MARKET COLOR FOR THE WEEK 16TH OCTOBER 2023
Oct 16, 2023 4:01 am
Hi ,
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 by putting in more effort."
Here at Value Flow Trading, this is our analysis for the week:
USD: Last week, we saw the dollar short into our Point of Interest (POI) and retrace back to the buy side after the CPI data was released. Also, with the ongoing Israel war, which in turn changed the theme of the market into "Run to Safety," the dollar is one of the safe-haven currencies.
Going forward this week, we expect the dollar to first go long and clear the last week's high, then sell into the FVG and order block, as analyzed in the chart below. Therefore, we look forward to shorting the dollar for the week, which implies longing its correlated pairs (GBPUSD, EURUSD) when we see a structure for the dollar short, as illustrated in the markup below.
JPY: Last week, we saw the Yen bullish as predicted but couldn't clear the buy-side liquidity.
This week, we still expect a bullish Yen, as illustrated in the chart below, to clear more of the buy-side liquidity, which implies that Yen correlated pairs may be bearish. However, the overall trend for the Yen is still a downtrend.
GOLD: Last week, the Gold Spot was heavily bullish as predicted as a result of the Israel war.
Moving forward this week, we expect the Gold spot to pull back to the daily breaker block, then continue its rally, as illustrated below.
Therefore, this week, we are looking to LONG the Gold Spot as soon as our Value Flow Modelsยฎ align.
Make sure you trade cautiously and stick to your risk management plan as we expect some high-impact news this week.
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Cheers and have a profitable week
VFT Team