Global Indices Sliding? Silver XAGUSD Breaking Descending Triangle.
Welcome to today’s IVG Market Blast.
Today, we will take a look at Forex Trading on GBPUSD, Silver, XAGUSD, Gold, XAUUSD, the Nikkei225, the FTSE100, the DJIA, the NASDAQ, and the S&P500.
Just a reminder that these videos are only an observation of current market conditions, and these are not to be considered as trading advice.
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We saw big moves in last Friday’s Non-Farm Payrolls, but is that the end of the story?
Maybe not, so let’s take a look.
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For example, on the S&P500, we see price action rising, but the overall trend is bearish.
We will be watching this upper trend line, the overbought stochastic oscillator, along with news on the Iran war and the economic news, to see if the Fed may, in fact, have to raise interest rates because of inflation.
Let’s face it…even the Fed can no longer call the inflated price of gasoline “transitory” as there is no end in sight to the Iran conflict.
We are seeing a very similar picture on the NASDAQ.
And the Dow Jones Industrial Average, which has seen an even steeper drop out of this descending triangle.
If we look at longer time frames like the daily charts, we see that price action has broken lower than the lower trend lines on all the major indices, like this on the Dow Jones.
And this on the NASDAQ.
We have a slightly different story on the FTSE100 with price action breaking through the upper trend line and trying to break resistance.
On the daily chart, we see a descending triangle, so price action could go either way.
And, finally, on Japan’s Nikkei225, we see a clear downtrend and an overbought stochastic oscillator.
We have to zoom way out on the Gold daily chart to see where price action is going next and if USD is going to get any stronger.
We see key levels below at $4,000 and $3,900, but keep an eye on next week’s interest rate decision by the Fed and the Iran war, which could definitely stoke inflation and have USD go even stronger.
Silver, as well, has reacted negatively to the USD strength and price action is trying to break support in this multi-month descending triangle.
GBP has been showing strength against other currencies lately, so when we get 2 currencies that are equally strong or equally weak, we always look for range trading opportunities.
2 indicators that work well together here are Bollinger Bands and the stochastic oscillator.
Also, if price action trends for a while, the 20-period moving average, which is the core of Bollinger bands, acts as a dynamic line of support and resistance.
I encourage you to check this out on as many pairs as you like and to backtest.
That’s all for now.
CFDs and FX are leveraged products, and your capital may be at risk.