Jackson Hole, BoE, BoJ in focus – Forex trading short on Silver [Video]
|In today’s Market Outlook, let’s take a look at Forex Trading on Silver, XAGUSD, GBPAUD, USDJPY, USDCHF, and AUDUSD.
We are seeing recent USD strength, which may mean waning investor confidence in an interest rate cut.
Speaking of Interest rates, Jerome Powell will be speaking today at the Jackson Hole Economic Symposium.
These speeches almost always move the markets, so look for nice movements and reversals, WITH the trend.
USD opportunities include AUDUSD, where price action is sitting solidly at support.
The stochastic oscillator is very overbought, so let’s watch the news and keep an eye on our technicals.
If we see USD weakness today, USDJPY could be an option, with the stochastic oscillator very overbought.
We see the same technical indication on USDCHF, which has been in a range-trading mood all month.
Also, we have central bank speeches from the BoE and the BoJ, so watch for price action gaps at the open Monday morning.
GBP has been strong lately, and inflation is still above target, so we could see the pound getting even stronger.
We see a pullback in the bear run on GBPAUD into the lower trendline, and we will keep an eye on the technicals to confirm if the uptrend will continue.
We were looking at a symmetrical pennant on Silver last time, and it is still intact.
Therefore, a range trading opportunity may exist as price action has just bounced off the upper trend line and the stochastic oscillator is very overbought.
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