Hello everyone, I hope you are enjoying the weekends after a very hard trading week, we had many important events and data so as a result, the market was volatile and many traders got huge losses. My trading account had huge floating losses but finally, the market gave me the chance to close my trades with some profits. My total profits amount was 14$ on Friday. On the same day, we got our weekly bonuses, I got 24$ for the 7th week, I saw many members complaining about their weekly bonuses. Yes, I agree with them, for the last few months, only 3 or 4 members are getting a good weekly bonus and the rest are getting leftovers. I think there is something fishy here because, as I said before, whenever my post starts showing up in popular posts, I get a negative reputation from some members. Many members stated the same issue. So, the question is: who is the person behind these actions?
Today, I got my 8th weekly bonus, I got 57$ so my total bonus amount for two weeks is 81$ which still a good bonus amount for me. Now, I have to complete a 0.15 lot size to fulfill the company withdrawal conditions. I will try to make more efforts this time and let's see how much I will receive. Many thanks to Instaforex and Mt5 forum!
On Friday, the EURUSD was moving on a strong downside, I think that the pair is oversold for the short term, so I opened a buy trade with 0.3 lot size as a beginning. If you take a look at my previous post, then you will find my view on this pair which is still bullish for the medium term. But for me, I will place my TP level at 1.2230 level.
All the currencies were falling against the US dollar on Friday. I was shocked to see that, Yes I was expecting a reversal on USDCAD, NZDUSD, AUDUSD, and GBPUSD but I didn't believe that the USD index jumped more than 1.5% in just one day! Later, I found out that the reason behind that was that the U.S. House votes to approve the $1.9T Covid-19 relief package and the bill moves to Senate. It's weird that the markets have moved before that news so it was clear that now the market has priced in that news effects and next week, the US dollar will return to the downside movements again.
USD waves analysis:
We have many scenarios for this instrument but for now, I think that price has completed the 2nd wave and starting from the next Monday, things will change, the USD index should start moving down again and this time we are expecting the previous low again 89.18. I think buying EURUSD and selling USDCHF is the best trading option for next week because the NZD, AUD, and GBP are weak too so it's risky to buy these pairs but if you are a scalper then it's fine.
As you know, the rise in the dollar pushes gold prices down, and vice versa, but this relationship is currently affected by developments in the Coronavirus and risk appetite in the markets. But in general, the main reason for gold's downside movement this week. The relief package approval on the US house is another reason for the gold weakness and if the US Senate approves it, then it will continue the downside movements.
Gold waves analysis:
According to my view, the gold has been moving on major ABC or WXY correction waves, it doesn't matter because both are correction waves. So, we can expect the same scenario. I'm expecting a bullish wave as a retracement on the next trading week, this wave can reach the upper trend line for the trading channel which should be around the 1900 level. Then, the price should make a final bearish wave to 1500 level. I think buying gold is a very good idea. The USD weakness will give the gold more bullish pressures.
Bitcoin is overvalued in my view and during Friday's trading hours, Bitcoin prices fell by nearly 11% to record about $ 44k due to the strong criticism from the US Treasury Secretary, which indicated that digital currencies work to speed up payments but are used in illegal transactions. I think investors will start selling Bitcoin again we gonna see the same scenario that happens in 2017. If you bought Bitcoin, then I suggest you sell it again before the market starts falling to 30k, 20k, or even 10k. The price has reached 279 Fibonacci level and for sure we gonna see a strong correction during this week. For me, I may sell it with a small lot size if the price makes some correction to 51k $. Otherwise, I will stay out and keep watching only. I suggest you buy other cheap cryptocurrencies like dogecoin and hold it for the next few years, nobody knows what could happen next!
Stock markets analysis:
I always heard that the stock market is much easier than the Forex market, I think this is true, I may stop forex trading and focus on the Stock market only. The only problem with stock market trading is the margin level, the stock trading will take a much bigger margin call than Forex trading. I will try to trade with 0.01 only as a beginning and I will share my daily stock trading opportunities with you guys. By taking a quick look at the US stock market, I see that most of the US companies' shares price has completed a correction wave and it's preparing for a downside wave.
As an example, we have the BHP Billiton share chart. This is a Mining company that is involved in the production of iron, steel, copper, silver, aluminum, oil, and gas. I'm expecting a reversal on Monday to 70$ level to cover up the up. The next wave can reach the 60$ level easily. That means a lot of profits with small risks if you short this share.
So, if the price has opened without any gap on Monday then I will sell it with 70 as a target.