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Brexit aftermath rolls on. On the back of David Cameron’s resignation more MPs have stepped down in the wake of Friday’s shock result. Over three million people have signed a petition for a second referendum to be held. While I understand the despair the chances of that happening are slim to nil. Scotland is very upset by the Brexit vote has talked about the possibility of a new independence referendum or vetoing the Brexit result to remain in the EU.

US markets last night continued selling off with the SPX500, US30, AUS200, GBPUSD making new post-Brexit lows. While the DAX and UK100 saw heavy selling they failed to make new lows, Gold also put on $8 overnight but failed to hold. These are good signs for me. We have been seeing an Asain session recovery which could continue into tonight’s session, I believe there’s a fair chance this will happen.

EU economic summit has started today. The main topic will be Britain’s decision to the leave the EU. I hope to see some strong comments made to reinforce the European Union as an entity.  We did here talk on Friday of other member states being open to their open referendums but this has died down a touch. I hope to see solidarity come out of the EU summit this week. I feel it’s very important at this time of uncertainty.

XAUUSD – I am looking for a recovery in risk. I have a trade idea on gold. Last night buyers took it but failed to hold while US markets closed at new lows. Failed high is the pattern, low break the trigger. Looking for 1300 area if selling continues.

USOUSD – Support found at 46.70 with a failed low gave me the pattern. Off the 4H we had a high break for the trigger. Daily Oil looks to have found a short-term base. If buying continues looking for a move up to test $48.30.

GER30 – We have an inside bar on the daily that has failed at an attempt to move lower. I’m looking for buying to continue this evening. Posible buy idea if we have a test and break of yesterday’s last 4H candle. If buyers continue on, I’m looking for a test of 9443 to the upside.

Trading thought for the day.
“A handful of patience is worth a bushel of brains”  
Good Trading.
All times are in AEST.

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Joseph Jeffriess, GO Markets Market Strategist

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