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Trading plan for December 4

By:
FBS
Published: Dec 4, 2018, 12:55 UTC

As the USD keeps sliding with the 10-year Treasury bond yield at its three-month lows, it boosts the price for gold. Currently, the price for the yellow metal is testing the resistance at 1,238

Trading plan for December 4

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The economic calendar for today brings us the opportunity to trade the British pound. The Bank of England Governor Mark Carney will testify about the Brexit Withdrawal Agreement before the Treasury Select Committee at 11:15 MT. If his speech contains hawkish comments, the GBP will be supported.

Also, at 17:00 we anticipate the speech by the Federal open market committee member Williams. His speech may bring the hope for the USD bulls.

Now let’s look at the technical side.

The weak USD could not help GBP/USD to move higher, as the pair was driven by the fresh Brexit uncertainties. If Mark Carney’s testimony supports the GBP, it can rise towards the resistance at 1.2778. The next resistance lies at 1.2833. If Carney’s speech disappoints the investors, the pair will fall to the strong support at 1.2694.

As for EUR/USD, the pair keeps appreciating against the weak US dollar on the updates of the Italian budget deficit. In fact, earlier news suggested the Italian government could reduce the budget deficit to around 2.0% (from 2.4%). In case of more certainty on the Italian budget, the pair can stick above the resistance at 1.1391. The next resistance lies at 1.1432 (50-day ma). If the USD is supported by the FOMC member’s speech, EUR/USD will fall towards the support at 1.1329.

As the USD keeps sliding with the 10-year Treasury bond yield at its three-month lows, it boosts the price for gold. Currently, the price for the yellow metal is testing the resistance at 1,238. If this level is broken, the next resistance lies at 1,248. If bulls cannot hold this level, the support for gold lies at 1,230. It will be interesting to look at this commodity at the end of this week when the non-farm payrolls for the US to be released.

About the Author

FBScontributor

FBS is an international broker with more than 190 countries of presence. FBS organizes seminars and special events, providing its clients with training materials, cutting-edge trading technologies and the latest strategies in the Forex market.

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