[Week 32 - 2020] Trades Recap and Trade Setups

Hey Trainee Traders,

Both the DOW and NASDAQ closed higher on the year with Gold reaching all time high as well. We sure live in a very bullish world today! However, crude continues to struggle to keep prices up a however I am quite confident that crude will reach back to 50s before the year ends.

However. I am expecting the equities indices to face some retracement this week, possibly towards the 50EMA (daily) for S&P 500 futures.

Trade Recap

Most of our analysis last week are either invalid or still running.

Dollar Index (DXY)

This was our analysis last week as I was expecting some recovery on the dollar.

Exclusive trade

However, price formed a new structure and we took a long at a better position.

We reached TP1 level and trade is risk free.

Trade Setup

XAU/USD

Bearish: On the daily time frame we can see a bearish engulfing in this very bullish market which could signal a potential retracement. however on the lower time frame there is not much evidence to show that price could be further driven down. We now await for more bearish confirmation if price approaches the Fibonacci retracement resistance and see how reacts from there, potentially a bigger head and shoulders pattern could form as well.

Bullish: overall trend is still strongly bullish however will await for price to break and retest the 0.618 Fibonacci zone/resistance area before going for a long. with all the low interest rate, investors and portfolio managers are putting money in gold for risk-free assets to balance their portfolio as the other products such as bonds does not give a good enough returns.

CAD/CHF

Price has already broke out of the support now resistance region and has a retest confirmation. We can look to enter short and TP target at the recent low.

GBP/USD

Price is now at a support region, we can look to enter short upon the break and retest of the support region. Otherwise look for long opportunity when the recent high is broken.

EUR/USD

Price has broken the ascending trend line which could signal a further downside towards the support region. Await for price action around the support region for confirmation on entry. For long, await for reversal confirmation; For short, await for break of resistance and retest confirmation.

That is all for this week. Trade safe and stay safe.

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