This week will be a light trading week, as the first week of the month tends to be slow and unpredictable. Consider following the signals and studying them this week, we will be expecting a strong dollar and this should result in weakness in foreign currencies.
So why do we seem to trade dollar-based currencies? Simply because the dollar remains the world reserve currency and therefore the strongest in trading edge based on world events.
This year we don’t believe the surprises have stopped and see likely economic recessions yet to come.
We expect downside this week down to 1.0830
We see downside for the week for this pair as well targeting 1.2322
For now, with a stronger dollar, we have had to shift our analysis from buy to sell to accommodate any downside in the price of gold. Although we are seeking 1750.00 we must acknowledge that there could be a short term decline to 1640.00
With the short term strengthening in the dollar, we could see this pair push a little higher this week