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Dear Traders,
It’s time to prepare for another action-packed trading week starting February 10th! Last week’s major event was the NFP report, which revealed a slowdown in job growth. Now, the spotlight shifts to inflation, with the upcoming CPI announcement likely to be the next big catalyst for market moves. Let’s dive deep into the charts and uncover where the best trading opportunities are setting up.
The USD Index (DXY)
The USD index has been pushing higher, but a deeper correction may be on the horizon before its next bullish leg. On the monthly time frame, buyers remain in control, with strong support at 107.00 and major resistance near 110.00 based on multiple Fibonacci extensions. However, a bearish divergence on the histogram suggests that price may need to pull back before resuming its uptrend. If DXY corrects, expect 107.00 as the first downside target, followed by 105.30 and 103.90 if sellers gain momentum. On the hourly time frame, buyers are attempting to regain ground. If price pushes beyond 109.64, the next upside targets will be 114.00-115.00, but a correction first remains the most probable scenario. However, there’s a secret level that institutions are watching closely, and if price reaches it, we could see a sudden and explosive move…
Click to find out exactly where it is.
Crude Oil
Crude Oil has been showing signs of exhaustion at key levels. After touching the 50% Fibonacci retracement on the weekly chart, the market reacted at support, but buyers have yet to confirm a sustained rally. There is bullish divergence, suggesting a potential bounce, but the real test lies in reclaiming the 73.60 level. If buyers manage to hold above this, the next upside targets are 74.00 and 76.00. On the flip side, a failure to hold above 71.90 could result in a breakdown towards the $70 mark or lower. But there’s a hidden liquidity zone that big players are targeting right now. Will they push oil into a massive breakout or trigger a major reversal?
Click to uncover this key level before it’s too late.
EURAUD
The EURUSD pair is currently rejecting a significant resistance level, suggesting that sellers are regaining control. On the monthly time frame, price is struggling near a long-term resistance zone, while exhaustion signals are appearing on momentum indicators. The weekly and daily charts confirm a bearish bias, with multiple Fibonacci extensions pointing to 1.5900 as a key downside target. Although price is currently pushing lower, a retracement towards 1.6490 would provide a better risk-reward opportunity for entering short positions. There’s one critical pattern forming on the lower timeframes that could determine the next 200-pip move…
Click to see it before it plays out.
GBPCAD
GBPCAD is forming a bearish setup with strong downside momentum. On the three-month timeframe, price has reached a crucial resistance zone where buyers appear exhausted. The daily and 4-hour charts show that momentum has turned bearish, confirming that sellers are in control. The next major target sits around 1.7335, but instead of entering immediately, waiting for a retracement towards 1.8000 would provide a much better risk-reward opportunity for short entries. But what happens if price fails to retrace? There’s a high-probability alternative trade setup that could catch an even bigger move…
Gold (XAUUSD)
The Gold (XAUUSD) market is currently setting up for a short-term pullback before resuming its long-term bullish trend. A rising trendline has been broken, and bearish divergence suggests that the market could drop before buyers regain control. The ideal short-term trade would be to wait for a pullback to 2868-2871, then look for a move lower towards 2842. This level is critical because it is where buyers are expected to step in. If price holds at 2842, it could be an excellent area to enter long positions, anticipating a renewed bullish push. But there’s an even bigger play setting up behind the scenes that could send gold flying past $3000…
Click to find out how and when it could happen.
The overall market outlook suggests that the USD Index may correct before resuming its uptrend, Crude Oil remains at a decision point between support and resistance, and EURUSD and GBPCAD are setting up for bearish moves with ideal entry points forming on pullbacks. Gold appears to be forming a short-term sell opportunity before setting up for a longer-term bullish move.
It’s time to align your trading plan with the market’s movements.
Stay ahead of the game, plan your trades and trade your plan!
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