[Week 29 - 2022] Trades Recap and Trade Setups
Updated: Jan 20
Last week CPI reported a higher than expected number, causing huge volatility in the market with a bearish sentiment. However the report of the retails sales managed to recover some of the steep decline in the market. On Friday, the UMich sentiment, which was the catalyst for the the increased rate hike in the previous FOMC, reported a higher number, showing lower inflation expectation which led to more risk on flow to equites.
Next week calendar lineup is fairly heavy with the NZD, GBP, CAD both reporting CPI numbers with the EUR monetary policy meeting and the US PMI. Equities is still weak and will need further support before we can determine a shift in sentiment.
Upcoming Economic Release:
Dollar Index (DXY)
The Dollar descended back towards the ascending trend line with the 50EMA catching up to price. Price can potentially fall back towards the 50EMA, but we maintain bullish bias if price continues to trade above the 50EMA.
Spot Gold (XAU/USD)
Gold extend its decline closing off the week at the 1700 region. Price is now overextended and potentially due for a correction soon. A good position would be to long at the 1679 region which is also the key support area while a breakout of the 1748 region can signal more upside momentum towards the 50EMA.
Sugar #11 - Active Month Contract (Exclusive Trade)
Recap (Week 28 - Last Week) Take Profit - 1
Long at market reopening position reached Take Profit - 1 level where we announced to close / partial / risk free.
Soybean - Active Month Contract (Analysis 27-2)
Recap (Week 28 - Last Week) Take Profit - 2
Short at market reopening position reached Take Profit - 2 level where we announced to close / partial / risk free.
Trade Analysis / Setups
EUR/USD (Analysis 29-1)
Long opportunity: Breakout confirmation at 1.01086 towards 1.01887 as Take Profit - 1 level.
EUR/JPY (Analysis 29-2)
Long opportunity: At market reopening as High Risk Trade towards 141.439 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!