MARKET COLOR FOR THE WEEK 23RD SEPTEMBER 2024
Sep 22, 2024 5:00 pm
Hello ,
Happy New Week!
How was your trading last week? It was a defining moment in the industry, especially with the Federal Reserve's rate cut hitting the market.
Remember, "Profitability in this industry is achieved when opportunity meets preparation and is fueled by decisive action."
Here’s our analysis for the week ahead at Value Flow Trading:
USD: Last week, the dollar was bearish due to the Federal Reserve's rate cut. There had been a lot of speculation about this rate cut, with many traders expecting it earlier in the year, but it finally happened this quarter.
Looking ahead, we anticipate a continued weak dollar as the market digests the impact of the rate cut, as illustrated in the chart below. This suggests LONG positions on correlated pairs like GBPUSD and EURUSD.
JPY: Last week, the Yen was bearish as analyzed but has yet to trade into our Point of Interest (POI).
This week, we expect further selling of the Yen before it resumes its bullish trend, indicating more BUY opportunities on Yen-correlated pairs before the sell-off, as shown in the chart.
GOLD: The Gold Spot was heavily bullish, creating a new all-time high as it returns to its price discovery phase. The precious metal appears to be the most preferred safe haven now compared to the Dollar and the Yen.
Moving forward, we expect a slight pullback on the Gold Spot, followed by a continuation of the bullish trend, as illustrated in the chart below, especially as our Value Flow Models® align.
Remember to always trade cautiously and implement proper risk management strategies.
Wishing you a profitable trading week ahead!
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Cheers!
VFT Team