Updated: Jan 20
Last Friday, Russia shut down the Nord Stream 1, causing a huge alarm in the market as the Europe will be in a dire energy situation as Winter is approaching, potentially increasing the cost of everything in the region (inflation). With EUR/USD trying to maintain parity, it would not be long that the EUR will continue its slide. Moreover, risk asset was struck upon the decision made by Russia, retracing all the upside movement and closed near the low of the week. One of the key highlight is Powell's speech next week, it is likely that market will continue its slide if he asserts his hawkish tone.
Upcoming Economic Release:
Dollar Index (DXY)
The Dollar slowly attempts to push towards 110.0. Bullish sentiment on the Dollar remains as it continues to trade above the 50EMA on the 4hr timeframe. 108.191 region continues to remain as a key short term support. A breakout confirmation below the support can then change the short-term bullish outlook.
Spot Gold (XAU/USD)
As the Dollar continues its strength as the preferred safe haven than Gold, weakness in Gold will remain. Price for Gold reached 1700 region which is the recent low of Gold and acting as a support level. Price managed to recovered some points towards the 1720 region with the horizontal and 50EMA acting as resistance zone at the price region. If price managed to push towards the 1720, you can potentially see more upside movement for Gold.
Trade Analysis / Setups
WTI - Active Month Contract (Analysis 36-1)
Long opportunity: At market reopening towards 89.24 as Take Profit - 1 level.
Soybean- Active Month Contract (Analysis 36-2)
Long opportunity: At market reopens towards 1450.25 as Take Profit - 1 as High Risk Trade.
Cheers to all our member who managed to pack some profits this trading week.
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