XAUAUD

Weekly Forex Outlook: August 12

Bonjour, mes amis! 🇫🇷 I’m in Paris, France right now, as I had a spur of the moment idea to spend a week or so in the French capital. Had a good trading week? This was an absolutely epic week for trading, as we finally saw the VIX move back up and many setups worked out very nicely. Let’s go over them right now!

 

On the contrary to what I said last week, gold actually shot up. This is totally due to Trump’s comments about North Korea, which catapults the world’s financial markets into risk-off mode. This means gold and the yen shoot up, which is what happened. Oil, on the other hand, was ranging for the most part of the week but did eventually go down. It is currently retesting the support-turned-resistance zone it broke on Friday and I reckon it’s still an excellent setup to take next week if it goes down again.

 

USDWTI

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NZDUSD

Weekly Forex Outlook: July 9

Hi readers, happy Sunday! Another week has passed! Of course, the weekend is my time to review my past week’s trades and analyse the markets to come up with a watchlist and weekly outlook. This has become second nature for me and it’s absolutely critical to have habits like this as a trader.

 

However, past week was a bit challenging to trade reversals! While the AUDUSD short worked out nicely, the other setups didn’t really materialise. My WhaM system did a lot better this week, with a profit of over 4R. Besides the reversal setups, I am thinking of incorporating some of these setups here as well if there’s enough interest.

 


It did get me thinking about how trading systems perform. I’m of the opinion that even the best trading systems won’t always work very well and usually, that’s a good thing. Because when you try to add filters and parameters and requirements to your system in order to make it lose less money, what you are actually doing is overfitting a system. You might get better performance in the current market conditions, but markets change.

 

Those changing conditions will then often lead to decreased performance since your system is now very specific to the market environment you tested it on. That’s why often, the best trading systems are the simplest. The systems with the least moving parts – Occam’s Razor in the context of trading systems.

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EURNZD

Weekly Forex Outlook: June 24

Hi traders, good morning and good weekend! How was your trading week? For me, the past week was relatively uneventful and with many setups lacking a bit of follow through. Most of the setup in last week’s outlook didn’t materialise, which means that I didn’t take any position in them. Instead, there were a couple of other opportunities that came along as the week went by, still good for some nice trades. We’ll go over one of them in a moment.

 

On a personal note: I decided to extend my stay in Tokyo for another month as I’m having a great time here. The Japanese culture and big city life agrees with me! It reminds me of my time in London. By the way: did I already tell you how crazy good the sushi is around here? 😉

 

 
Some interesting events were crude oil selling off, regardless of better than expected oil inventory data and the recent developments with the UK starting the Brexit negotiations. Not too much has happened otherwise, so let’s not linger too long and have a look at the big picture, before diving into the outlook for next week.

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EURCAD Forex outlook

Weekly Forex Outlook: June 10

Hi traders, how’s the weekend going? I hope you had a good trading week! It certainly was an eventful week, with the UK elections as the main event on Thursday in addition to ECB meetings and a Senate hearing of ex-FBI director James Comey. These events made sure that it was a rather short week for me, without any trading on Thursday and Friday.

 

It was a relatively quiet week for setups as well. I only took two trades: the AUDNZD 4H long and the CHFJPY 1H short. The former had to be cut quickly since it didn’t really work out as planned (I suspect due to a very strong New Zealand dollar) but the latter worked out beautifully. I’m going to review the CHFJPY trade in a moment.

 

If you want to keep up to date on setups during the week, have a look at my TradingView page. During the week, I will often publish a chart setup over there as well if I think it’s worth looking at.

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GBPCHF forex outlook

Weekly Forex Outlook: May 20

Hi there, squad! How was your trading week? The past week has been… interesting, to say the least! The troubles that surround Trump (the firing of CIA boss Comey, leaks to Russia, etc) kind of held the markets hostage and much of the current market action is fuelled by politics and uncertainty, rather than pure technicals and economic data.

 

However, there were still opportunities to be had! The AUDCHF 4H short we discussed in last week’s outlook turned out to be my favourite trade of the week and we’ll review it in my weekly trade review. The GBPJPY short and Silver long trade also worked out nicely, with only our EURJPY short deciding to move a bit higher. No harm was done, our alerts were never hit so no action was taken on that one. The WhaM system also had a solid performance, although I’ve slightly changed the rules recently, but more on that soon!

 

If you want to keep up to date on setups during the week, have a look at my TradingView page. During the week, I will often publish a chart setup over there as well if I think it’s worth looking at.

 

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USDCAD forex

Weekly Forex Outlook: April 23

Hello, traders! It’s time for my weekly forex outlook again! Last week was a relatively quiet week, but two of the setups of last week (the EURUSD 4H long and the USDWTI 4H short) still worked out exactly as planned. I will review the USDWTI trade for you in this week’s trade review. The two other setups (USDMXN long and NZDJPY long) still didn’t yet materialise but they’re quite close, so they are still on my radar. Feel free to include those in your watchlists for this week again!

 

The one real surprise from last week was UK Prime minister May, who indicated that there would be early elections after all. It’s safe to say that no one expected this news and the British pound shot up afterwards, as the markets saw this as a signal that May might gain more support. And with more support, it is thought that she will have an easier time making better deals regarding Brexit.

 

If you want to keep up to date on setups during the week, have a look at my TradingView page. During the week, I will often publish a chart setup over there as well if I think it’s worth looking at.

 

 

Current market behaviour

 

Last week was a shorter week, with Monday off due to the easter holiday. Troubled by continued uncertainty regarding the situation in North-Korea, the US dollar sold off for most of the last week. It did, however, create a double bottom before moving a bit higher in the second part of the week.

 

You’d think that gold would see a steady rise, but it ended the week only a little bit lower than the week before. A lot of money flows are going into the Japanese Yen as well (with the USDJPY steadily declining), but gold is giving us a bit mixed signals and not a clear trending behaviour.

 

It’s worth noting that these days, a lot of the currency moves are fuelled by fundamentals as well. Things like the North-Korea situation, the French elections, Brexit and continued uncertainty on the proposed US tax changes (which might be coming next week) are driving a lot of the markets in the past weeks. It sometimes makes for unpredictable moves, which is something we have to keep in mind.

 

weekly macro outlook

 

Oil, on the contrary, gave us a clear signal last week, selling off for the entire week (as indicated in my last outlook). This was partly fuelled by disappointing oil inventories (there’s too much supply) but also by strong technicals.

 

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AUDCAD forex

Weekly Forex Outlook: April 2

Hello traders, happy Sunday! Last week was again an excellent week for reversal traders and there were many interesting setups in the market. I’ll review one trade I took in USDJPY and a sell in XAUUSD. Next week will be a little busier with non-farm payrolls on Friday and other economic news spread out over the week, but there are again many setups developing, so plenty to look at!

 

Current market behaviour

 

The dollar turned around this week. As you can see on the DXY chart, the dollar rallied for pretty much the entire week. Fuelled by positive economic news releases and a slew of FOMC member speeches, the dollar ended the week quite a bit higher.

 

DXY Daily

 

Although, we can see that the overall daily sentiment is still bearish, with the dollar index still making lower lows and lower highs. It wouldn’t be surprising if the rally of the past week was just a retracement in the larger timeframe picture, with the dollar continuing its path down soon again. On the other hand, if the dollar bulls can keep the momentum going, we might see more bullishness next week.

 

Market overview

 

Gold is inversely correlated to the dollar and so sold off for a major part of the week. However, Friday painted a different picture. Some FOMC member speeches were rather cautious, saying that the current positive market sentiment hasn’t yet resulted in improved economic figures. The market took this as dovish news and moved money to risk-off assets, such as gold. The result was a strong Friday rally on XAUUSD.

 

Finally, crude oil finally saw some improvement in trend structure. For the first time in a long time, we could see a clear trending market instead of the usual, skittish market behaviour we’ve been seeing in the past couple of weeks. Oil ended the week strongly higher.

 

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EURUSD

Weekly Forex Outlook: March 26

Another week has passed, so we take the time to look at how the trading week went and at the same time, make our outlook for the next week. The past week had many reversals happening and many of the setups I indicated last week played out really well. We’ll have a look at some of these in a moment.

 

This week, it was a little harder to find good setups. We see less trending markets and if they are trending, they’re either in between S&R levels or just not trending cleanly. Nevertheless, I have selected some pairs I find worth looking at.

 

Current market behaviour

 

This week, we could see the USD continue its path downwards. Wall street might keep betting on the infrastructure and regulation changes that the Trump presidency has promised, but for now, we see a weakening dollar, indicating that the initial rally high after the inauguration has largely worn off. By now, Wall Street wants to see some concrete evidence – not some vague promises – in order to get the dollar higher.

 

For now, this is good news for technical traders. In the absence of political news, the dollar is respecting the technical elements more than anything. Price is also nearing a previous swing low, which should act as support and might give us new opportunities to buy the dollar next week, but let’s see.

 

Market overview week 25 March

 

Gold had a good week, ending quite a bit higher than last week and oil had another very skittish week, ending the week a bit lower after higher than expected crude oil inventories.

 

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AUDCAD

Weekly Forex Outlook: March 19

Hi traders, how’s your weekend going? I had a very short trading week since as of Wednesday, I was out of the country for a business trip, so no trading from then on. I did, however, have one trade in the beginning of the week that I want to go over with you and we’ll get to that in a minute.

 

Last week was also filled with fundamental news releases, so, on the one hand, it was a good time to be away since I don’t trade news releases. On the other hand, I saw most of the previous week’s outlook unfolding really nicely (like CHFJPYGBPCHF and NZDUSD) without being able to trade them. Then again, new opportunities will always present themselves, so I’m just looking forward to the new week!

 

On the US Fed rate hike

 

Last week finally had the much anticipated US Fed rate hike event, which went down a bit different than most people thought it would. A rate hike is basically a positive event for the USD, so many were expecting a rally after the hike. However, on Tuesday I mentioned this on Twitter:

 

 

And then on Wednesday, this happened:

DXY rate hike

 

An initial short run up when the FOMC statement was released and then a huge sell-off at the time of the FOMC press conference.

 

It makes sense. Think about it. The market was pricing in a 100% rate hike already, so the hike was no surprise. Everyone who wanted to had already positioned themselves. Additionally, there was one dissenter (Minneapolis President Neel Kashkari), so the decision to hike rates wasn’t unanimous.

 

And greedy as the market is, we were already looking for signs of even more improvement and potentially 4 rate hikes for 2017. Unfortunately, this didn’t happen. Fed chair Janet Yellen mainly kept the same tone as in previous statements and the Fed’s economic projections stayed pretty much the same as what they released in December. Hence the sell-off.

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GBPCHF

Weekly forex outlook: March 4

Hi traders, I’m back with another weekly outlook! Lots of nice setups lining up for next week so even though the weekend has just started, I’m already looking forward to next week. Last week, I moved to a new place (in Brussels), so I was a little busier than usual, but it was an interesting week nonetheless.

 

Current market behaviour

 

A general observation is that the markets seem to be more skittish than usual, mainly fuelled by various fundamental factors in the world right now. Just yesterday (Friday), we could see the euro taking off on news about an early poll on the French election. Tuesday was focussed on the Trump speech to congress, which was the first time president Trump gave such a long speech singuce the inauguration. Markets were hoping for some details on the proposed tax cuts and infrastructure spending, but Trump was remarkably vague on details. In all, it was a rather uneventful speech and a rehash of the promises he made during his presidential campaign.

 

Let’s have a look at the overall market last week. The dollar initially surged on hints by Fed officials that a March rate hike would be likely. In the second part of the week, it made a market top and seems to have set in a downtrend. Even though almost every Fed official including Yellen indicated that a March rate hike was on the table and that the US economy had met Fed objectives, the DXY ended the week little changed. This could indicate that the rate hike was already largely priced in and the market was more focussed on other, mixed economic news.

 

Gold has ended the week quite a bit lower, continuing the downtrend initiated by the double top from last week. Even though the dollar was down for the second part of the week, the market seems to believe in dollar strength. This risk-on environment is the likely reason gold is selling off.

 

Finally, oil has moved down for the week. Better than expected crude oil inventories couldn’t prevent the commodity to sell off, but it rebounded near the second part of the week to around 53.20 a barrel.

 

Market overview

 

 

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