In today’s live trading session, we went over the US Dollar Index (DXY) and several other pairs to determine which trades would be taken this week.
The DXY is continuing its downtrend as Coronavirus cases continue to grow rapidly in the United States. This morning Congress began to negotiate the next stimulus package, as record unemployment has prevented many Americans from getting by. The next stimulus package could range from 1.3 trillion to 3.00 trillion dollars. It’s not too clear what the DXY would do in this situation, but we do expect a volatile move once a deal has been reached.
We spent much of last week waiting for Gold to break above 1815 to go long, but there was just not enough buyers. This week seems far different as price has closed above this level on the smaller timeframes. Once we get price action confirmation on the 4hr timeframe, we will be looking to enter. In addition to longing Gold, we are also looking to go long for Silver. This precious metal has recently cleared its high made in September 2019, and it could extend higher with the weaker US Dollar.
As Monday’s tend to be our wait and see days, we aren’t really looking to rush into anything just yet. We will let things develop and start preparing for entries later during the London session. Also, most of the high-impact fundamental news is during the latter half of the week, Therefore, we may see the markets consolidate until then. As always, be safe and trade responsibly!
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