[Week 19 - 2022] Trades Recap and Trade Setups

Updated: Jan 20

Hey Traders,

The FOMC released caused an initial risk on spike, with the Dollar falling while Equites having a bit of recovery rise. However, all these did not last as the FOMC removes we almost all recovered. Stock indices continues to experience high volatility with a stronger downside pressure. The story of deleveraging continues as investors reduce their risk on exposure because as of now, cash is king.

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Credit: ForexFactory.com Time: +8 GMT

Dollar Index (DXY)

The Dollar experienced a fall during the release of the FOMC but the move was quickly recovered by the next day with the Dollar experiencing a new recent high. The Dollar is still showing signs of strength but is now trading in consolidation. A firm breakout of the 103.65 region can potentially push the Dollar higher while a breakout of the 102.842 support level may push price towards 101.5.

Spot Gold (XAU/USD)

Gold fall but found support at minor support level

Gold experienced some strength when the Dollar fell but the move was quickly retraced when the Dollar moved back up. However, Gold price continue to show resilience as no new lows was established.

Trade Recap

Dollar Index (Analysis 12-1)