Nasdaq and S&P 500 recovery – USD consolidating after NFP weakness – Forex trading long on Silver? [Video]

In today’s Market Outlook let’s take a look at Forex Trading on GBP/USD, the S&P 500, Silver, XAG/USD, Gold, XAU/USD, EUR/USD and USD/JPY.

Last Friday’s Non-Farm Payroll figure was terrible causing very rapid USD weakness.

This price action went against recent trends, which is a trade we like to take, but USD seems to have stalled.

If we look at any USD daily chart, like this one on EURUSD, we can see the difference in trend direction so the NFPs actually drove price action WITH the trend.

This is why you need to look at multiple time frames.

The weak USD had the same effect on gold with no sign of reversal, yet.

When you see wavy lines in your technical indicators like the stochastic oscillator, this is not helpful, and anything can happen.

If you look at other lower time frames, you will see the same anomalies so beware.

However, if we look at the daily chart on gold, we see a range trading opportunity with cleaner technicals.

On Silver, we see a clear uptrend with price action touching the lower trend line and moving up, in synchronicity with the stochastic oscillator.

The big news on Friday was the crash of the stock markets as we can see from this chart on the S&P500.

To make matters worse, Donald Trump “shot the messenger” and fired the head of the Bureau of Labour Statistics, the agency that produces the figures for the non-farm payrolls.

This is bad, and the markets will be watching for the announcement of a new head of the BLS and a new Fed governor.

Chances are, we will see a weaker dollar and another fall in the indices.

Today we have economic news with a US PMI at 10 am New York time, employment reports from New Zealand, the US, and Canada. 

The BofE will be voting on interest rates, and the consensus is for a rate reduction for an already weak GBP.