Welcome to today’s Market Blast.
Today, we will take a look at Forex Trading on Gold, XAUUSD, USD Index, USDCAD, NZDUSD, and AUDUSD.
We don’t often look at weekly charts, but I just wanted to illustrate this bull run on AUDUSD and, in fact, all AUD pairs, all this year.
The RBA just increased their interest rates, but analysts feel that that was already baked into pricing.
They also feel that the run may be coming to an end, but be careful.
If the economy slows, based on the energy crisis or a slowdown in China, they may pause rate increases, but inflation may be a problem, so let’s watch the economic figures.
If we move into the 4-hour chart, we see more of a range trade.
However, we will learn more this week after the US Non-Farm Payroll report.
We have a similar situation with NZDUSD, with a very clear line of resistance.
Also, in the economic calendar, we see that both the US and Canada will be announcing their employment data at the same time.
This is a very common occurrence, and if the figures are contradictory and go against the trend, this gives us a great opportunity to enter a position with the trend.
CAD is strong now because of the elevated price of crude oil, thanks to the Iran War.
Technically, we see a clear bearish channel and price action near the upper trend line.
The stochastic oscillator is very overbought, but keep an eye on the news and the trend line.
To gauge where USD is, the USD Index shows us price action mid-range between $0.95 and $1.00, so check all your USD pairs for opportunities after the Non-Farm Payrolls.
This will all be relative to XAUUSD this week as investors are shifting away from the precious metal safe haven and investing in equities.
If we see any USD strength this week, gold may fall further, or it may rise to this upper trend line and fall if bearish sentiment continues.
The only other thing we notice is that we might be seeing price action in a falling wedge, which is often a bullish pattern.
With so much geopolitical uncertainty and no idea what will happen around the globe day to day, watch your risk management and be careful.
