Updated: Jan 20
Risk off mood throughout the week as inflation fear continues to weighs on. It is not helpful with the Swiss coming out with a surprise rate increase. USD/JPY continues to weaken while the BOJ continues to sit on the sideline. The below is the impact of rising interest rate, especially when it is not done appropriately. Tech firms has already started laying off but will other industries assist in maintaining an low unemployment?
Upcoming Economic Release:
Dollar Index (DXY)
The Dollar experienced a short sharp correction towards the 50 exponential moving average (EMA) of the 4 hour time frame earlier on the week but recovered most of the move, looking for more upside.
Spot Gold (XAU/USD)
Gold continues to trade within the range between 1832 and 1830 with no clear direction. As mentioned, a clear break out of either side can indicate the next direction for Gold.
AUD/JPY (Analysis 24-1)
Recap (Week 24 - Last Week) Take Profit - 2
Short position reached Take Profit - 2 level where we announced to close / partial.
NZD/CAD (Analysis 24-2)
Recap (Week 24 - Last Week) Stopped
Long at market reopen position got stopped out.
Trade Analysis / Setups
EUR/JPY (Analysis 25-1)
Long opportunity: Retest confirmation at support level region 139.533 towards 141.439 as Take Profit - 1 level.
Corn Futures - July (Analysis 25-2)
Long opportunity: Retest confirmation at support level region 781.25 towards 809.5 as Take Profit - 1 level.
Copper Futures - July (Analysis 25-3)
Long opportunity: Reversal confirmation at support level region 3.9730 towards 4.1345 as Take Profit - 1 level.
Cheers to all our member who managed to pack some profits this trading week.
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Stay safe out there and safe trading!