Free Profitable Forex Newsletter
Hey! This is Philip with this week's trade idea of the Free Profitable Forex Newsletter!
Looking To Sell Gold Targetting Levels Toward $1250
Technical and fundamental factors are titled in favor of Gold taking another bearish leg to the downside.
Risk sentiment has played a big role in markets again lately, this time as risk appetite gained traction - mainly amid positive economic data out of China and the US. The longer extension of the Brexit deadline is also supportive of risk appetite as it further increases the chances that the UK and the EU will reach some agreement to avoid the scary no deal scenario.
In the meantime, the biggest central banks in the world have all shifted to dovish recently while the US economy continues to expand at a solid pace. Chinese data last week and this week also surprised to the upside suggesting that the Chinese economy is starting to recover - a factor risky assets have long been waiting in order to be able to rally.
And, in turn, if the two largest economies in the world US and China are growing at a solid pace then all other economies will benefit also. The bottom line being, risk appetite is likely to stay supported for a while longer which is a big factor working against already expensive Gold price levels.
XAUUSD broke important support areas yesterday. Namely, the 200-day moving average (around $1285) as well as horizontal support due to 3 -4 previous lows around the same levels.
The yellow metal is also trading in a downward bearish channel which support trendline stands around the $1250 level. The 200-day moving average and the 50-week moving average are also found in this same area, hence why it seems like a highly likely price to be reached in the coming days and the target for this trade.
- Look to enter around current levels ($1275);
- Or as close to the $1290 area as possible, but it’s fairly likely that this area won’t be reached again
Stop loss:
- Above the $1290 former support - now resistance area of the broken 100-DMA and horizontal support
Targets:
- The $1250 support area as shown on the chart
Trade signals from the past week
Week April 08 – April 12, 2019
- April 12, 2019 – Short EURUSD from 1.1315, closed manually at 1.1280 (April 16 near 1st target of bat pattern) as conditions for a larger bearish move have changed since last week due to strong risk appetite = +35 pips profit
- March 25, 2019 – GBPUSD (in progress)
TOTAL: +35 pips in the past week
TOTAL: +1255 pips profit since October 1, 2018
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Any opinions, news, research,
predictions, analyses, prices or other information contained in this newsletter is provided as general market commentary and does not constitute investment advice. FX Trading Revolution will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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