MARKET COLOR FOR THE WEEK 30TH OCTOBER 2023
Oct 30, 2023 4:01 am
Hello ,
Happy New Week!
How has your trading performance been so far this month? I hope it has been profitable.
Remember, "In the world of trading, patience is a virtue. Trust in your analysis, stay committed to your strategy for the rest of the year, and let time be your ally."
Here at Value Flow Trading, this is our analysis for the week:
USD: Last week, the dollar was bullish alongside other safe havens as the market theme still leans toward safety.
Going forward this week, we expect the dollar to rally as the interest rate will be released on Wednesday, along with other economic data. Therefore, we are looking to go long on the dollar, which implies shorting its correlated pairs (GBPUSD, EURUSD) when we see a structure for a dollar long, as illustrated in the markup below.
JPY: Last week, the Yen was bullish, although it remained within a two-month range as the Bank of Japan intervened to defend against further bearish moves.
This week, we still expect a bullish Yen, as illustrated in the chart below, to continue its rally, which implies that Yen-correlated pairs should be bearish. However, the overall trend for the Yen is still bearish.
GOLD: Last week, the Gold Spot continued its bullish move after the pullback on Tuesday and closed the week bullish at the 2006 level.
Moving forward this week, we expect the Gold Spot to pull back to the 1980 level and then continue its rally, as illustrated in the chart below.
Therefore, this week, we are looking to short the Gold Spot as soon as our Value Flow Modelsยฎ align.
Make sure you trade cautiously and stick to your risk management plan as this week is full of high-impact news such as FOMC, NFP, and the release of other bank rates."
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Cheers and have a profitable week.
VFT Team