The Euro on a High Rise
A big winner of the past week was undoubtedly the EUR which, apart from Tuesday (01/02), had gains against all the other 7 major currencies, during all the other days. On the other hand US, JPY and CAD had limited losses, with the dollar (mostly) gaining back, in Friday’s (04/02) market, a significant part of these losses. The GBP, Swiss Franc, Australian Dollar and New Zealand Dollar showed mixed trends with no notable performance, positive or negative, always on a weekly time horizon and for each against all other currencies.
Gains for Gold
After the sudden collapse of the precious metal over the three days of January 26, 27 and 28, where it suddenly lost over 3.5% of its value, gold rose from the $1780 area and made new daily “highs” last week (January 31 to February 4) reaching even $1814 during Friday.
Here, it is worth mentioning, with particular interest, the upward trend on the daily chart, that has been established since late September and has already been tested twice. So, it seems to be holding up for the third consecutive time with “stop loss” for buyers placed right in this area of 1780$ and already counting some profits.
If the upward scenario comes true (which technically seems very likely) we will, once more, see the price move towards the recent resistance of 1850$, depending of course, on the developments that will occur in the market in general, especially with the pressing issue around the western world, which is the rise in inflation and the question if it is an occasional problem, or if it takes on structural and long term characteristics.
The Case of Silver
At forex-art.com, as you will have already noticed in “Free Signals” we are buyers since February 3 in silver, whose price shows common characteristics with gold. My choice has to do with “seasonality” characteristics as February has been, for the last 25 years, an excellent choice for buying at the beginning and selling at the end of the calendar month, with a success rate of 60% (15 profitable trades instead of 10 loss-making ones) and an annualized rate of return of +37%. Similar thinking, was my choice to buy “Future” in “Crude Oil” at the beginning of the month, at 88$ which is already showing significant gains, but of course it is too early to draw conclusions.
I would like to add at this point, that for both these “future” cases and all those that open as “buy-sell” signals on forex-art.com, and have seasonality characteristics, it is very likely that positions can be manually closed at any time, as most of the time the “stop loss” and “take profit” levels, published and following these trades, are indicative.
Good trading to all of you and have a nice week, in good health. Save some time, away from professional obligations and involvement in the financial market, for your loved ones or whatever else you like to do and don’t forget: “Online trading is extremely risky. Assume you will lose money. Don’t trade with money you cannot afford to lose.”