Forex & commodities on March 28, 2018: outlook


Here are my discretionary thoughts on forex and commodities. I only trade the stock market.
Go to the homepage for my latest thoughts on forex and commodities.

Thoughts

  1. Gold making lower highs despite safety haven play. A short term bearish sign for precious metals.
  2. Oil is consolidating in a narrow range.
  3. April is a seasonally bearish month for the U.S. Dollar.

1 am: Gold making lower highs despite safety haven play. A short term bearish sign for precious metals.
Gold and silver have gone up over the past few days as stocks went down. This is due to a safety haven play on trade war fears.
But the key point to note is that gold is still making lower highs despite this safety haven play. As long as gold can’t make a higher high, it is still trending downwards. This is a short term bearish factor for precious metals.

1 am: Oil is consolidating in a narrow range.
Oil is swinging in a narrower and narrower range.

  1. It faces previous highs as resistances.
  2. Oil is being supported on its 100 day moving average.

Expect a breakout or a breakdown soon.

1 am: April is a seasonally bearish month for the U.S. Dollar Index.
The U.S. Dollar is seasonally bearish in April.

April is a seasonally bullish month for the Euro (bullish for EURUSD)

April is a very seasonally bullish month for the Japanese Yen (bearish for USDJPY).

April is an extremely bullish month for the Canadian Dollar (bearish for USDCAD)

Read Forex & commodities on March 27, 2018: outlook

Bottom line

I only trade stocks. These are just my thoughts/outlook on other markets.

  1. Gold and silver are in bull markets.
  2. I’ve decided to buy some gold and silver as long term investments.
  3. The U.S. Dollar is in a bear market.

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