BREAKING NEWS : $500 - $5000 No Deposit Bonus Hurry up, Join Now!
Written by experienced traders and professional market analysts, our Forex technical analysis is just what you need to get an edge in your Forex trading
Advertisement etoro

World Markets Tumble After Huawei Executive Arrest

Written by By Paul Rejczak | 2018-12-06 14:30:46 GMT

We in the kingdom are going to be advocating something adequate to balance the market. A cut of about 1 million barrels a day from the whole group should be adequate and “certainly we don’t want to shock the market.

As the cartel was meeting, Russia’s oil minister, Alexander Novak rushed to Russia to consult with Vladimir Putin about the supply cuts. Russia is not a member of OPEC but in recent years, it has worked closely with the organization.

World markets declined today after Canada arrested the CFO of Huawei at the request of the United States. The CFO, who is also the daughter of the company’s founder was arrested for allegedly violating Iranian sanctions. This led to European stocks to decline at the lowest level in two years. The Stoxx is having its worst month since October. In Asia stocks ended the day in the red and in the United States, the Dow and S&P pointed to a sharp decline of 400 and 40 points respectively. These declines are happening a few days after Trump met with his Chinese counterpart at the G20 meeting.

The USD declined today after ADP released the non-farm payroll numbers. The numbers showed that the economy created 179K jobs in November, which was lower than the consensus estimate of 196K. This data often differs by a large margin with the official government data from the Labor department. Shortly after the data was released, the jobless claims numbers also disappointed. The initial jobless claims increased to 231K, which was higher than the consensus estimate of 226K. The continuing jobless claims of 1,631K was better than the estimated 1,700K.


The price of crude oil dropped after the statement by OPEC. The XTI/USD pair moved to an intraday low of 50.30, ending a minor rally that started on Monday. The price will likely be affected later today by the inventory numbers from the US. On the four-hour chart below, the pair’s price is close to last week’s low of 49.42. Its price is also below the 50-day and 25-day EMA while the RSI has dropped from 62 to 40. It points to a continued pace of declines. Therefore, with today’s statement by OPEC, there is a likelihood that the pair will continue moving lower. However, the price could start a rally if US congress moves ahead with the planned retaliation over Khashoggi’s killing.



The AUD/JPY cross has fallen sharply since Monday. After a few weeks of upward trend, the pair has fallen by more than 2% after a series of disappointing data from Australia. As of writing, the pair is trading at 81.2, which is the lowest decline since the beginning of November. On the four-hour chart below, the pair’s current price is below the 25-day and 50-day EMA. The RSI has moved from 75 to the current 25 and there are signs that it will continue moving lower. If it moves below the current support, the pair will likely continue moving lower to the support of 80.



The EUR/USD pair moved up slightly after ADP released the payroll numbers. It reached an intraday high of 1.1370. Still, this was a slight movement and is within the narrow range the pair has been trading in over the past few days. The MACD on the four-hour chart was unmoved and was along the neutral level. The price was also along the short-term moving averages. With the pair close to the apex of the triangular pattern, the pair will likely have a breakout after the official government jobs numbers tomorrow.



By Paul Rejczak

Start Trading With Top Industry Brokers

Broker Profile Open Account
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:30
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • xm
  • Minimum Deposit: 100 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CySEC
  • Markets
  • Minimum Deposit: 250 USD
  • Leverage of up to 1:200
  • Broker Type : Market maker
  • Regulation : CySEC
  • trade

    The Best Crypto to Crypto

    Exchanger Advantages Open Account
  • Safety Stability: Multi-tier & multi-cluster system architecture
  • Binance charges a quite low commission fee
  • Multiple-Coin Support : BTC, ETH, LTC, BNB...
  • High Liquidity
  • Multiple-Language Support
  • binance
  • Instant cryptocurrency exchange
  • More than 500,000 satisfied users
  • Changelly charges a quite low commission fee
  • Safety Stability
  • changelly
  • Bitmex - Bitcoin Mercantile Exchange is a cryptocurrency derivatives trading platform.
  • Bitmex charges a quite low commission fee
  • Safety Stability
  • changelly

    Best Brokers to Trade Crypto

    Broker Profile Open Account
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:30
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • XM
  • Offer: 50USD No Deposit Bonus
  • Offer: 100% Deposit Bonus
  • Minimum Deposit: 1 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CRFIN (Russia), 009069697 IFSC (Belize), IFSC/60/230/TS/12
  • FBS
  • Offer: 1000USD Deposit Bonus
  • Minimum Deposit: 50 USD
  • Leverage of up to 1:400
  • Broker Type : STP
  • Regulation : ASIC, 335692 CFTC/NFA, 0382918 CySEC, 109/10
  • eToro

    Contact us