Daily analysis on FOREX&COMEX(GOLD/CRUDEOIL). Here we can discuss the trading-related updates and signals. One of the best places to learn.
Thanks. Let’s read, study and give a verdict.
Enough a week the market price for gold moves horizontally that only tests on the same resistance and support areas every time a movement occurs. Moreover, this is seen in the H1 timeframe
Through the current chart the price movement is dominated by the uptrend from early this morning, this happened after the price closed above the lowest price of the previous day. Expectations of the market to move 50 pips from the round price became the focus yesterday. Among them 1805 - 1810 - 1815.
What is the potential that will happen to the price of gold today, my opinion when looking from this chart, the price reached the resistance area of 1815.00 where the price is related to the trendline and I interpret the market is able to make a downtrend movement if the current price does not close above 1815.00
For this reason, I look at the market price being able to go down at least finding the lowest price of the past day. If momentum occurs as a result of the NFP sentiment news at 8.30 tonight, chances are the price is able to go lower.
From this probability, I will set the risk between 1: 3-1: 5 from the 1815.00 trade, and it is likely that the risk setting from the capital will be used as much as 1% of my equity value.
The market’s pulse:
Let’s take a closer look at how these and other important events affect currency prices👇
Weekly changes: #EURUSD +0.75%, #GBPUSD +0.80%, #USDJPY -0.18% , #AUDUSD +2.0%, #NZDUSD +2.37%
EURUSD closed at 1.18770. The pair had been rising all week and exceeded 1.1900 on Friday. But it declined later due to the reach of the overbought area.
GBPUSD climbed to a fresh three-week high at 1.38904 thanks to the greenback’s softness but couldn’t remain at the top and closed Friday at 1.38571.
The Japanese yen strengthened against the greenback while USDJPY closed at 109.673. Meanwhile, the pair showed an insignificant reaction to the Japanese Prime Minister Suga’s decision to retire at the end of the month.
AUDUSDrose for two weeks and reached 0.7477, its highest since mid-July. The pair closed Friday at 0.74457, benefiting from the U.S. dollar’s weakness, but the actual Australian statistics were better than forecasted.
Like the previous pair, NZDUSD constantly rose for two consecutive weeks and finished Friday at 0.71568. Having entered the COVID lockdown, New Zealand’s central bank issued a pretty hawkish statement that boosted the pair.
The eurozone inflation is at a decade high supported the EURUSD pair as well as the greenback’s weakness. The ECB will hold its meeting this week. If its statement sounds hawkish, the pair has the opportunity to extend its advance to 1.120. GBPUSD behaviour was similar to the previous pair. The GBPUSD rose all week and touched 1.38900. The pair had been trading within a wide range for the past two months. And every approach to the edges led to the opposite reversion afterwards.
The Australian GDP showed better than expected numbers, which resulted in the pair’s growth. The RBA will hold its meeting this week, and the investors anticipated the dovish sentiment due to the large numbers of COVID cases in the country. But New Zealand showed the opposite. Having entered the COVID lockdown, the RBNZ declared that it would raise rates towards the end of the year, as it was supposed to. Irrespective of the country’s health status. That gave NZDUSD an additional boost. We’ll see by midweek whether the RBA will change its tone of voice.
USDJPY declined due to the broad greenback weakness. This week the release of the Japanese GDP may influence the pair’s further direction.