Updated: Jan 20
Stock rebounded throughout the week with the Dollar continued its weakness. The release of the PCE inflation data also supported the risk on environment as the it reported a declined from 5.2% to 4.9% in April while the headline came in at 6.3% vs 6.6%, indicating a decline in inflation.
Next week's unemployment report will also be the key highlight as companies has indicated a slow down in growth and potentially reducing headcount. If we were to see any signs of increase in unemployment, we could potentially see a reversal in stock indices.
Upcoming Economic Release:
Dollar Index (DXY)
The Dollar continue to weaken, breaking below the 102.35 region. To maintain the bullish outlook of the dollar, it would need to break above the 102.35 region else it may fall towards the 100.0 region.
Spot Gold (XAU/USD)
Despite the weaker Dollar, Gold struggled to increase in value, trading around the 1850 region. A break of the 1832 support region can potentially fuel more downside move.
AUD/NZD (Analysis 19-1)
Recap (Week 21 - Last Week) Stopped
Long at market position got stopped out.
Trade Analysis / Setups
GBP/USD (Analysis 22-1)
Long opportunity: Break and retest of 1.26562 resistance region towards 1.27291 as Take Profit - 1 level.
Short opportunity: Break and retest of 1.260 support region towards 1.24881 as Take Profit - 1 level.
AUD/JPY (Analysis 22-2)
Long opportunity: Break and retest of 90.967 resistance region towards 92.485 as Take Profit - 1 level.
Cheers to all our member who managed to pack some profits this trading week.
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