Last week was calm and gave scalping opportunities in many markets, including Gold. All thanks to a government shutdown. As a result not many economic reports were released. Powell recently said – the economy is doing well right now, but the weakness in the markets and the uncertainty abroad requires them to be patient with rate hikes. So, likely we will not see any hikes till summer.
I know many forex traders are too excited about his message and consider greenback is not worth buying. Well, they are partially right. But analysing one currency is not enough to get a clear understanding of money flow. I mentioned many times that nothing good is happening for USD. But look at the global economy, look at EUR.. The EU economy is weakening much faster. Don’t forget about political risks in EU. So, yes, not so much enthusiasm to buy the dollar, but the situation with EUR is much worse.
Last week EUR/USD price was rejected from daily resistance, forming a false break up. This week watch price action near 1.14850 range. If it gets rejected, market drift to 1.12500 and 1.11200 given enough time (at least till any important fundamentals will change).
Another interesting market to watch is WTI Oil. Last Friday price broke down a channel. I am not sure if it was a real break down or not. So, I will watch 52.20 – 52.50 range. If rejected there, go short with 49.80 target. But if consolidation takes place, the price will likely come back into channel. In this case, consider longs with target $55 a barrel.
I will keep all my trading signals subscribers updated about all changes.
Good luck and good trading!
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