The USD closes the week being sold and gold moved closer to $1300 oz.
The USDJPY has not been over the 110.00 yet this year. It rose early in the U.S. session to 109.95 and ran into sellers and started to reverse lower. A short was taken risking 6 pips for a potential 49 pips to our daily target at 109.40.
Price first moved down to close beneath its Asian high and we allowed for a retest of this level. Price moved lower and paused at yesterday’s high, then dropped further. Buyers emerged as evidenced by the long lower wick candle as it tried to move to its Asian session low. We moved our profit stop down and the next candle closed our trade.
With the USD being on its back foot and gold moving up strongly, it was interesting to see the equity markets and U.S. 10 year yield move upward. Perhaps a bigger surprise has been the strength of the GBP this week…although I haven’t found a comfortable entry yet to go long. The sentiment this week is positive but sentiment can change quickly.
Next week will be interesting as we approach the deadline for the U.S. -China trade talks followed by NFP on Friday.
Good luck with your trading and enjoy your weekend!
