The Non-farm payroll coupled with the price in bond prices, sent the Dollar lower on Friday. The CPI will be the key highlight of net week. Dollar pressure / risk on sentiment remains. Commodity prices has came down significantly over the past few months and with the market pricing in expectation, as market participants may begin to take in profits, pushing a sell the fact narrative. Nonetheless, we have other important reports queued up next week, expect volatility.
Upcoming Economic Release:
The S&P500 begun trading in the range between the 4370 and the recent high at 4475 region. As mentioned in our previous posts, the index was overbought and this consolidation of prices can potentially propel equities even higher. Short term downside should only be considered if 4370 support region is breached.
Dollar Index (DXY)
The United States Dollar Index reattempts to break above the resistance at 103.3 but failed and slipped to near the recent bottom. Bullish trend can only be confirmed if the 103.3 resistance is breached while the medium term downtrend continuation can be confirmed when the 101.54 recent low is breached.
Gold attempted to break out of the resistance at 1935 region several times last week but failed. If price manage to trade above this resistance, we can see price trade towards 1980 region. If price breaks below the 1910 region, we can potentially see more downside for Gold.
Trade Analysis / Setups
NZD/CAD (Analysis 28-1)
Analysis: Price momentum has slowed as it approaches resistance region. Potential continuation of longer term bearish trend can be entered when price breaks below minor support.
Short opportunity: Break and retest confirmation at 0.82 support region towards 0.81396 as Take Profit - 1 level.
Cheers to all our member who managed to pack some profits this trading week.
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