MARKET COLOR FOR THE WEEK 14TH JANUARY 2024

Jan 14, 2024 8:30 pm

Hi ,


Happy New Week!


I hope your focus on your trading goals for this year is still intact.


Remember, "The financial markets reward those who dare to dream big and act boldly. Trade with vision, stay ambitious, and let your aspirations drive your success."


Being the first trading month of the year, there is still some indecision in the market regarding its direction, and the trading volumes are not very high.


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


USD: Last week, the dollar was range-bound, regardless of the CPI and PPI data releases. This indicates that there is still not much volume in the market, as expected.


Going forward this week, we anticipate a slight pullback and then a continuation of the bearish trend for the dollar, as illustrated in the chart below. Therefore, we are considering shorting the dollar this week, implying long positions on its correlated pairs (GBPUSD, EURUSD) when a structure for a dollar short is confirmed, as illustrated in the markup below.


image



JPY: Last week, the Yen was bearish. This was more of a pullback after we observed a structural shift on the weekly time frame.


This week, we anticipate a bullish Yen, as shown in the chart below, suggesting that Yen-correlated pairs might be bearish.


image



GOLD: Last week, the Gold Spot traded within a range as a result of the dollar's price action.


However, the overall trend of the Gold Spot still remains bullish.


Therefore, this week, we are looking forward to longing the Gold Spot as soon as our Value Flow Modelsยฎ align.


image


Remember to trade cautiously and stick to your risk management plan as the market begins to pick its direction.


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Wishing you a profitable trading week ahead!


VFT Team




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