There were a lot of fundamental developments last week, which led to a higher risk off sentiment. Nvidia stock which has been a major beneficiary of the AI boom, has begun experiencing some pressure as the US increased its efforts to restrict chip sales to China. In addition, the US PPI came out slightly stronger than expected, causing a increased in yield which spilled over risk on assets.
Next week news release will be heavy on the Oceanic region.
Upcoming Economic Release:
The S&P500 experienced another week of red but with a small body this time. Supported by seasonal weakness, equities may experience more downside potentially towards 4370 region as the first target.
Dollar Index (DXY)
The United States Dollar short term bullish outlook looks to strengthen as it continues to trade above ascending trend line but now has trade above the higher time frame descending trend line. Price now looks to ascend towards the 103.12 resistance region. Breaking out of this resistance region can push price further but it is also likely that the Dollar will begin experiencing some form of consolidation or retracement due to the recent upside movement.
Gold extends past the consolidation and extends towards the recent low region. Price can potentially experience more weakness before a consolidation or retracement as the Dollar look to appreciate a little bit further as explained earlier.
Trade Analysis / Setups
Corn Futures - September (Analysis 33-1)
Analysis: Price extends decline due to the release of the USDA report towards the recent low, which was also formed due to the release of the USDA report. Price can be seen as extended and with price now at support region, it is likely that price will begin experiencing retracement soon.
Long opportunity: Long at market reopening as High Risk trade towards 498.0 as Take Profit - 1 level.
WTI - Front Month (Analysis 33-2)
Analysis: Price has experienced a good run towards the upside and is now extended. Price is likely to experience a consolidation and if lucky, a retracement.
Short opportunity: Short at market reopening as High Risk trade towards 80.61 as Take Profit - 1 level.
Cheers to all our member who managed to pack some profits this trading week.
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