Okay! So as predicted it has been a pretty wild week however the market seems to have respected the uptrend support indicating that investors are still leaning to the conclusion that US interest rates will be cut.
With a new week beginning my recommendation is to again REMAIN CAUTIOUS as more data will be released this week and we will likely see a break of either the lower support trend line or the 1.1284 resistance level.
If you absolutely MUST trade this week I would advise waiting for a close above or below these levels with volume, be careful of false breaks and keep your stops tight!
Put simply:
If economic data indicates the US economy is doing well, the Federal Reserve is less likely to cut interest rates and this particular market is likely to selloff.
Conversely if data indicates poor economic performance, an interest rate increase becomes more likely and we will see a rally.
See my previous idea below:
With a new week beginning my recommendation is to again REMAIN CAUTIOUS as more data will be released this week and we will likely see a break of either the lower support trend line or the 1.1284 resistance level.
If you absolutely MUST trade this week I would advise waiting for a close above or below these levels with volume, be careful of false breaks and keep your stops tight!
Put simply:
If economic data indicates the US economy is doing well, the Federal Reserve is less likely to cut interest rates and this particular market is likely to selloff.
Conversely if data indicates poor economic performance, an interest rate increase becomes more likely and we will see a rally.
See my previous idea below:
