Happy New Year! Welcome to another live FX trading webinar. Today, we went over the recent fundamental events concerning the US Dollar, how our bold predictions for 2020 are holding up and what trade setups we can enter this week.
Most of the world has seen the news about the US attack in Iran that led to the death of the Kuds Force leader, Qasam Sulemani. This attack has much of the world in a state of shock as they brace for Iran’s response. Iran government officials said in a statement that they will have three days of mourning before the US will get a befitting response. Today is the earliest we can see a response. Crude oil went to a high of $70 per barrel and the US Dollar tumbled in wake of the attack.
We do have some positive news regarding the trade war between US and China. On January 13th, China will visit the White House to sign the phase one of the recent trade deal. This should be beneficial to both nations’ respective currencies.
Despite being on the verge of World War 3, our bold predictions for 2020 still stand. In today’s session, we saw EURUSD remain within our daily descending channel. We also saw our GBPUSD short term bearish bias play out as well. Our initial mixed bias for Gold has turned into a bullish bias, much of it due to the recent attack in Iran. We could see the precious metal make a run for 1800 if the monthly candle closure is bullish.
We usually use Monday to assess the markets and determine biases for certain currency pairs. We are in no rush to enter trades with the current tensions with US and Iran and it being the first trading week of the year. Much of the world, including us, are awaiting Iran’s response. The extent of their response will not only dictate our trades but also humanity as a whole. We will start eyeing entries during the midweek. Please implement extra caution during this time. With that being said, I will see you all tomorrow for another live trading session! As always, be safe and happy trading.
Watch The Full Live Session:
Check Out Our Happy New Year Blog Post: January 6th, 2020