Good afternoon, everyone. As we navigate through January 10, 2024, it's essential to maintain a balanced perspective while discussing the current foreign exchange market. Yesterday, the net profit stood at approximately $1,000, bringing the current net value to $743,000.
Today, we'll delve into the market's recent activities and outline some potential strategies without advocating for any specific financial decisions.
In yesterday's trading, we observed a profitable short position in crude oil, which yielded over $7,600. Conversely, a short position in the British Pound, unfortunately, hit the stop loss. These outcomes combined resulted in a net profit of slightly over $1,000.
The market has been experiencing a consolidation pattern over the last few days, particularly after the non-farm payroll data release last Friday. This consolidation phase has made trading conditions challenging, with today's market expected to continue this trend.
In a sideways market, both long and short positions can have their merits. It's crucial to approach such a market with a balanced view, acknowledging the potential in both directions.
For the U.S. dollar, there appears to be a slight bias towards the upside. A strategy to consider is taking long positions on dips, particularly around the 102.3 mark.
Gold's recent movements show a pattern of rise and retreat, with the current position seeming somewhat weak. With low chances of a significant breakthrough before tomorrow's data release, the focus for short positions could be around the 2020 level. Conversely, there could be potential for long positions if the price does not break previous low levels around 2020 and 2018.
Crude oil has displayed fluctuating trends, alternating between bullish and bearish movements. Recent news about Russia's production cuts and the U.S.'s strategic reserve considerations are influencing the market. The current strategy suggests optimism for an upward trend in crude oil, with a focus on buying on pullbacks, especially around the 71.7 area.
The euro has formed a small bearish candlestick and is at a crucial position. With the market awaiting CPI data, the euro is likely to continue consolidating. The strategy here is to consider shorting on a rebound, particularly around the 1.096 area.
Similar to the euro, the strategy for the British Pound is to continue shorting on rebounds, targeting the high point from last night, around 1.274.
The market is currently in a consolidation state, with tomorrow's CPI data likely to provide a clearer direction. As the market situation unfolds, it's advisable to stay informed and adapt strategies accordingly. Wishing everyone successful and prudent trading.
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