Free Trade Ideas

Welcome to Mid-Week Trade! The Iran/US-Israel War continues to dominate the news cycle and drive volatility in the markets. At this hour, US index futures are extending Tuesday’s losses in early electronic trading. The USD Index continues to drive higher, with metals following suit. Action is seemingly the only rule and likely to continue into tomorrow’s session. Tuesday was a wild session. Traders eagerly priced war developments, creating whipsaw conditions across many asset classes. The CBOE Volatility Index (VIX) spiked by 10%, driving north of the 21 long-term average. Big movers were North Sea Brent and West Texas Intermediate crude oil, both trending higher. Here is a level worth watching in the USD/JPY:
Daily 38% Retracement, 157.042
Be sure to check out our Key Levels for more information on this Trade Idea. During Tuesday’s US session, POTUS Trump announced that the US would provide insurance and assistance to oil tankers passing through the Strait of Hormuz. Iran has repeatedly threatened to close the shipping lanes, pledging to sink any vessel that attempts to navigate these waters. The threats have been a major deterrent, forcing tanker insurance companies to hike premiums to all-time highs.
The result of the Hormuz situation has been a spike in oil prices. In response, Trump signed an economic emergency order that guaranteed insurance for oil tankers in Hormuz and stated that Navy ships would escort them through the strait as needed. This is a fluid situation; we’ll cover the latest on tomorrow’s 13:30 GMT live stream on Switch Markets YouTube channel.
That’s all for now. Trade well, and we’ll see you in the markets!