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WEEK AHEAD: AUG 16

Short Description

Two of the biggest movers last week were gold and what they call ‘digital gold’ that’s Bitcoin. I go through the news there and then cover highlights from the economic calendar including the RBNZ meeting and UK inflation data.

Video Script

Preparing for the coming week ahead in forex markets? You’ve come to the right place because I’ll be discussing the biggest stories in the forex market and will go through the events coming up this week. Two of the biggest movers last week were gold and what they call ‘digital gold’ that’s Bitcoin. So, I’ll go through the news there and then cover highlights from the economic calendar including the RBNZ meeting and UK inflation data. Stay right there.

 

First up let’s talk Bitcoin. Now maybe you bought around 30,000 and are wondering whether to hold on, or you missed the boat at 30,000 and are wondering if it’s too late. Actually, I think there could be good news either way. The price is now up over 50% from its low at 30,000 – and with some nice symmetry has also retraced 50% of its decline from record highs. It has also just crossed over the 200-day moving average. These three things are all reasons Bitcoin’s rally could take a pause near here- it doesn’t have to, but they are three good reasons it might.

 

But what prompted this latest bullish phase for Bitcoin, and can it continue? I think one of the biggest causes has been the possibility that new US regulations could attract more institutional investors. And that’s not just me saying that there have been several new applications for a Bitcoin ETF in the past couple of weeks. That suggests those ETF providers must think there is demand out there for Bitcoin.

 

And while I’m at it, can I just ask that if you’re enjoying the video, please feel free to show some appreciation and slam that like button! It really helps us spread the word about these videos

 

OK so I think we can’t talk about the new week without discussing the Gold flash crash- and what it could mean for gold moving forwards. Across Friday and Monday of last week, gold dived over $120. The most dramatic was Monday where the decline happened in minutes and within hours had been erased. I think what we can say here is that the drop was bearish but the bounce off the 2021 lows was bullish. For me the conclusion is that gold is still range-trading – I don’t need to try and predict whether the price ultimately breaks higher or lower – I just need to know that for now its overall trading sideways. From a trading perspective that means I can be ready to take both buy and sell trade opportunities near support and resistance levels accordingly.

 

Now last but not least, let’s have a look at the economic calendar highlights. Eurozone Q2 GDP will be a significant one for the euro-dollar forex pair, which is testing its 2021 lows. Should the data come in soft, that could provide the ECB the excuse they need to keep the stimulus going for longer. US retail sales are expected to decline in July and in opposite fashion to the euro-dollar, the dollar index is pushing its highest levels of the year. This data could determine whether we get a breakout. The RBNZ sets monetary policy but I expect no updates on a rate hike despite upbeat New Zealand jobs data this month. And the other big one to watch is UK CPI. The British pound has been strong against other pairs and inflation that remains above the Bank of England’s 2% target supports this strength.

 

Right thanks everyone, good luck trading this week and make sure to click on subscribe so you don’t miss the next episode of the week ahead.

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