Building a Trading Model for Price Action Trading

Gold recovers from the monthly low it touched near $4,400 at the weekly opening but remains in negative territory below $4,800. The precious metal continues its downtrend after reaching historic highs last week as Kevin Warsh's nomination as the next Fed chair eases concerns over the US central bank’s independence, bolstering the US Dollar recovery. US ISM PMI Manufacturing PMI data is awaited. 

EUR/USD stabilizes above 1.1850 after suffering heavy losses to end the previous week. The pair remains vulnerable to further downside as the US Dollar stays firm following President Donald Trump’s nomination of Kevin Warsh as the next Fed Chair. The focus now shifts to the US ISM Manufacturing PMI data. 

GBP/USD clings to small daily gains near 1.3700 after sliding toward 1.3650 earlier in the day. Traders weigh what a Federal Reserve under Kevin Warsh might look like, helping the US Dollar stay resilient against its peers and limiting the pair's upside ahead of the ISM Manufacturing Purchasing Managers Index report from the US.

Cardano price trades in red, slipping below $0.28 at the time of writing on Monday, following a correction of more than 15% in the previous week. The broader crypto market remains under pressure, with Bitcoin slipping below $75,000 on Monday.

The first full month of the year is behind us, and, honestly, it has been rather more dramatic than most had anticipated when toasting the New Year. We wrapped up last week with US President Donald Trump announcing his Fed Chair pick. 

Gold and Silver start the new week under heavy selling pressure after suffering huge losses on Friday. The US economic calendar will feature the Institute for ISM Manufacturing PMI report for January later in the day and investors will keep a close eye on comments from Fed policymakers.