Free Profitable Forex Newsletter
Hey! This is Philip with a market update of the Free Profitable Forex Newsletter!
Forex Update; Expect Volatile Trading For The Remainder Of The Week
We are mid-way into the trading week but the most impactful events and reports are still ahead of us. Hence, volatile price action behavior can be expected in the remaining 2 and ½ trading days of the week.
We have the ISM Manufacturing from the US and the Fed meeting today, the Bank of England meets tomorrow and the US Non-Farm Payrolls will be released on Friday. On top of all, Japan is on holiday due to the Golden Week so any large price movements could be exacerbated by thin liquidity especially during the overnight/Asian session.
As noted above, the most important events are from the US, so the US Dollar will be particularly affected and this could be even a decisive week for the currency (meaning that trends/reversals could be set that will last for longer).
Last week, the stop on the long USDJPY trade was taken out, although USDJPY could still turn around and go higher again if the US Dollar strengthens this week. If the Fed is neutral and the NFP and the ISM reports are strong that should be able to drive USD broadly higher including USDJPY
EURUSD is up this week on the back of better than expected GDP reports yesterday. We’ll see how the rest of the events play out this week, but it’s unlikely that just one good GDP print will be enough for a sustained bullish breakout.
Potentially if US Data disappoints then EURUSD would be able to easily complete a bullish breakout, but if US data is strong (such as ISM Manufcaturing today and NFP on Friday) then resistance in EURUSD will likely work and the pair would decline again.
Our short Gold trade from 2 weeks ago stays open. Near-term Gold is still likely to continue lower and reach the $1250 area, although the longer-term outlook appears less clear.
Continued solid performance of the US economy and if the Fed maintains a natural to hawkish bias at the meeting later today should be enough to provide another push to the downside for Gold prices (XAUUSD). However, the risk is particularly if the Fed is overly dovish in which case Gold could return above $1300 again, though that seems unlikely.
Below, we are taking a look at the Dollar Index chart which is also standing at key technical levels and could make a decisive breakout this week.
To conclude, it’s difficult to pick good opportunities in a week like this that is packed with huge events. So, standing aside and waiting for the dust to settle is often a better option than risking money in highly uncertain times.
I am not sending any trade recommendation for this week as we will also be staying on the sidelines aside from the Gold trade and some longer-term positions. I will send an additional update toward the end of the week shall clearer trading opportunities appear on the charts.
Trade signals from the past week
- April 25, 2019– Long USDJPY from 111.85, stop taken out at 111.50 = -35 pips
- April 17, 2019 – Short Gold from $1275 (in progress)
TOTAL: -35 pips in the past week
TOTAL: +1070 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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