EURUSD – EURO VS US DOLLAR
Over the past four weeks Euro-Dollar has been unable to trade above 1.2500, a level the pair plunged below on February 16th. During trading session last week, the pair made a rally above key level 1.2329, but could not be sustained above this level as price retraced back below before the close of the week.
Our plan for this week is that, we are looking to sell short Euro-Dollar, taking 1.2329 resistance level as reference. We shall look to place a stop anywhere above 1.2346 – beyond which we will scratch this trade and get out of the market. The profit potential for this trade may be up to 1.2163, which is about two times our risk.
AUDUSD – AUSTRALIAN DOLLAR VS US DOLLAR
Last week we saw the Aussid-Dollar recoil from its upward stretch to trade downwards as the pair failed to rally above key resistance zone 0.7876 – 0.7914. This calls for a bearish bias on Aussid-Dollar, and we will be looking to sell short this pair on retracement within the zone 0.7739 – 0.7778 on either the 4 hour or 1 hour chart. This change in momentum appears to be on a fresh start on the 4 hour chart.
Hence, traders who get the opportunity to get on board by selling short Aussid-Dollar should be prepared to hold on
tight for a pretty long ride.
AUDJPY – AUSTRALIAN DOLLAR VS JAPANESE YEN
The Aussid-Yen also saw a recoiling from resistance zone 84.002 – 84.353 on the 4 hour chart during trading session last week. This is an indication of a continuation of the downtrend we’ve seen on the Aussid-Yen pair since January this year.
The major directional bias of this pair is clearly down, and we shall be anticipating to sell strength upon retracement within the zone 82.010 – 82.484 and place a stop above the high of this zone.
XAUUSD – SPOT GOLD VS US DOLLAR
During the earlier part of trading session last week, we saw bulls battle bears strongly in the spot gold market, pushing prices higher above significant level 1321.85. But the strength of bulls could not endure, as they were overpowered by bears during the later part of trading session last week.
In view of this, we shall take a bearish stance on spot gold and anticipate to sell short within the zone 1316.11 – 1321.85 and place a stop anywhere above 1323.21, beyond which this trading plane will be rendered invalid.
E.O Essien is an Associate Financial Economist, author, currency trader, and a private trading coach. He can be contacted via email at email@example.com or on +233203656160, +233240080104