Hi ,

Happy new week!

Trust that the Israel-Hamas war is not negatively affecting your trading psychology due to the market imbalance?

Remember, "Trading is not about being right all the time; it's about managing your losses and maximizing your wins."

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

USD: Last week, we saw the dollar range-bound as the precious metal (GOLD SPOT) became the most preferred safe haven due to the ongoing Israel war, which changed the theme of the market into "Run to Safety."

Going forward this week, we expect the dollar to first go short into the daily Order Block (OB) then rally into the weekly Fair Value Gap (FVG) as analyzed in the chart below. Therefore, we look forward to longing the dollar for the last leg of the year, which implies shorting its correlated pairs (GBPUSD, EURUSD) when we see a structure for the dollar long, as illustrated in the markup below.

JPY: Last week, the Yen still remains in a range, as it has for a long while now.

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 maintained its bullish trend as predicted due to the Israel war.

Moving forward this week, we expect the Gold spot to continue to go long into the daily OB, then pull back into the flip zone and continue its rally, as illustrated below.

Therefore, this week, we are looking to long the Gold Spot as soon as our Value Flow Models® 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