Welcome to this week’s Market Blast Fundamentals.
I’m Brad Alexander and on behalf of Valutrades today we will take a look at Gold (XAUUSD), USDJPY, NZDUSD and GBPUSD.
We are seeing a bit of USD strength against most other currencies except the GBP which, as we can see from the chart, might give us good opportunities for range trading but watch out for news on COVID restrictions which may be extended in the UK.
You may wonder why we spend so much time looking at the Economic Calendar, so, as an example, let’s take a look at the last US Non-Farm Payrolls which gave the market a disappointing number.
Basically, when we trade Economic News, we look for price action moves against the trend, then open a position, in the same direction as the trend.
In the case of the last US Non-Farm Payrolls, the value of the USD fell and we were watching pairs with good trends like USDJPY, AUDUSD, and NZDUSD.
We had to be patient and wait for price to reach and reverse from the respective trend line a few days later, but you can see the results…a nice “Buy” trade on USDJPY, and a great “Sell” trade on pairs like NZDUSD and AUDUSD.
We have put a link to our video on “Economic News Trading” at the end of this video.
Also, we can see that we have quite a few opportunities for similar trades this week including Interest Rate decisions from the US, Switzerland, and Japan.
Don’t forget, you can also trade Gold against US Economic news and we see XAUUSD at a key level of support.
We will look at Gold from the Technical perspective tomorrow.
Thanks for watching and don’t forget to subscribe to our YouTube Channel and register on the Valutrades website to get notifications on new content as it happens.
That’s all for now. Happy trading with Valutrades and we will see you tomorrow.
CFDs and FX are leveraged products and your capital may be at risk.
Disclaimer:
The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.
Comments