Trading Plan for the European and US Market Session 5/08/22

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Charts Marked with anticipated entry setups in YELLOW and ideal setup in GREEN on market opens. There will be many possible scenarios shown so it is key to work off major levels and higher lows/lower highs once the price action unfolds.

PROCESS IS KEY….DEFINE LEVELS – MARK EXPECTED PRICE ACTION – TRADE THE SETUPS

All prices refer to the CFD pricing from the charts below off TD365.com. Opening times (AEST) are 10am SPI/N225, 11:15/30am HSI, 4/5pm DAX and UK100 and 10:30/11:30pm DOW and USTech100.

ASIAN MARKET SNAPSHOT FOR FRIDAY 5/08/22

As expected, the Asian markets were fairly tame ahead of the weekend….well all . German Industrial Production at 4pm AEST, CAD Employment Change and Unemployment Rate at 10:30pm AEST and US Non-Farm Employment Change at 10:30pm AEST.

Market Price Action was very contained in the US session and I would expect more of the same today!

CLICK HERE FOR ECONOMIC DATA OUT TODAY (AEST) 5/08/22

The DOW has edged higher in Asian market trading but remains below resistance at 32920. I expect to see a flush lower ahead of the Payroll data release to squeeze out some buyers. The number will be key to what happens next and a stronger number could see a push down into 32360 support. The US Tech 100 has continued to grind higher through Asian trade and added to the US sessions gains. I expect that price action is being held up but momentum is running out of steam so the Nasdaq could be set for a flush lower. The DAX Index has held the highs but set for a flush lower as buyers lock away some gains. Watching for a push below 13630 to clear out some buyers and then for price to range into the US data release. UK 100 Index is flushing lower into the European open to clear out some longs. I expect that price will hold below 7470 and above 7428 into the start of the US session (data release).

Cryptos have rallied through Asian market trading as sellers closed out shorts and support levels held. Both Bitcoin and Ethereum have pushed up into resistance levels which may see some short term selling pressure ahead of the data release.

Crude Oil has rallied up off 88.50 during the Asian market session as sellers locked in some gains to square up ahead of US Employment. Watching for a flush into 88.50 and for a higher low to hold…but it will depend on the numbers that are released. USD Index has rallied up off 105.700 in the Asian market session and I expect to see more grinding action until the Payrolls numbers are released ahead of the US session. If the numbers are weaker than expected. the USD should find sellers to push below 105.700…a stronger number and we will see a spike higher. Watch USD denominated currencies and gold for added volatility. USDJPY is bouncing as expected so watching to see if price can hold a lower high below 134.515 for a short entry setup.

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DOW Index

US Tech 100 Index

DAX Index

UK100 Index

Crude Oil

USD Index

Bitcoin

Ethereum

USDJPY


Disclaimer: the contents of this post are presented for informational purposes only. They should not be viewed as investment advice, nor a solicitation to buy or sell any financial securities. Investments in financial products are subject to market risk. Some financial products, such as currency exchange, futures, contracts for difference, options and warrants are highly speculative and any investment should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. Trading currency exchange, futures, contracts for difference, stocks, shares, options and warrants on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in currency exchange, futures, contracts for difference, options, stocks, shares and warrants you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with currency exchange, futures, contracts for difference, options, stocks, shares and warrants trading, and seek advice from an independent financial advisor if you have any doubts.

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