It was a risk off week as was anticipated due to the extension of risk on activities. However, will the risk off sentiment continue in this coming week? After all, last week's PMI numbers in both the European region and the United States came in weaker than expected. Is the possibility of recession back on the table? Powell might give us a hint as he is scheduled to speak this upcoming week.
Upcoming Economic Release:
As mentioned in our previous post, we mentioned that the S&P500 is extended and price could potentially stall or retrace which was experienced this week as the index experienced 4 red days out of the 5 trading days. With the 50 daily exponential moving average (EMA) as a guide, price could potentially fall back towards 4,300 support level.
Dollar Index (DXY)
The United Dollar Index experienced attempts to reverse from the downside momentum experienced in the prior week. Price reverses from the 102.1 support region and traded above the descending trend line. Price now looks to trade towards the 103.4 region and possibly towards the recent high. However, if price breaks below the 102.1 support, it can very well head towards the 101.05 support region.
Gold continued to face downside pressure as it potentially trades towards the 50 weekly exponential moving average (EMA). If the moving average is breached, Gold can potentially dip towards the mid range support at 1820 region.
However, if price trades above the 1938 resistance zone, price can trade back the consolidation range between the the 1938 and 1980 region. However if price breaks out of the 1912 minor / previous high support region, downside pressure may continue, pushing price towards the 1885 region.
AUD/USD (Analysis 25-1)
Recap (Week 25 - Last Week) Take Profit - 4
High risk short at market reopening position reached Take Profit - 4 where we announced to close / partial.
Trade Analysis / Setups
Sugar #11 - July Futures (Analysis 26-1)
Analysis: Price is mildly extended and lies at the bottom of the range between 24.20 and 26.80. Due to these two factors, long opportunity can be identified as we assume price to trade back to above the range and even with a downside breakout, it would most likely be false.
Short opportunity: Long at market reopening as High Risk trade towards 25.07 as Take Profit - 1 level.
Cheers to all our member who managed to pack some profits this trading week.
Year 2023 Market Order Signal Accuracy
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