Well, well- who would have thought- May Nonfarm Payrolls added only +38K versus a consensus of +164K. Unemployment rate- 4.7% versus 4.9% consensus and 5% previous. We have experienced some humongous moves amongst currency pairs and metals. Traders start talking about a major correction in stock markets and further gains for the precious markets’ sector. The Brexit decision in June is on the “trading table” and the FOMC meeting both in June, we are about to experience a turbulent month. It might be wise to just stay away for a month, or if you are more of a risk taker, continue trading using price action techniques. What major levels should we look at in the upcoming week and am I seeing price action setups since Friday close. Let’s have a look below for the answer of some of those:
It was a hell of a bullish day for the EUR/USD pair on Friday. Still, our target is the level of 1.1550-1.1600. I am looking for a slight correction towards 1.1300 before adding to a long position. Just keep on eye for a bearish rejection candle or a 4Hour signal- using the rules from my trading course.
For all of my Twitter followers- I did signal a 4Hour support long trade last Friday just before the NFP. Although, I do not usually trade events like that, the price action was definitely bullish and I did not really wanted to pay attention to the fundamentals. In general, if it is not for the long run, I am not looking at fundamentals, since they are usually already priced in. Now, I am looking for a test of the 1.4700. I would be a bit cautious with the GBP pairs before the Brexit event.
Gold is one of those long-term trades I have been running since February. If you have read my article for the Gold/Silver mining stocks, you probably know why I am saying this. One way or another, I believe that we are going to experience a long-term bullish market. I am looking to add more long positions around 1240. My next short-term target is the level of 1300. After that, we will probably experience further gains, but I want to see price touching this level first and then making up my mind. Long for the near term.
Although we don’t have a very bearish signal from the S&P500, I am looking at this as a resistance zone profit-taking/selling zone. I believe price might touch 2110 and faking out a breakout before going lower. So, the best scenario for shorting S&P500 would be to have a bearish rejection candle around 2110 and then going short. For this formation, we need to be patient and if it forms, we will know which direction to take.