Risk on flow as German PMI showed better than expected number, indicating reduced possibility of economic contraction. In addition, the FEDs minutes indicated slowing the pace of rate hikes being appropriate gave a more positive sentiments throughout the festive trading week.
As job related reports are becoming increasingly important for indication of potential recession, next weeks unemployment release will be the main highlight of next week.
Upcoming Economic Release:
The S&P500 index pushes upwards and trades towards the recent high. In addition, the index is also progressively trading towards the longer time frame descending trend line. Short term bullish outlook remains intact as the index trades above the ascending trend line. The short term ascending trend line remain as an important indicator because it can indicate a potential retracement or even reversal if the trend line does not hold.
Dollar Index (DXY)
The United States Dollar Index failed to keep its recovery in strength and fell to low of the range. The Dollar Index downside pressure remain high and breakout of the support region at 105.0 can indicate a shift in medium to long term trend.
Spot Gold (XAU/USD)
Gold slowdown in momentum managed to maintained price above the 1740 key support region. Price broke out but swiftly recovered as buyers came into bid, creating a bullish pin bar as indicated on the chart above. This can potentially indicate that Gold price may continue to climb towards the upside at least towards the recent high at 1790.0.
NZD/CAD (Analysis 47-1)
Recap (Week 47 - Last Week) Take Profit - 1
Short at market reopening position reached Take Profit - 1 level during RBA release where we announced to close / partial / risk free.
Soybean Oil Futures (Exclusive Trade)
Recap (Week 47 - Last Week) Take Profit - 2
Exclusive signal to long at market reopening reached Take Profit - 2 level where we announced to close fully.
Trade Analysis / Setups
NZD/CAD (Analysis 48-1)
Short opportunity: At market reopening as High Risk trade towards 0.82762 as Take Profit - 1 level.
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