MARKET COLOR FOR THE WEEK 2ND OCTOBER 2023

Oct 02, 2023 10:54 am

Hi ,


Happy New Month and Happy new week!



Remember, "Success in trading is the sum of small efforts repeated day in and day out. Therefore, Make each trading day count in this last three month of the year"



Here at Value Flow Trading, this is our analysis for the week:


USD: Last week, we saw the dollar rally as expected, clearing the high of the year and forming the new high of the year on Wednesday.


Going forward this week, we expect the dollar to break that high formed on Wednesday and form a new high for the year after a brief retracement, as analyzed in the chart below. Therefore, we look forward to longing the dollar more before the short for the year start, which implies shorting its correlated pairs (GBPUSD, EURUSD) when we see a structure for the dollar rally, as illustrated in the markup below and start the short of the dollar when all structures align.


image



JPY: Throughout last week, the YEN was ranging against our BULLISH prediction for about a month now.


This week, we still expect a bullish YEN, as illustrated in the chart below, to clear the buy-side liquidity, which implies that YEN correlated pairs may be bearish. However, the overall trend for the yen is still a downtrend.


image



GOLD: Last week, we saw the Gold spot continue its downtrend, forming the low of the week on Thursday after selling off during FOMC on Wednesday and rallying on Friday.


Moving forward this week, we still expect the Gold spot to sell into the daily FVG. Therefore, this week we are looking to SHORT the Gold Spot as soon as our Value Flow Modelsยฎ align.


image


Make sure you trade cautiously and stick to your risk management plan as we expect PMI and NFP this week.


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Cheers and have a profitable week


VFT Team

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