the precious metal falling by almost USD80/oz which is heading towards three times the daily ATR.
US equities having recovered Monday’s losses. WTI is stuck to resistance around USD40/bbl. In the currency markets the big movers are JPY and USD (up) and AUD (down). The first two are being driven in large part by sentiment and the AUD by central bank commentary on Monday, a Westpac rate reduction prediction on Tuesday and a miss on Retail Sales today.
I took AUDJPY short on Monday at the close. The essence of this trade is JPY strength but the AUD news flow mentioned above has really helped this trade. So far it is 2x risk in the money. However, I do notice that the JPY is moving slightly down today so I will close half the trade now to bank some profit.
I’ll be back on Friday.
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