Using Price Action to Hedge Around USD While Focusing on Gold
- We had discussed the short-side setup in GBP/USD just a day earlier in the Technical piece on the pair. The entry protocol was waiting for a 1.4371 print before getting short, which happened earlier today.
- We looked at the fact that few currencies appear to be backed by Central Banks that would welcome strength into their currencies, and this could further the attractiveness of long Gold setups.
- We spent some time looking at flag-formations, with a specific focus on bear flags that had recently formed or come back into play on EUR/USD and SPX500. We discussed some of the more recent bear flags to develop in equity markets in the early February article, Global Stocks are Working on Synchronous Bear Flag Formations.
- If you want to learn more about incorporating macro-economic analysis with price action and risk management, check out our 360° Course in which we incorporate our risk management research from Traits of a Successful Trader in a 2-hour course combined with exclusive weekly webinars.
--- Written by James Stanley, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.