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Hey Traders,
Early on the week, there were rumours of potential failure of the financial bank, specifically Credit Suisse. This worry eventually passed as many realised that there would not be a impact of the global financial market. The market then shifted its focus onto the job reports which releases good numbers on Friday. However, with all the hawkish tone from the FED surrounding the market, market participants fear grew as this upcoming week would be the FOMC Minutes, causing stocks to tumble while the Dollar grew in strength just before the week ended.
Upcoming Economic Release:
Dollar Index (DXY)
The United States Dollar Index slipped earlier on the week, falling back towards the key support region at 110.6 as mentioned on our post last week as the 111.75 support does not hold. Price reverses from said key level and closed the week above the 50 exponential moving average (EMA) on the 4-hour time frame. As price was previously extended, this could be the needed retracement for the Dollar to push again to new high.
Spot Gold (XAU/USD)
As mentioned on last week post, a move above the 1680 resistance level will elevate price of Gold towards the upside. Price reaches an extended level earlier on the week but met with the 1732 resistance region and retraced back towards the 50 exponential moving average (EMA). A reversal from the 50-EMA would also be supported by the support region at 1695, potentially towards the 1732 resistance region. However, if both the 50-EMA and the support level do not hold, there will be more downside potential for Gold.
Trade Recap
Cotton #2 - December Futures (Analysis 40-1)
Recap (Week 40 - Last Week) Take Profit - 1
Long at market reopening position reached Take Profit - 1 level where we announced to close / partial / risk free.
Trade Analysis / Setups
AUD/JPY (Analysis 41-1)
Analysis: AUD/JPY has been trading in consolidation in the lower timeframe between 92.485 and 94.109 region. We will await for any breakout and retest confirmation before taking either long or short depending on the direction of the breakout.
Long opportunity: Break and retest confirmation at 94.109 resistance region towards 95.572 as Take Profit - 1 level.
Short opportunity: Break and retest confirmation at 92.485 support region towards 90.967 as Take Profit - 1 level.
Cheers to all our member who managed to pack some profits this trading week.
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