While NZD/USD Is Coming In With The Lowest Score Of The Day😯📉

This has been a pattern in the last few days. A pop in the morning, and sellers come in hard.

Staying short Russell. - Nick

UK retail sales fell this morning suggesting a decline in GBP inflation. Unlike the US, the BoE may look to cut rates earlier than its counterparts. The pound is increasingly weak as the dollar remains elevated with yields. If the slowdown in economic activity and inflation slides, GBP dovishness may persist.

Data from the A1 EdgeFinder
📈 Trial the EdgeFinder
🔓 Use Code TGVIP for 40% Off

How was your trading week? 🧐

(React with an emoji that describes your week)

Today's top setups suggest a major risk-off tone as tensions in the Middle East and Ukraine escalate. Of the USD pairs, a handful are placed on the extremes of the spectrum. USD is looking incredibly strong compared to a few months ago when monetary policy was perceived dovish. With further doubts of a summer rate cut - or at all this year - the EdgeFinder may continue to score the dollar in a more bullish favor.

Data from the A1 EdgeFinder
📈 Trial the EdgeFinder
🔓 Use Code TGVIP for 40% Off

The S&P broke under a pivotal support level on the 1D timeframe, along with the other US indices. The majority of movement on today's candle happened in the futures market over night. The close underneath support is likely going suggest further lows in the coming days for the stock market. The uptrend rounded out and now is breaking under the trend line and levels of support. We are entering an important earnings week with big tech. It seems unlikely that earnings will be more impactful than what is happening around the world. We may have to see more of a sell off before things seem optimistic again. A few weeks ago, I speculated seeing a 10% decline from the highs due to market overextensions. If that does end up happening, we might see price around $4,700-4,800s range where we started at this year. For now, I'm not too convinced that a bullish rally can be a lasting one. -Frank

The fact that gold remains elevated with a rising dollar and yields adds to the risk-off sentiment we're seeing in the markets. The metal is also overextended to the upside, but it will likely remain bullish if it can stay above support at $2,300. Otherwise, the strong trend is still in play. -Frank

🥂 40% OFF The EdgeFinder w/ code TGVIP
The EdgeFinder is TWO! We are celebrating the Edgefinder’s anniversary with our biggest sale of the year!

EdgeFinder Pro
was: $1399
now: $839 (with code TGVIP)

Unlock access to:
✅ One Time Payment
✅ Top Setups Scanner
✅ COT Data Scanner
✅ Smart Money Indicator
✅ Retail Positioning Indicator
✅ Gold / Commodities Scanner
✅ Indices Scanner
✅ Forex Scanner
✅ EdgeFinder Score Indicator
✅ AAII Investor Sentiment
✅ Bank Forecast Tool
✅ Seasonality
✅ Market Heat Map
✅ Price Forecasts
✅ Fundamental Data
✅ Carry Trade Scanner
✅ Risk On / Risk Off Gauge
✅ Future Software Updates FREE

🔴 40% off Code: TGVIP

GET EDGEFINDER ACCESS HERE

Mondays as a trader >

Silver sits at a stronger bullish reading than gold as the trend score declines this morning. Unlike gold, other metals tend to perform bullishly off healthy economic data. It is also correlated to gold in the sense that geopolitical tensions work in silver's favor.

Iran was attacked by Israel in a retaliation response to Iran's missile barrage earlier last week. The stock market is still not showing signs of a shift towards optimism due to these strikes from both countries. Gold is up, yields are falling and dollar is falling too.

Data from the A1 EdgeFinder
📈 Trial the EdgeFinder
🔓 Use Code TGVIP for 40% Off

There are several levels of support that the S&P could test on the 1D timeframe. Price tested the $4,927 level on Friday and is stuck between support and resistance. The move looks indecisive as we have mixed feelings going into the week.

Although it looks bearish in the short term, a 10% pullback sounds like a healthy retracement from the overextended highs we've experienced in the past handful of months. A pullback of this magnitude would only be giving back what the index has made this year.

Among dollar pairs, GBPUSD is the strongest bearish reading on the EdgeFinder. A -11 score shows a slight improvement from Friday which was -13, but it might not be enough to flip the sentiment around. COT shows an aggressive positional change to bearishness this week while retail remains majority long this pair.

One factor that could help this pair's optimism lies in the US earnings this week. Big tech is set to report in the next few days and will likely cause some sort of volatility to the mix. Beats on estimates are important, but we also need to pay attention to the forecasts for next quarter as well.

Data from the A1 EdgeFinder
📈 Trial the EdgeFinder
🔓 Use Code TGVIP for 40% Off

Crypto, metals, small caps oil and NASDAQ are now the majority long positions from the crowd. GER30, USDJPY and UK100 are the top shorted assets. Traders might be looking for a reversal in the US indices, thinking it has dropped substantially.

Data from the A1 EdgeFinder
📈 Trial the EdgeFinder
🔓 Use Code TGVIP for 40% Off

Gold, 4H Chart

Is the selloff finally here? With strong economic data driving interest rate yields higher - and potentially a cooling situation in the middle east... Has gold lost its shine?

For traders watching gold - let's see if price can break support at 2330. This area has been a key support level for buyers, as seen in the image attached!

Bears - be careful. Gold is still in a strong uptrend on the daily chart, and geopolitics could rally it through all time highs again at any moment!

- Nick

Get the software, 40% OFF with code TGVIP here:
https://a1trading.com/edgefinder/

Have questions? Chat now:
https://tawk.to/chat/62e5d26254f06e12d88c1ec2/1g98rrk80

COT shows an aggressive buy on the S&P and bond prices. The dollar saw minimal interest last Friday. Among the top shorted assets from smart money, we have GBP, CAD EUR and CHF. All of these currencies are forecasted to see lower rates before the dollar.

Data from the A1 EdgeFinder
📈 Trial the EdgeFinder
🔓 Use Code TGVIP for 40% Off

Despite economic growth and steady labor conditions, investors still seem to think that stocks will be on the decline in the next 6 months from now. The next report will be on Wednesday to see how much this gap has changed and whether or not we get any improvement from the bearishness happening in the markets.

Data from the A1 EdgeFinder
📈 Trial the EdgeFinder
🔓 Use Code TGVIP for 40% Off

GBP/USD
This pair is still a strong bearish reading on the EdgeFinder indicating that price is likely to trend lower over time. The score decreased once again taking the pair to a -13. However, stock market futures are up in premarket as investors get ready for a heavy tech earnings day. Tesla reports after the bell today while Meta reports Wednesday, Google and Microsoft report Thursday. We could get some short term upside if earnings roll out in favor of the estimates. GU is stuck in between a long-term wedge pattern and may continue trending within this range.
-Frank

EA/Algo traders! This is for you! 👀 We have partnered with a VPS provider. Forex VPS offers:

✅ Near-instant execution (1ms or less)
✅ 100% uptime guarantee
✅ Quick setup
✅ Free perks
✅ 24/7 assistance
✅ 14 day money-back guarantee

Receive 30% off using code A1TRADING30