Headlines:

• US data in the spotlight this week
• Time to go fishing
• Gold down slightly on the day, awaits US data for next move
• Switzerland Q2 consumer confidence -24 vs -26 prior
• SNB total sight deposits w.e. 10 May CHF 468.9 bn vs CHF 473.2 bn prior

Markets:

• AUD, EUR, and GBP lead, JPY lags on the day
• European equities mixed; S&P 500 futures up 0.2%
• US 10-year yields down 2.3 bps to 4.482%
• Gold down 0.7% to $2,343.91
• WTI crude up 0.8% to $78.85
• Bitcoin up 3.6% to $62,650

It was a quiet session and understandably so. All eyes this week are on the upcoming data from the US, with the main spotlight being on the CPI report on Wednesday. That being said, the PPI report tomorrow might take on more importance and have a larger impact than usual in that regard.

But for now, it’s all about the calm before the storm.

The dollar was little changed early on but is now mildly softer, although the changes are light. It comes as yields are also down slightly on the day. EUR/USD is up 0.2% to 1.0790 as it tests its 200-day moving average at the level with offers lined up near 1.0800 as well. AUD/USD was also down near 0.6600 but is now up to 0.6615, with eyes on key resistance around 0.6634-50 on the week.

Besides that, equities are looking a bit more mixed although US futures are holding on to slight gains for now. It’s still early in the week to be calling for anything, as it will all depend on the data in the next few days.

This article was written by Justin Low at www.forexlive.com.

Gold futures technical analysis and my trade plan – watch the video below, gold traders and investors

As I delve into the technical analysis of gold futures on the 1-hour time frame, my focus shifts towards identifying the most strategic buying opportunities and understanding the inherent risks associated with trading in this interesting gold market.

Strategic buy zone: A deliberate Approach

My analysis points towards the next potential buy zone situated between 2337.5 and 2341.5. This targeted range is not just a random selection but is based on the underlying market dynamics observed from yesterday’s trading activity, specifically yesterday’s value area high (VAH) and yesterday’s first upper standard deviation of the volume-weighted average price (VWAP).

Diversifying entry strategies to mitigate risk

By adopting a strategy where purchases are spread out within this defined range, I can effectively manage and reduce the risks associated with market volatility. In my opinion, distributing buys within this zone not only lowers the standard deviation of risk but also averages out the entry price, offering a more favorable risk-reward ratio.

So where and why is my stop for this gold Long trade

For my money, setting my stop-loss just below the daily EMA20 and just below 2333 is crucial, as this provides a safety net against potential downturns while still allowing room for the trade to breathe. My approach balances the risk of entering at the high end of the range—which could expose me to greater downside risk—and the possibility of missing the fill at the lower end, which could forego potential gains.

Trading within the potential bull flag pattern – the yellow channel is my gold technical analysis video above

The current market formation suggests a bull flag pattern, indicating a strong potential for upward movement. I’m targeting a rebound towards yesterday’s VAH and the VWAP’s upper standard deviation around 2341. This strategic placement not only aligns with technical indicators but also with the natural market movements observed in previous sessions.

Preparedness for market fluctuations

In case the market does not move as anticipated, I have prepared strategies to mitigate losses and potentially capitalize on unforeseen movements. If the market approaches the lower band of the buy zone and does not fill, I am ready to seek alternative entries at more advantageous prices, ensuring that I am not chasing the market but rather letting the opportunities come to me.

In summary, I am trying to fill a long position at a range of 2337.5 to 2341.5, always aware that trading carries inherent risks. For those interested in following more detailed analyses and market insights, a visit to ForexLive.com can provide additional perspectives and expert opinions. Trade at your own risk, and consider these strategies to potentially enhance your trading outcomes in the gold futures market. Visit ForexLive.com for addiional views.

This article was written by Itai Levitan at www.forexlive.com.

“It’s not whether
you are right or wrong, but how much you make when you are right and how much
you lose when you are wrong”. This quote from George Soros sums up perfectly
what trading is all about.

Beginner traders
don’t want to experience the pain of loss, so they search for trading systems
that have high percentages of success and regard the win rate as an important
metric. Well, the win rate it totally irrelevant. You can be profitable with a
30% win rate and unprofitable with an 80% one.

How? Well, if you have
8 small winners and 2 big losers, you might end up at breakeven or even down.
Risk management is key here. Most successful traders are right on half or a bit
more of their trades. For example, George Soros had a 30% win rate while the
Medallion Fund, the best money making machine in history, had 50.75%.

The goal of a successful
trader is to take good asymmetric bets and cut off those that are not working
out as expected. That’s it. It’s about trading well.

This wrong focus
on the win rate leads new traders to being scammed with trading strategies that
promise very high win rates. They jump from one strategy to another as soon as
those promises don’t meet their expectations. This is a losing and dangerous
cycle that ends up in a big waste of money and eventually a drop out of
trading.

Losses are a
natural part of trading, and you just have to know how to deal with them.
Unfortunately, in the beginning, you won’t have faith in your skills to
generate consistent positive returns, just because you’ve never done that. You
should just learn how to trade and focus on trading well rather than trading
for the money.

Once you achieve a
level where you see that you have positive returns over at least 6-12 months
horizon, you will start to gain some confidence in your abilities which will
help you immensely because you will know that even if you have short term
setbacks, your long-term success won’t be affected.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

This isn’t anything new as the presumption now is that they will have the election in October. But either way, it will definitely be in the second half of the year surely at this stage. Politics is going to be stealing the spotlight towards the end of the year with the US also set to head to the polls in November.

This article was written by Justin Low at www.forexlive.com.

Fundamental
Overview

Last Thursday, the
USD weakened across the board following the weak US
jobless claims figures where initial claims spiked to the highest level
since August 2023. Now, jobless claims are notoriously volatile, so that could
have been just a blip, but the weak consumer
sentiment report on Friday could be another supporting signal for economic weakness
ahead, although the data might have been skewed more by inflation worries.
Overall, in the short-term it wasn’t a real gamechanger and the next trend will
likely be set by the US CPI report due on Wednesday where hot data should send
the pair lower while soft figures could trigger a rally into the 1.10 handle.

EURUSD
Technical Analysis – Daily Timeframe

On the daily
chart, we can see that EURUSD is trading right around the key trendline
near the 1.08 handle. This is where we can expect the sellers to step in with a
defined risk above the 1.08 level to position for a drop into the 1.05 handle.
The buyers, on the other hand, will want to see the price breaking to the
upside to start targeting the 1.09 handle and eventually the 1.10 level.

EURUSD Technical
Analysis – 1 hour Timeframe

On the 1 hour chart,
we can see that we have kind of a range between the 1.0760 support
and the 1.0800 resistance. Given the lack of key economic releases today, we
can expect a rangebound price action until the key US data in the next couple
of days. A break above the 1.08 resistance supported by the data, should lead
to a sustained rally into new highs. Conversely, a break below the 1.0727 level
will likely take us to new lows with the 1.05 handle as the next target.

Upcoming
Catalysts

This week all eyes will be on the US CPI report due on
Wednesday, but we will have other notable releases throughout the week. We
begin tomorrow with the US PPI and Fed Chair Powell speech. On Wednesday, we
get the US CPI report and the US Retail Sales data. On Thursday, the focus will
be on the latest US Jobless Claims figures to see whether the last week’s numbers
were the start of a trend or just a fluke.

See the video below

This article was written by Giuseppe Dellamotta at www.forexlive.com.