Forex Signals Brief for June 2nd – Get Ready To Trade Cash Cows
Arslan Butt • 3 min read
Happy Friday! You must be really excited to trade the big day, so am I. Thus far, the month of June has offered us phenomenal forex trading signals, and we are really hoping this continues.
We remained highly fortunate with our forex trading signal on the WTI Crude Oil Below 50% Retracement Level, though we only narrowly escaped. The market literally reversed after testing our suggested take profit level of $49.05.
On the flip side, the forex trading signal for the Japanese stock market index shared in Nikkei Pushes Higher – Risk On Sentiment Ruling floated in the profit overnight and managed to hit the take profit early in the Asian open.
The economic events today don't need a special mention as these events are well awaited throughout the month. But let's have a really quick look at them to help plan our trading day.
Top Economic Events To Watch Today
- Average Hourly Earnings m/m (12:30)
- Non-Farm Employment Change (12:30)
- Unemployment Rate (12:30)
- Trade Balance (12:30)
- Trade Balance (12:30)
- Labor Productivity q/q (12:30)
- Spanish Unemployment Change (7:00)
- Construction PMI (8:30)
Gold – XAUUSD- Trade The Double Top Pattern
Yesterday in the New York session, the precious metal gold slipped below an intraday support level of $1264. The selling trend initiated with the release of the private sector jobs from the United States. The figure released was phenomenal and set the upbeat tone for the labor market figures on Friday.
Interestingly, the weakness in the Buck continued to support the gold prices, particularly in the European session on Thursday and it consolidated above the major support level of $1264. In addition, the yellow metal was also underpinned by a risk-off sentiment in the market.
However, the risk-off sentiment later changed into a risk-on sentiment upon the release of stronger than anticipated figures for the U.S. ADP employment report. If you are wondering, what the "risk-on" sentiment is, I recommend you take a look at our earlier update Nikkei Pushes Higher – Risk On Sentiment Ruling.
Forex Trading Signal
While writing this report, I shared a buying signal on the precious metal gold. Buying is recommended above $1259/60 with a minor stop loss below $1258 and a take profit at $1263/65. I will be looking to stay in selling only below $1259.
Gold 30 Mins Chart – Double Bottom
Technical Outlook – Intraday
Referencing the fundamentals discussed in our update "Investors Takes Profit In Gold – Buyers Looming Ahead", the gold seems to have support above $1259. Technically, this distinct level is extended by the double bottom level, which can be seen in the hourly chart of the gold.
The specific reason for entering a buy call is the "Hammer" candlestick pattern which is followed by a series of bearish candles. This demonstrates that investors are respecting the double bottom level of $1259 and are likely to halt selling until and unless they see any major fundamental reasons to do so.
Moreover, the momentum indicators, RSI and Stochastic, are both coming out of the oversold trading zone, revealing investors' buying sentiment.
S1: 1259 R1: 1265
S2: 1249 R2: 1270
S3: 1234 R3: 1274
It's the first Friday of the month and investors are anxiously waiting for the macroeconomic figures from the United States, specifically, the Non-farm Payroll and Unemployment rate. These figures are considered the money makers, causing large quantities of investors to enter the market for quick profits. Having said that, we need to be cautious about the sudden reversals by making sure that we are following stick money management strategies. Good luck and have a great weekend!