December 9, 2022

Forex Solution

Learn To Trade Forex

Risk trades are making a stand

1 min read

These levels need to hold

The alamo

You don’t have to look hard to find big levels in markets at the moment.

A particular one to watch at the equity open is the Russell 2000. It’s been consolidating all year after a big runup coming out of covid but it’s in danger of breaking down today. We’re set for a 56-point decline at the open, which will break the April low.

Russell 2000

At the moment, we’re seeing some life in commodity currencies. I hopeĀ  this bounce lasts because the alternative is an ugly drop on the charts. Translating that to reality is an ugly and ongoing pandemic.

The spot where this happened first was in bonds and that’s going to be the first spot to turn towards a better future. US 10-year yields are down 8 bps to 1.22%, which fills in the February gap (call it 1.20% to be safe). That’s a spot that some in the bond market have been eying for weeks.

There’s a chance to make a stand here (and I think that’s the trade) but if we get closes below today and tomorrow, then it won’t be pretty. There are too many vulnerable charts.

S&P 500 futures are down 49 points, slightly off the lows.

Invest in yourself. See our forex education hub.




Source link

Copyright © All rights reserved. | Newsphere by AF themes.