Gold has tested the key $1800 a few times now and so far unable to break above it. Yet, it hasn't created a bearish reversal there either. Not yet anyway.
Today's hotter-than-expected PPI print called into question the “peak inflation” narrative, although UoM's survey showed inflation expectations fell.
Gold traders will be facing one of the most important...
Given the optimism over China re-opening, oil is not doing great at all. Brent looks like it is heading to $80 a barrel from here.
The latest weakness of course has a lot to do with the OPEC+ deciding against even steeper output cuts than those agreed in October. At the weekend, the group agreed to stick to its oil output targets.
In October, the OPEC+ had...
On March 7th, EUR/JPY made a low print of 124.40. Since then, the pair has been moving higher in an ascending wedge formation. On October 21st, the pair attempted to breakout above the top trendline of the pattern, reaching an intraday high of 148.40. However, Japan’s Ministry of Finance stepped in and intervened in the fx markets by buying Yen.
That was the...
Following a weak ISM manufacturing PMI report, recession concerns have seen US stock markets drop after yesterday's Powell-inspired rally.
It is worth keeping an eye on the major indices such as the Dow Jones.
The DJIA has gone back below the August peak at 34288. A close well below this level would be a bearish outcome as it would point to a false breakout....
Worth watching bond yields here as they have started to creep higher - could spell trouble for gold, silver, Nasdaq et. al.
The 10-year has found some support from the upper end of the key support area between 3.50% to 3.65%.
Although it is not an outright bullish signal for the 10-year yield, there's the possibility that it could stage a more meaningful...
Supported by expectations the Fed is going to reduce the pace of policy tightening, the EUR/USD has risen above the 1.04 handle, after recently it recaptured 1.0340, which was the 2017 low.
For now, the path of least resistance remains to the upside, as traders decide whether to push rates decisively above the 200-day average.
Among the upside targets, last...
GBP/USD reached a near-term low on November 10th at 1.1334. As the US Dollar continued to move lower, GBP/USD continued to move higher. The pair reached a high of 1.2034 on November 15th and pulled back in a pennant formation on the 240-minute timeframe. As price reached the apex of the pennant, it broke out to the topside on November 22nd. The next day,...
The EUR/JPY failed to break out above its trend line. Instead, it is currently displaying a large bearish engulfing candle. Watch out below!
Speculation that we may have reached peak inflation has helped to boost the appetite for low-yielding assets today, including the yen. Growth concerns amid soft PMI data as revealed by weaker PMI numbers from around the...
Gold and silver gave up much of their earlier gains. Questions remains as to whether precious metals will be able to rise significantly from here in this macro environment.
Although the case for peak inflation has grown, the fact that interest rate increases are not yet pausing in the US and elsewhere means holding zero-yielding gold and silver represent an...
The industrial metal topped on March 7th at 5.0395. However, for the next 3 months, HG sold off aggressively and made a July 15th low at 3.1315! Fears of increased inflation, increased interest rates, and increased Covid cases in China led to a fear of lack of future demand. Copper traded between 3.2430 and 3.7830 from mid-July and November 10th, when it gapped...
Gold has been trending lower over the past couple of days, potentially catching down with copper and oil.
do watch out for a sharp correction in the metal, with oil and copper already falling sharply on Chinese demand concerns this week.
Gold had been able to hold its own relatively well so far, but as we warned in the previous post, a correction was likely....
US indices bounced off their lows in the afternoon session after trading lower along with a slumping yuan, oil and copper. WTI (-4.0%), silver (-2.5%) and copper (-2.0%) have all sold off on the back of a rebounding US dollar and as sentiment was hurt by concerns over China’s economic health amid the latest Covid outbreak.
At the time of writing, the S&P had...
After hitting a new high in this recovery phase, gold gave up its gains to turn flat on the day despite the softer PPI print. Though there are no concrete signs of a bearish reversal yet, the metal has nonetheless turned lower from an important technical area, which means the bulls should proceed with some caution after what has been great few days for the...
Last week’s fall in the US Dollar after the October’s CPI was released has been quite rapid. Add in hawkish comments from the SNB’s Jordan, and it’s a recipe for USD/CHF to head lower. Indeed, the pair did move from a local high of 1.0147 down to 0.9398 in just three days.
Is it time for USD/CHF to bounce? Notice the RSI in the bottom panel of the chart. It...
After last week’s big 5% rally, gold has arrived at a major inflection point around $1770 to $1880 area, where it may encounter some resistance as the dollar sell-off potentially pauses.
Gold bulls would certainly want to see some upside follow-through, but a bit of consolidation and pullback wouldn't be a bad thing as it will help to work off short-term...
The much softer-than-expected US CPI data has lifted everything, with the Dow rising by 1000, German DAX hitting a 5-month high and GBP/USD surging by 300 pips no less.
It has even helped to underpin cryptocurrencies after what has been a very painful few days in BTC's history.
Bitcoin has risen back above $17K and was trying to get back above the June low and...
USD/MXN has been moving lower since April 2020 in a descending triangle. On a weekly timeframe, the pair found a zone of support between 19.5491 and 20.0338. USD/MXN bounced a number of times and tested the top downward sloping trendline of the channel, failing each time. As USD/MXN nears the apex of the triangle, is it ready to break lower? On May 30th, the...
