Hello everyone, as we step into the afternoon of January 2, 2024, it's time to delve into the dynamics of today's forex market. With the current account net value standing at an impressive $700,007, there's a lot to unpack in today's trading landscape.
Current State: The US Dollar Index is hovering near recent lows, suggesting a high probability of a rebound. This marks the third day of what appears to be a turnaround from the bottom.
Strategy: Traders should focus on weekly and daily charts for cues. The upcoming release of significant economic data, especially the non-farm payroll data, is likely to influence the index's movement.
Action: Long positions on dips might be considered, particularly around the 101.2 mark, as the dollar exhibits signs of a rebound.
Current State: Gold prices are near historical highs, and the recent two-day decline may indicate a short-term double-top pattern. This points to a potential initial rebound followed by consolidation within the previous resistance zone.
Strategy: Short-term movements suggest caution. A rapid stabilization and subsequent rise could dissolve the current structural pattern. To resolve this pattern, there's only one trend: rapid stabilization and rise. After stabilizing, it can recover the previous two declines. This will naturally dissolve the structural form.
Action: In terms of gold, if I were to make a personal assessment for the intraday, I would lean towards being more inclined to low longs. For intraday trading, a short position around 2080 might be worth considering, as this aligns with the expected local double-top formation.
Current State: Crude oil shows signs of having bottomed out recently, with a pattern of rebound, adjustment, and another upward movement.
Strategy: The market sentiment is bullish, strengthened by geopolitical factors like the situation in Iran and the Red Sea issues.
Action: Buying on dips is advisable. A long position around the 71.9 level could be a strategic entry point, depending on market openings and trends. However, due to the current external situation, such as the involvement of Iran and the issue of the Red Sea, crude oil is currently more biased towards the bullish side in terms of news sentiment.
Current State: The euro displays a bearish trend with three consecutive bearish candles on the daily chart.
Strategy: The euro requires close observation for further adjustments.
Action: For intraday trades, short positions might be considered if the euro rebounds, especially around the 1.105 level.
Current State: The pound, moving in tandem with the euro, shows signs of short-term adjustment but maintains an overall upward trend.
Strategy: The market is not linear and exhibits oscillations; hence, directionality can be complex.
Action: Intraday traders should consider short positions on rebounds, particularly around the 1.275 level against the US dollar.
In summary, the forex market on January 2, 2024, presents various opportunities across major currencies. The US Dollar Index shows signs of a rebound, making long positions on dips a viable strategy.
Gold's potential double-top pattern suggests short positions on rebounds, while crude oil's bullish sentiment favours long positions on pullbacks. The euro and the British pound both present opportunities for short positions on rebounds at specific levels. As always, market trends require careful observation and strategic planning to capitalize on potential movements.
Risk Warning and Disclaimer: This article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform. Trading Contracts for Difference (CFDs) involves high leverage and significant risks. Before making any trading decisions, we recommend consulting a professional financial advisor to assess your financial situation and risk tolerance. Any trading decisions based on this article are at your own risk.
MicroStrategy (MSTR) Stock Forecast: MicroStrategy Inc. (MSTR), a prominent business intelligence company, has gained considerable attention in recent years, primarily due to its aggressive investment strategy in Bitcoin.
CrowdStrike Stock Price Prediction: CrowdStrike Holdings, Inc. (CRWD) has become a significant player in the cybersecurity sector, known for its innovative approach to threat detection and response.
Delta Stock Soars 12%: Delta Air Lines (DAL) has recently experienced a significant surge in its stock price, climbing by 12% in a single day.
set cookie
