Forex trading on USD and Nasdaq after inflation report trading short on Silver [Video]
|In today’s Market Outlook let’s take a look at Silver (XAGUSD), USDCAD, GBPUSD, USDCHF, the DJIA, the S&P500, and the NASDAQ.
Yesterday’s US CPI numbers and poor Retail Sales numbers showed the Fed that inflation is still trending downward.
This sent the US Indices flying!
Both the NASDAQ and the S&P500 are at record highs.
Will the Dow Jones Industrial Average and the Russell 2000 follow?
With inflation coming down, the Fed may lower Interest Rates sooner than expected which companies and shareholders like.
This, in turn, makes USD weaker.
If you are looking for a reversal right away, be careful.
At this moment we see price action turning back and the stochastic oscillators are at extremes.
On the daily chart we see price action on pairs like GBPUSD at a key level and the stochastic oscillator very overbought and about to turn down.
USDCHF is also at a key level of support and we have been in a bull run since December.
Last time, we spotted a descending triangle on USDCAD, and the economic news broke support.
On the daily chart price action has reached this lower trend line and the stochastic oscillator is heading into oversold territory.
Last time, we pointed out a potential long trade on Silver and look what happened.
Is it time for a short on XAGUSD?
Price action has bounced off resistance and the stochastic oscillator is turning down.
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