Free Profitable Forex Newsletter
Hey! This is Philip with another Forex update of the Free Profitable Forex Newsletter!
We are in another week of dead-end, record low volatility for Fx markets. There is not much going on across the different Fx pairs as price action remains constrained in tight ranges with jittery irregular reactions on news headlines or economic releases, which are anything but suitable for trading.
The latest negative developments in the US-China trade talks have set off a new wave of risk aversion which has seen Gold rising and JPY pairs falling. It appears that China has backtracked on what was already roughly agreed with the US - leading to President Trump tweeting Sunday night that tariffs will go up for China on Friday.
The reaction in markets though is fairly muted compared to other instances of risk aversion - almost as markets are refusing to believe what could be a bluff from Trump. After all, it is in no one's interest for the negotiations to break down and tariffs to be permanently raised. Hence, the risk-off move will probably be completely reversed if somehow the US and China get back on the track toward reaching a deal in the coming days/weeks.
Update (this is just happening as of writing) - USDJPY
Moments ago it was reported that US President Trump has received a letter from the Chinese President with an excellent alternative to deal. Trump has also said that a deal is still possible this week (completely the opposite of his Sunday move).
We are already seeing a small bounce in USDJPY, S&P 500 and a rejection of highs in Gold. The moves can extend if risk appetite is revived as described above.
Here we show an interesting trading opportunity on USDJPY that could be triggered on a bullish breakout of the 109.90 resistance and a return back above 110.00.
Risk-reward for this trade also appeals at current levels.
Potential buying opportunity on USDJPY
- Look to enter on a bullish breakout of the resistance trendline
Stop loss:
Targets:
- Toward 111.00 and looking for USDJPY to fill the weekend gap
Below we discuss the latest developments on USD and Gold.
The gradual USD strength looks likely to stay with us for a while, but finding good trading opportunities in this environment has been tricky as everything looks like one big broad range. CPI inflation data from the US will be published tomorrow. Barring any huge surprises in the report, numbers in line with forecasts should keep the USD supported versus most of its peers.
Gold has entered a trading range between $1270 and $1290, a few times challenging our short trade from two weeks ago. Certainly, if risk appetite breaks down for some reason, either US-China tensions, stock markets crashing, or some other reason, then Gold will breakout to the upside.
On the other hand, a return to stability and risk-on will likely help prices to take another push to the downside (likely toward our $1250 target) as Gold will be switched in favor of more risky assets.
Trade signals from the past week
- No specific trade ideas sent last week
- April 17, 2019 – Short Gold from $1275 (in progress)
TOTAL: 0 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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