In today’sMarket Outlook, let’s take a look at Forex Trading on Gold, XAUUSD, Brent Crude Oil, EURCHF, USDCHF, the NASDAQ, and the Dow Jones Industrial Average.
Just a reminder that these videos are intended as educational, we are only observing current market conditions, and these are not to be considered as trading advice.
Again, we see the NASDAQ in recovery mode with investors buying back into AI and growth companies.
Others, however, like the DJIA, are still falling with an obvious bearish trend channel.
We will be looking for signs of factors that might drive these indices back up, and we will go into more detail in next Tuesday’s video.
For now, though, we have the US Non-Farm Payrolls today, and everyone, especially the Federal Reserve, will be watching.
If the actual figures miss the forecast, either way, we will see the indices and USD pairs moving in the appropriate direction.
Looking at USD pairs, USD is stronger right across the board except against CAD, and we will see why in a minute.
Meanwhile, USDCHF is consolidating into a descending triangle, so, technically, price action could go either way.
If we look at all CHF pairs, we see the same volatility as last week, rumours were floated that the Swiss National Bank may lower interest rates.
EURCHF shows us how volatility can give us some nice opportunities trading news events when price action is dramatically affected by economic news.
Most importantly, when price action returned to previous levels, the trend continued.
Getting back to CAD, the reason for the strength is the price of crude, which is rising due to the tensions in the Middle East.
But here we see a rising wedge on Brent Crude, which is a technical bearish pattern.
However, if the Strait of Hormuz is still under siege in the next few weeks, we may see many countries running short of crude, which will drive prices up even more.
Looking at the 4-hour charts, we see all precious metals falling but that may not be the whole story.
On gold, for example, on the daily charts, we see price action at the lower trend line and the stochastic oscillator oversold.
Any more geopolitical tensions or a weakening of USD on the back of today’s Non-Farm Payrolls might drive XAUUSD higher.
Of course, if the contrary is true, we could see gold fall.
Keep an eye on the news!
