Today, we will take a look at Forex Trading on the Dow Jones Industrial Average, EURUSD, AUDUSD and Gold, XAUUSD.
Last time we looked at buying the dip on gold, and we did, in fact, get a result.
What we have now, however, is a range trading opportunity with price action almost perfectly placed between $5,000 and $5,200.
You can see here that we can use the stochastic oscillator to time entry and exits along with lines of support and resistance.
Of course, you may add other indicators to look for confirmation, and here you see Bollinger Bands indicating the tops and bottoms within the range.
Also, the Bollinger Squeeze always indicates big moves to follow…soon!
But, more than the technicals, keep an eye on fundamental news events like the Iran war and the general chaos in Washington.
Speaking of which, last Friday’s Non-Farm payroll report was a special kind of dreadful, and the unemployment rate crept up a little too.
This caused most USD pairs to gap, and we can see that the stochastic oscillator picked the reversal points.
We saw similar price action with the indices, like the Dow Jones Industrial Average.
We saw the gap, the recovery as investors bought the dip, and the possibility of a technical short trade with price action at the upper trend line and the stochastic oscillator overbought on the 4-hour chart.
Again, check other indices and USD pairs and watch the news!
That’s all for now.
CFDs and FX are leveraged products, and your capital may be at risk.
