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Hey Traders,
This week was dominated by risk off sentiment as inflation worries creeps back in along with the concerns of the debt ceiling. The United States Dollar (USD) experienced an impressive move towards the upside, supporting our view that the Dollar Index is trading cheaply at the 101.00 region. However, equities movement are mixed as the S&P500 index remains strong but the Russell 2000 trades back towards the recent low, giving us a divergence.
Friday is the key highlight of next week as Powell is scheduled to speak.
Upcoming Economic Release:
S&P500 Futures
The S&P500 continues to trade in consolidation with no clear sense of direction. Upside bias remains as we are trading near key resistance region at 4180, potentially waiting for a breakout towards the upside.
Dollar Index (DXY)
The United States Dollar Index broke out towards the upside, invalidating both the descending trend line and the daily 50 exponential moving average (EMA). Price is met with resistance level at 102.75 which can push price back towards 101.54. However, if the resistance is broken through, we may see the Dollar push towards the 104.085 region.
Gold Futures
Gold retraces most of the bearish move but was unable to maintain above the 2045 level. Price fell back to last week low where price found support at the 2007 region. Price looks to consolidate between 2007 and 2025. A breakout of the 2007 support region can potentially push price more towards the downside, possibly towards 1985 support region.
Trade Recap
No Updates
Trade Analysis / Setups
NZD/CAD (Analysis 20-1)
Analysis: Momentum of recent downside movement can be seen as overextended. Thus, we will look for position against the recent movement (long) for potential retracement in price.
Long opportunity: At market reopening as High Risk trade towards 0.84179 as Take Profit - 1 level.
Cheers to all our member who managed to pack some profits this trading week. Remember to always trade safely.
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Stay safe out there and safe trading!
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