In today’s live trading session, we went over to why US Oil has negative prices and what that means moving forward. We then found potential setups for GBPJPY and EURAUD.
Yesterday US Oil (Crude) recorded its worst losing day in history. The depreciation of the commodity was so rapid, that it eventually reached negative prices. What this means is that there are millions of barrels worth of oil simply sitting there with no one to sell it to. The supply has overtaken the demand by ten-fold. Some oil producers are actually selling at a loss and paying customers to take the Oil. A very dire situation, which shall remain for the foreseeable future.
In today’s session, we have set our eye on a few promising setups that could take us to the promised land this week. One setup is a short for GBPJPY. This pair has seen significant selling during the previous London session due to an expected increase in unemployment. Another potential setup we are eyeing is a long for EURAUD. We expect the Australian Dollar to give up some of the gains it has made against the US Dollar, and consequently show weakness against other pairs. We are waiting for a key break to the upside to take this trade.
The markets are definitely moving with an extra pep in their step this week. We are seeing a lot of sudden and erratic movements which can only be understandable during these times. As long as risk management is imposed and emotions are kept in check, any market condition is tradeable. Hopefully, these conditions will give way for entry to our pending setups and thus the potential to make some profits before things get real crazy on Thursday. As always, be safe and trade responsibly.
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