Gold Does It, Record High Above $2k

Scan Of The Markets

What stands out in the last 24h is definitely the major breakout in the Gold market after printing a fresh record high above $2,000.00. As such, this market makes it once again into the list of tradable assets where we find full congruence in the higher timeframes.

In FX land, the early story had to do with the stubborn strength in the US Dollar yet after one hour into the New York session, it suddenly reversed, leaving the currency exposed to further weakness in the coming sessions given the V-shaped type reversals

In the fundamental front on Tuesday, we had a dull RBA statement with very little new inputs to take away. Besides, there has been no progress on a US fiscal package deal although one can imagine that with the election nearing, it’s a real possibility that we may have Republicans caving in by end of the week? Watch this space.

The White House chief of staff Meadows said “we’re a long way away from striking any kind of a deal”, while Democratic House leader Pelosi said she remains firm on the $3.4 trillion packages first proposed. Besides, Republican Senate leader McConnell said “Wherever this thing settles between the president of the US and his team, who has to sign it into law, and the Democrat is something I’m prepared to support…”

Overall, going back to technicals, we still have a handful of markets trending in the higher timeframes, yet the common denominator this week has been the transition into trickier conditions where many markets entered range-bound or reversed in the 4h time scales. To find out the markets most prone to still gift us with trends, watch the video.

Trending Markets On My Radar

In this section, I short-list the markets that meet the criteria or are about, in order to engage on a directional trend off higher timeframes through a 15m chart entry. To get a deeper dive into the markets included in this section, watch my daily video.

Hot Trade Of The Day

To see an expanded version, right-click and select ‘open link in new tab‘. In this section, I pick a market or several ones that presented an opportunity to buy on weakness or sell on strength based on the higher timeframes outlook. My video analysis below will further elaborate on the logic behind the trade.

Insights Into Market Studies

In this video analysis, I dissect the information above. Ultimately, it is the traders’ call, via a set of entries thoroughly backtested, to enter and manage a position, hence the video is intended as educational in nature and not financial advice.

Video Length: 00:09:27

Recent Economic Indicators & Events Ahead

(Click on image to enlarge)

Source: Forexfactory

Important Footnotes

MARKET STRUCTURES

Markets evolve in cycles followed by a period of distribution and/or accumulation. To understand the principles applied in the assessment of market structures, refer to this video. Fractal breakouts is at the epicenter to assist us in the analysis of chart structures.

MARKET MOMENTUM

In order to assess the market momentum of a particular asset, I’ve promoted for years the idea of using what I call the smart money tracker. The settings and the indicator can be obtained via our Discord room, where traders from all walks of life interact frequently. In this video I lay out the elements I look into to call trend directions.

PROJECTION TARGETS

The usefulness of the 100% projection resides in the symmetry and harmonic relationships of market cycles. By drawing a 100% projection, you can anticipate the area in the chart where some type of pause and potential reversals in price is likely to occur, due to 1. The side in control of the cycle takes profits 2. Counter-trend positions are added by contrarian players 3. These are price points where limit orders are set by market-makers. You can find out more by reading the tutorial on The Magical 100% Fibonacci Projection.