Now that September is here we will start to see a lot of money that has been sat on the side finally go to work as fund managers will need to show returns for their clients. These large funds will add to the liquidity in the market, and the more liquidity, the more volatility.
What we are looking at is an overall weak dollar but in the short term, potentially over this month to see the dollar slightly strengthen. This would lead to a short term decline in EURUSD and GBPUSD of course gold would also decline as gold and the dollar trade in opposite directions.
What we want to be careful of is the market environment that can have unexpected moves, this is due to all the noise in the market with the elections and protests and of course Covid-19 which is still pushing businesses into the water. This means we need to be extra careful about our risk plan and money management plan. If you’re a new trader you should limit your risk to 1% of your account and if you are experienced, the risk should still be limited to 2%.
Our target is 1.1755
We can see that over the last couple of weeks EURUSD has been pushed higher and we believe this has drawn in the interest of buyers but those buyers could be taken out over the course of this week as there have been no sharp declines to balance out the price action. So expect a weaker EUR as the dollar looks to gain short term.
Our target is 1.3300
The short term target in GBPUSD is our first point that we would like to see hit to confirm that we will trend lower in this pair which will then allow us to hit our other lower targets we have been seeking in this pair, overall this could provide daily binary options trades with the end of day expirations once we hit the outlined target for the today.
Our target is 1.3168->1.3271
This pair has continued to decline despite breaking all its downside targets which makes it suspicious as to why it’s in such a hurry to reach the lower prices and is yet to run higher to balance out the market. Therefore we expect an aggressive run this week to correct the large decline that is a bear trap, locking in traders to sell in the market.
Our target is 1900.70
Too many people are trying to rush into gold right now on the suspicion of a dollar collapse, but history has shown us time and time again, that when too many rushes into the same trade even if it makes sense, it never works out well. So stay alert for gold we are long term bullish but we expect our target to be hit and if this gets hit the next target is 1850.00