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Market Outlook: Turkey attacks northern Syria

Sends in the air force and the army
October 10, 2019

Overnight Turkish forces have attacked land occupied by roughly 3 million Kurdish peoples on the country’s southern border with Syria. Apparently, President Erdogan feels he’s been given a green light to do so now that President Trump has announced the withdrawal of US troops from the region. Britain, France and Germany have asked for an emergency meeting of the UN Security Council on the issue.

August trade data from Germany published this morning quite a shocker. Imports increased by 0.5 per cent, exports dropped by 1.8 per cent, taking the surplus down from €20.2 billion to €18.1 billion. The current account shrunk even faster, from €22.1 billion to €16.9 billion.

DAX 30

A shooting star candle against Monday and Tuesday’s highs underlines resistance just under 12200. Worth noting that the Financial Times reports that Deutsche Bank is likely to be the biggest beneficiary of the Fed’s decision to cancel the idea of making foreign investment banks hold more capital in the US.

 

SHORT TERM TRADER: Short at 12365; stop above 12275. Target 11635.

 

POSITION TAKER:  Short at 12350; stop above 12400. Target 11425.

FTSE 100

A little shooting star at 7200 as EUR/GBP touches £0.9000 this morning.

 

SHORT TERM TRADER:   Small short at 7140; stop above 7275. Target 7025.

 

POSITION TAKER:  Square.

S&P 500

A large shooting star candle yesterday underlines the tussle going on at the half-way point between July’s high and August’s low. It also mirrors the sings in sentiment over the endless China-US trade talks.

 

 

SHORT TERM TRADER: Small short at 2945; stop above 2965. Target 2820.

 

POSITION TAKER:   Short at 2898; stop above 2965. Target 2800, maybe 2730.

BRITISH POUND/US DOLLAR

No change as the countdown continues.

 

SHORT TERM TRADER:  Small long at 1.2290; stop well below 1.2200. Target 1.2500.

 

POSITION TAKER:  Square.

EURO/US DOLLAR

Testing trend line resistance and momentum just turned bullish yesterday.

 

SHORT TERM TRADER:  Small long at 1.0970; stop below 1.0880. Target 1.1100.

 

POSITION TAKER:  Square.

GOLD

Absolutely no momentum to get anything done here.

                            

SHORT TERM TRADER:  Short at 1520; stop above 1535. Target 1440.

 

POSITION TAKER:  Short at 1507; stop above 1560. Target 1440.

Nicole Elliott is a long-standing member and Fellow of the Society of Technical Analysts and has taken over the IC’s trading coverage.  She is regularly interviewed and quoted by the financial media, is a conference speaker, and author of several books on charting.