Forex Trading Short on Gold (XAUUSD) and Silver (XAGUSD). Australian Interest Rates in Focus.

In today’s GCI Market Outlook, let’s take a look at Forex Trading on AUDUSD, Gold (XAUUSD), Silver (XAGUSD), USDCAD and EURUSD.

Last week’s US Non-Farm Payrolls, Wages, and Unemployment Rates came out worse than expected temporarily driving USD weaker and giving us some opportunities.

We use these violent spikes in price action, based on fundamental events, to help us get into trades with the prevailing trends, based on our technical analysis.

For example, on EURUSD, price rose to intellect this upper trend line in a bear run that started in March.

Price fell about 45 pips (that’s $0.50) and our entry point was confirmed by the stochastic oscillator.

On USDCAD, price action didn’t quite get to the lower trend line but you can see how reliable the stochastic oscillator has been as a confirmation of entry and exit points.

Contrary to the USD weakness we see on the USD charts, XAUUSD is falling and price action is heading towards the upper trend line with the stochastic oscillator heading for overbought.

Silver is behaving the same so let’s keep an eye out for a reversal soon.

We see that AUD has been quite strong lately but watch out for tomorrow’s RBA Interest Rate Decision.

The forecast is for no change so we may see temporary weakness allowing us to enter the market with the trend.

That’s all for now.

CFDs and FX are leveraged products and your capital may be at risk.