Welcome to another live trading session. In today’s session we went over the status of the four trade setups that were covered in yesterday’s live session. We also spent some time discussing the currently fundamental drivers of the mixed sentiment in the US Dollar.
During yesterday’s live session, we did a complete technical analysis of NZDUSD, EURJPY, USDCHF, and XAUUSD. The entry criteria for all four setups was met in the early hours of the London session. Currently, NZDUSD and USDCHF are up +55 pips. As both are swing trades, we expect further downside to continue.
Conflicting fundamentals have taken a toll on the precious metal XAUUSD (Gold), which has made it harder to analyze. The new year kicked off with a huge military response by the Iranian regime. This retaliation caused XAUUSD to spike 400 pips to the upside. Donald Trump’s decision to deescalating the situation brought the metal back to reality. Phase one of the trade deal will be signed tomorrow and is good for both the Chinese Yuan and the US Dollar. However, earlier this morning, the US released subpar CPI data which is a key metric for inflation. Our technical analysis still favors a short, but there is enough chaos to cause some doubt in this belief.
As expected, this week resembles normal trading conditions and is the main reason why we were able to enter four trades already. We do take a strong stance against overtrading and we will consequently think twice before entering another trade. The trading week is still young, and luckily for us, all we have to do is let our trades play out. We do impactful fundamental releases every day of this week, so please be mindful of that. With that being said, I will see you all tomorrow for another live trading session. As always, be safe and trade responsibly!
Check Out Yesterday’s Blog Post: January 13th, 2020
