|

NFP upend markets – Forex trading on Silver in falling wedge [Video]

If you caught our last 2 videos we were looking at long on USDCAD and a short on AUDCAD.

Well ,look what happened, again!

Price action on USDCAD might be finishing its bull run as it has formed an ascending triangle.

We will need to see a break above or a break below before determining the next run.

AUDCAD fell just after we posted the video.

We see this level of support from August but room to move to the downside with key support from the spring of last year.

Silver seems to be continuing its bear run which started in October and we will watch for signs of a reversal.

The stochastic oscillator has turned over from overbought but we also see price action in a falling wedge which may affect our longer-term view.

Last Friday the US Non-Farm payrolls report deviated dramatically from the analysts’ predictions so many of our setups were turned upside down.

For example, the US indices broke out of their range to the downside but we will be watching for a technical reversal.

Also on Friday, the US imposed more sanctions on Russian oil, driving WTI higher.

We are now seeing a key level at $78 with no real sign of a reversal yet.

For the rest of the week, we have some market-moving economic news from the US, the UK and Australia so watch for volatility and opportunities.

For example, we are in a clear uptrend on EURAUD but we will wait for bounces off the lower trend line and technical signals like an oversold stochastic oscillator.

Author

Brad Alexander

Brad Alexander

FX Large Limited

Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.

More from Brad Alexander
Share:

Editor's Picks

EUR/USD faces next resistance near 1.1930

EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.

GBP/USD slips heading into the Thursday trading window

The Pound Sterling pulled back from four-year highs on Wednesday, weighed down by a combination of Bank of England dovishness and UK political uncertainty, even as the US Dollar weakened on soft labor market revisions. 

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.

Bitcoin holds steady despite strong US labour market

Bitcoin briefly bounced from $66,000 to above $68,000 but slightly reversed those gains following Wednesday's US January jobs report. The top crypto is hovering around $67,000, down 2% over the past 24 hours as of writing on Wednesday.

US jobs data surprises to the upside, boosts stocks but pushes back Fed rate cut expectations

This was an unusual payrolls report for two reasons. Firstly, because it was released on  Wednesday, and secondly, because it included the 2025 revisions alongside the January NFP figure.

XRP sell-off deepens amid weak retail interest, risk-off sentiment

Ripple (XRP) is edging lower around $1.36 at the time of writing on Wednesday, weighed down by low retail interest and macroeconomic uncertainty, which is accelerating risk-off sentiment.