Welcome to another live trading session. In today’s trading session, we went over key fundamental events that are weighing down on the Forex market. We then went over some trade setups that could be on the table for this week.
Currently, most markets are classified as bear markets. We are currently seeing major sell-offs, particularly with the Australian Dollar. The Australian Dollar is heavily influenced by the Coronavirus scare due to its close relations with China. The US had better than expected ISM Manufacturing numbers released today, which in turn resulted in a stronger US Dollar to open the trading week. Therefore, this week, we will continue to short AUDUSD to new lows for 2020.
Read: The Coronavirus and The Forex Market
The United Kingdom had officially left the European Union this past Friday. Now there will be ongoing trade talks between the E.U and the U.K, which can last up to several weeks or months. This continued dialogue will cause momentary weakness in the Pound as both sides are destined to impose their will. This week, we seek to short GBPUSD and GBPJPY, given that our entry criteria is met.
If market conditions are not crazy enough, we have the Non-Farm Payroll release later this week. The current forecasts predict better results than last month and thus indicating a stronger US Dollar. This all falls in line with our Bold Predictions for 2020. As always, be safe and trade responsibly!
Check Out Friday’s Blog Post: January 31th, 2020
