Good morning, Traders!
There are a lot of interesting ‘signals’ being conveyed across the markets today. Currencies appear ready to resume recent trends against the USD, as well as Gold. However, Crude Oils continue to trend lower. The global equity markets are treading water. There are signs of weakness across major stocks. Should today finish lower, this could indicate that the bear market isn’t quite ready to hang up its claws.
Here are my market picks for today:
XAUUSD (Gold), 4-hour, bullish
The 4hr Gold chart is consolidating after a strong close yesterday.
The 4-hour timeframe is in a tight range, while the Daily is in an uptrend, and I am waiting for price to break out to the upside if this trend is to remain intact.
With a stop-loss below the recent low on this chart, this could provide a healthy reward:risk trade should price decide to head back up to the highs circa 1805.
However, should price NOT break out of this range to the upside, and instead break lower, then the likely outcome is that Gold is not ready to resume its trend just yet.
Traders who take partial profits when price reaches 1:1 often enjoy few losses.
USDJPY, Daily, bearish
USDJPY has produced a bearish continuation signal on the daily chart.
My entry will be a few pips below the low of yesterdays red-sellers candle, and my stop-loss a few pips above its high.
My expectation is for price, if it breaks below yesterday’s low, to continue down towards the next major support level.
Taking partial-profits at 1:1 is a great way to mitigate risk, as well as targeting a realistic price point, such as a major resistance level, or 1:3 risk-to-reward point.
Happy Trading!
