{"id":218382,"date":"2022-12-05T10:14:33","date_gmt":"2022-12-05T10:14:33","guid":{"rendered":"https:\/\/www.forexmentorpro.com\/blog\/?p=218382"},"modified":"2024-05-24T18:16:24","modified_gmt":"2024-05-24T17:16:24","slug":"dollar-weakness-continues","status":"publish","type":"post","link":"https:\/\/www.forexmentorpro.com\/blog\/dollar-weakness-continues\/","title":{"rendered":"Dollar weakness continues"},"content":{"rendered":"

Hi everyone,<\/p>\n

This week we saw the USD pullback many of us were expecting. In my weekend analysis form two weeks ago I showed how there were a whole bunch of clues that this was very likely. Most of the majors have now moved to big areas of support\/resistance…even on positive USD news with Friday’s NFP figures which revealed that 263k jobs were added to the US economy in the last month. The average hourly wage growth also came in at twice the expected figure. This US labour market resilience could still pay a pivotal role in whether the FED decides to slow down the pace of interest rate increases.<\/p>\n

In the other news event, the protests in Chinese around the government’s covid policies, seems to have forced the ruling party to slightly pivot. President Xi Jinping told European Council President Charles Michel at their meeting in Beijing on Thursday, that the less-lethal omicron variant is now the prevalent Covid-19 strain in China. If these statements are confirmed, this would mark the first time Xi has publicly acknowledged that the virus is weakening. It also suggests the leadership in China could be moving toward loosening its strict \u201cCovid Zero\u201d policies. This could support a strengthening of the AUD and NZD especially.<\/p>\n

EUR\/USD 5min chart showing NFP news;
\nWhy it’s dangerous to trade around big news events.<\/p>\n

\"\"<\/p>\n

Let’s have a look at some key charts;<\/p>\n

DXY CHART;
\n<\/strong>A break and close below the 200. The next big area of resistance is the 103 level.\u00a0
\n<\/strong>
\n\"\"<\/p>\n

Energy & Metal Prices;<\/strong><\/p>\n

\"\"<\/p>\n

\"\"<\/p>\n

Gold;
\n<\/strong>At the key 1800 level now. Looks very bullish to me now. USD weakness will be key for further upside though.\u00a0\u00a0
\n<\/strong>\"\"<\/p>\n

Oil;
\n<\/strong>Formed a double top and broke lower. Looks to be forming a lower high now.
\n\"\"<\/p>\n

Bitcoin;
\n<\/strong>Still in a tight range. There seems to be a bit<\/em> of stability flowing back to the crypt market after the FTX disaster.<\/p>\n

\"\"<\/p>\n

+++++++++++++++++++++++++++++<\/p>\n

You can also follow us on Twitter https:\/\/twitter.com\/marcwalton<\/a><\/p>\n

+++++++++++++++++++++++++++++<\/p>\n

Red flag news:
\n<\/strong>Watch out for CAD interest rate and US inflation news this week.\u00a0
\n<\/strong>
\n\"\"<\/p>\n

 <\/p>\n

++++++++<\/p>\n

Trade for clients & receive a substantial profit share<\/p>\n

If you want to receive a substantial profit share you only need to make 3 to 5% per month. You can find a copy of the brochure here: Trade for Clients<\/a><\/p>\n

++++++++++++++<\/p>\n

MAJORS<\/strong><\/p>\n

EUR\/USD: A grade short from 1.114.\u00a0 If it breaks 1.0580, I’d look to long.<\/p>\n

USD\/CHF: Short from 0.9480.<\/p>\n

GBP\/USD: A grade short from 1.2930. If it breaks 1.2344, I’d like to long.<\/p>\n

AUD\/USD: Short from 0.6840. If it breaks higher, I’d short from 0.7162<\/p>\n

NZD\/USD: Short from 0.6650. I’d like to long from 0.6360 if we get a pullback.<\/p>\n

USD\/CAD:\u00a0 A grade long from 1.31500<\/p>\n

USD\/JPY: Long from 131.540. A grade long from 118.800<\/p>\n

CROSSES<\/strong><\/p>\n

EUR\/GBP: I’m looking for a break and pullback to 0.8570<\/p>\n

EUR\/NZD: Short from 1.6640.<\/p>\n

AUD\/NZD: Short from 1.0770.<\/p>\n

AUD\/CAD: Short from 0.9250.<\/p>\n

GBP\/AUD: I’m looking for a break and pullback to 1.8160 in order to long. If I get bearish sign at the current level I’d look to short (see video)<\/p>\n

GBP\/NZD: Short from 1.93800.<\/p>\n

GBP\/CAD: Short from 1.66800<\/p>\n

GBP\/CHF: Short from 1.16100<\/p>\n

As always, remember correlation! -Especially when taking more than one JPY trade!<\/p>\n

We are NOT a \u201ctipping service\u201d our aim is to teach you how to trade for yourself.<\/p>\n

\"\"<\/a><\/p>\n

Watch the video below for more detailed explanations of this week\u2019s analysis and trade plan (click the 4 arrows bottom right to view full-screen):<\/p>\n