Pain Trade in Gold to Continue?

TL;DR

Euro USD may make a short-term move towards 1.25-1.30 if certain levels are penetrated, caution on being too bullish on the dollar. Gold is in a corrective move downwards with key support levels at 1250-1260. Freeport-McMoRan (FCX) could be a put candidate if copper continues to decline.

Transcript

hello traders Dale Pinkard here my twitter handle is Forex top hunter if you're interested in becoming a student buying and having me mentor you you could reach me on twitter with the direct message if you follow me at Forex top hunter so i have a little bit of a potpourri for us today i want to start off with a short term look at euro USD as you k... Read More

Key Insights

• 🍉 Euro USD may see a short-term move towards 1.25-1.30 if certain levels are surpassed.
• 🤩 Gold is undergoing a corrective move downwards and has key support levels at 1250-1260.
• 🎁 Mining shares may present a buying opportunity if gold reaches these support levels.
• 🌐 Freeport-McMoRan (FCX) could be a put candidate if copper continues to decline, potentially indicating a global slowdown.
• 🍉 Caution is advised on being too bullish on the dollar in the short term.
• 👨‍🎨 Market sentiment towards gold is currently bearish, with the pain trade being to the downside.
• 😘 FCX has shown sideways movement and a recent bounce off 12, suggesting potential downside if copper retests lows.

Questions & Answers

Q: What is the short-term outlook for Euro USD?

The Euro USD may make a move towards 1.25-1.30 if it can penetrate certain levels. However, it is advised to be cautious about being too bullish on the dollar.

Q: What is happening with gold?

Gold is undergoing a corrective move downwards and has key support levels at 1250-1260. If these levels are breached, further declines towards 1240 are possible. This may present a potential buying opportunity in mining shares.

Q: What is the potential trade idea relating to copper?

Freeport-McMoRan (FCX) could be a put candidate if copper continues to decline. After peaking near 14, FCX has moved sideways and a recent bounce off 12 appears corrective. If copper retests lows, FCX could see further downside.

Q: What is the overall sentiment regarding global economic conditions?

There is a belief in a potential global slowdown, which is why caution is advised in certain trades. FCX is mentioned as a possible indication of this sentiment.

Summary & Key Takeaways

• Euro USD has potential for a short-term move towards 1.25-1.30 if it surpasses certain levels, but caution is advised on being too bullish on the dollar.

• Gold is experiencing a corrective move downwards, with key support levels at 1250-1260. Potential longside opportunities in mining shares at those levels.

• Freeport-McMoRan (FCX) may be a put candidate if copper continues to decline, as there is a possibility of a global slowdown.