A1 Trading Company

September 16, 2020

This Week's Trade Setups on USD Pairs and Indices

Frank Cabibi
GBP/USDBearish
XAU/USDBullish
SPX500Bearish

GBP/USD

GU broke a long term upward trend line on the daily and 4H charts which dipped price below key support. With poor Brexit news and an uncertain US economy, the pair is stuck near a decision point. The pair has been climbing for months after the crash in March, but now faces heavy resistance. Bad retail sales reports on USD is probably what's causing this rally up to resistance, but my overall sentiment remains bearish, and a possible future lower low will come out of this on the 4H chart.

Indices will have a volatile day as the Fed chairman is set to speak at 2:30 EST with FOMC economic projections at 2:00. The SPX still hovers below resistance on the 4H chart after its steep decline starting from 2 weeks ago. Today will provide further insight on the market's direction from now up until the election. The 200 SMA on the 4H chart suggests that price is very uncertain on where to go. It seems to be taking turns stabilizing just under or over the moving average as investors wait for the FOMC projections. I remain bearish for the week unless price breaks over that resistance level around 3430s.

After breaking out of former wedge, gold makes higher lows on the 4H chart and hovers around the 200 SMA. In the long run, gold outperforms the benchmarks, but still dips a little with each market retracement in the short run. Big money and analysts think that this metal has the potential to climb as US economy and USD decline. I remain bullish on this metal and believe that a test at 1990s would be likely in the next few weeks. However, poor US economic data could hinder the stock market which could adversely affect gold. The dips are not as momentous and recoveries outperform indices.


Disclaimer:

Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.

Featured Pic: https://responsive.fxempire.com/width/600/webp-lossy-70.q50/fxempire/2019/05/U.S.-Federal-Reserve-FOMC.jpg

A1 Edgefinder

All-In-One Fundamental Dashboard!
Simplify your fundamental analysis with our all-in-one fundamental dashboard! 
Discount code: READER

Learn more

My Crazy Trade On Gold: Up $8000

Hey Traders! This week has been wild for Gold! Thanks to insights from the EdgeFinder, I've been in a trade on XAUUSD since May 3rd. Initially, I jumped in due to weak jobs and PMI data, sticky inflation, and solid support/market structure. Here’s a quick look at my gold trade: Entry Recap: On May 13th, […]

Read More
Is Gold the Buy of 2024?

Rates move lower after the BoE announced their latest monetary policy report to keep rates unchanged at 5.25%. Unemployment came in higher this morning with the 30-year bond auction coming up Thursday afternoon. In the midst of a slow news week in the US, gold is sitting at a very favorable position according to the […]

Read More
Yields Fall Ahead of Earnings

More earnings reports come out this week is causing an inflow of buyers in the equities market while yields begin the week on a decline. Last week's Fed meeting showed up as "less hawkish" than investors expected causing risk appetite to increase at the start of the summer months. EdgeFinder Analysis As we come off […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
Signals
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
homesmartphonelaptop-phonemenumenu-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram