Trade Ideas For Swing Traders

Hello traders. There are some fantastic opportunities shaping up in the financial markets currently, and we are looking to make the most of them.

War Brewing? Gold, Oil, USD to trade higher!

Russia may move deeper into the Ukraine, igniting this tense situation into an all out hot war. The risk of the situation is already being factored into global financial markets, with EUR/USD moving lower towards parity, Oil, gold and the USD all trading higher. In addition we are dealing with rapidly rising US inflation, and the Fed playing catch-up with interest rates. These are the charts we’re watching and what we are looking for on them.

AU200 Index

The AU200 (Australian top 200 index) has formed a double top pattern after breaking the long term recovery trendline. As mentioned, the tense situation in Russia & the Ukraine combined with US inflation is already weighing on stocks. The US equity market is progressively moving lower and the AU200 is slowly following suite. This is also a fantastic hedge opportunity for those ASX equity holdings.

EUR/USD 

The Euro is trading lower as Omicron cases have battered the local economy, and fears of war in Western Europe rise. Technically the pair has rebounded from the 61.8% retracement zone, and has performed a fake-out of the December trading range. I’m looking for downside to continue into the 127% extension level around 1.1050.

AUD/USD

Similarly we are looking for the AUD/USD to fall as consumer spending in the NSW state has dived lower than during the pandemic lockdowns. Technically the pair has formed a double pattern, following a month long correction. As traders return to their desks after the holiday period we’re seeing these markets wake up, and are looking for the long term trends to continue.