Good morning Traders, we will like to present you with our outlook on GOLD , EURJPY , and USDCAD
In the wake of this week, the yellow metal made a rally and creat a new structure high above last month high @ 1702. This trigered a level 2 leg and the market has being in a range for 2 days now after the rally. Technically we expect a last leg to 1769/71 zone for the overall rally to be capped.
From a wider point of view, 1771 is the 1.272 fib extension the B/O of March range thereby creating an emerging butterfly outlook.
We therefore will watch for a bullish entry intrday while the market trade above the tema for a run to 1765. We will then tentatively await a sell as planned form 1771 zone.
Live entry will be posted in the trade room.
From the chart below, we can see that EURJPY made a impulsive BMS last week, a pullback to for an optimal trade entry level is therefore awaited. This week drop is considered the pullback and we therefore will like to stake in at this level in the London session. Our target for this stake will be 119.50 and invalidation is below the last low @ 116.25
Following a disappointing IVEY and employment data report, the CAD is taking a beating in the market at the moment. USDCAD had a shift bar printed yesterday, a sign of Level 2 rally … we expect a trap resulting from, BuyStop liquidity hunt today for a pullback to buy cheaper on this pair.
Our recommendation remains a stand aside for the trap print and a sell after the trap is set for a buy back around 1.3975
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