July was a good run for risk on assets but the start of August was met with downside pressure supported by the overbought in price level. Non-farm payroll although came in lower than expected, there is a recovery in wage data. As the CPI report is scheduled next week, will the release retrace the loss equities experienced last week or will downside pressure continue?
Upcoming Economic Release:
The awaited red week has happened as indices were sending overbought signal which we have mentioned in our previous posts. Price can potentially find support at 4370 region.
Dollar Index (DXY)
The United States Dollar had an impressive run earlier last week but retraced most of the move on Friday due to the NFP release which also coincide with the descending trend line resistance. Short term bullish bias remains as the Dollar still trades above the ascending trend line. A reversal indication at the current price level (support region at 101.5) and breaking out of the descending trend line can push the Dollar towards the 103.12 resistance region.
Gold closed the week at the bottom of the consolidation as indicated. However short position should only be considered when 1900 support level region is broken out of. With the Dollar at resistance region as well, Gold may continue to trade in consolidation if the Dollar trades towards the downside.
Corn - September Futures (Exclusive Trade)
Recap (Week 31 - Last Week) Take Profit - 1
Long at market position reached Take Profit - 1 level where we announced to close / partial / risk free.
Trade Analysis / Setups
WTI - Front Month (Analysis 32-1)
Analysis: WTI now lies at key resistance region as such potentially reversal can happen. However, short position should only be considered when the first support region is breached.
Short opportunity: Breakout and retest confirmation at 79.04 region towards 73.82 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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