EUR/USD – EURO/DOLLAR PULLS BACK TO BUYING ZONE
The upward momentum on the euro/dollar continues to remain intact. During trading session last week we saw the pair pullback to support at 1.2259 and bounced higher on the daily chart time frame. This presents trading opportunities to traders not already long on the euro/dollar, to join the upward steam. Traders may therefore look to go long on the euro/dollar this week as price trades a little above 1.2259 near term support level, and place their stop below 1.2200. A decline in price below 1.2200 will nullify this trading plane and we will anticipate that price will find support above 1.2070.
EURO/DOLLAR DAILY CHART
USD/JPY – DOLLAR/YEN CONTINUES TO TRADE LOWER
Bears continue to show strength in the dollar/yen market, as price continues to surge lower since December 2017. There is currently no strong reversal indication, hence we shall be bearish on the dollar/yen this week as we look to short strength to join the downward bandwagon on retracement to the 12 period EMA on the daily chart, preferably within 107.345 -108.375 near term resistance zone. A price rally beyond 108.375 will render this trading plan invalid for this week.
DOLLAR/YEN DAILY CHART
XAU/USD – SPOT GOLD SHOWS STRONG BULLISH BIAS
The upward momentum of spot gold continues to remain intact. Price is currently showing a pullback on the daily chart and we do not know how far this pullback will go. Because the 4 hour chart is trending lower, we shall be patient and wait for the direction of the 4 hour chart to align with that of the daily chart and look for strong bullish signal(s) on the 4 hour chart to go long on spot gold this week. This is primarily because we are aiming at trading in the direction of the daily chart. Reversal on the 4 hour chart is more likely to occur within the support zone 1309.15 – 1303.23. However, a strong daily close below 1303.23 will render this trading plan invalid
SPOT GOLD DAILY CHART
By E.O. ESSIEN
E.O Essien is an Associate Financial Economist, author, currency trader, and a private trading coach. He can be contacted via email at elijahotoo.eo@gmail.com or on +233240080104/+233203656160.
