DXY
XAUUSD 2/2/25XAUUSD remains clearly bullish this week. We can see this through price action and, of course, the Orion bias, which is also bullish. We've maintained a bullish bias since the last weekly low was created, and we’ve successfully followed this entire upward move over the past couple of weeks.
If you followed along, congratulations on a strong long-term trade! However, we are now focusing on intraday and day trading opportunities. Please note that we currently have no target, as price is sitting around the all-time high. We expect price action to continue reaching new highs, but exercise caution, as we are in an exploration phase, meaning price is moving into uncharted territory. Look for rebalancing, which presents opportunities to buy back into the next expansive move.
We have the V2 Entry Level Indicator running, and the dotted lines represent our high-volume lows—key areas of interest for identifying expansive moves into new highs. Right now, we have two priority lower areas, which we will monitor for potential re-accumulation of long positions. However, since we are in an exploration phase, price may continue moving higher without retracing to these levels.
Watch for one of two scenarios:
A pullback into the lower areas, followed by an expansive move upward.
Continuous expansive moves, with new lows developing along the way.
Regardless of how price unfolds, our bias remains the same unless the bias changes with the daily—we anticipate further expansion to the upside.
Trade within your risk parameters, follow your rules, and always let Orion guide you.
EURUSD 2/2/25Heading into this week, EUR/USD is the first pair we are looking at. We have a new filter applied with our Orion Entry Level V2, as well as the Orion System running in the background.
The bias has been shown as bearish, so we are looking for the following. Note the two pre-established highs above, along with a high that is yet to be recognized, as we have not joined the new trading week to confirm that candle closure. That gives us three highs to target and ultimately a heavy cluster of lows marked as the lowest target, along with a high-volume low just below the current price.
We're looking for an expansive move down, but overall, we would love to see a pullback into the highs beforehand, remembering that the higher timeframe is giving us our bearish bias. So because of this, we will look to follow it.
Remembering that we only take trades if the entries are given, and until we hit the points we want to trade from, we do nothing more than let the market run its course.
Trade to your risk, follow your rules, and always let Orion guide you.
WTI on high time frame
"Dear traders, concerning WTI, the price has touched $73 and has been technically rejected from this level. Candle formations on higher time frames suggest a potential increase in price. Considering the political and geopolitical factors outlined in this article (www.tradingview.com), if the price can hold above the $73 zone, my view is that the next target could be $76."
If you have any specific questions or need further assistance with your message, please let me know!
The Market Matrix - Gold, Crude, DXY & Nasdaq for Feb 1 2025This weeks edition of The Market Matrix.
Disclaimer
The information provided in this content is for educational and informational purposes only and should not be construed as financial advice, investment recommendations, or an offer to buy or sell any securities or financial instruments.
Trading financial markets involves significant risk, including the potential loss of capital. Past performance is not indicative of future results. You are solely responsible for your trading decisions and should conduct your own research or consult with a licensed financial advisor before making any financial decisions.
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Dollar - Gold Market CorrelationThe Dollar (DXY) has closed extremely bullish this week. This is another confluence that we can see Gold (XAUUSD) start moving down soon or later.
As you all know the DXY & XAUUSD have negative market correlations, so when one moves up the other move down. The Dollar has been correcting down recently, which has led to Gold pushing up & creating new ATH’s. However, I now expect Dollar bulls to resume, which means we can see Gold get ready for a bear market in the mid term.
U.S Dollar Index (DXY) Rising Wedge Potential Reversal !!U.S. Dollar Index (DXY) on a 2-day timeframe, a rising wedge pattern. Here’s a breakdown of the technical analysis:
Key Observations:
1. Rising Wedge Pattern:
The price has been following an upward trajectory within two converging trendlines.
A rising wedge is typically a bearish reversal pattern, meaning a breakdown could lead to a decline.
2. Recent Price Action:
The index has recently dropped from its recent high near 108.107 and is now trading at 107.807.
This suggests that selling pressure is increasing.
3. 200 EMA Support:
The 200-period Exponential Moving Average (EMA) is currently at 104.510.
This is a key support level—if the price breaks down from the wedge, it may test the 200 EMA.
4. Potential Scenarios:
Bearish Breakdown:
If DXY breaks below the lower wedge trendline, the index could drop toward the 104.5-105.0 level (200 EMA).
A further breakdown may lead to a decline toward 102-100 levels.
Bullish Continuation:
If DXY bounces from current levels and reclaims the upper wedge resistance, it could push toward 110-112.
However, this is less likely given the wedge structure.
Conclusion:
The chart suggests a potential reversal in DXY.
A breakdown from the rising wedge could lead to a decline toward 104-105.
If bulls regain strength, DXY may attempt to push higher, but upside is limited.
Traders should watch for confirmation of a breakdown or bounce before making decisions.
XAUUSD - Gold hits new ATH!Gold is trading above EMA200 and EMA50 on the 1-hour timeframe and is in its ascending channel. A correction towards the demand zone will provide us with the next buying opportunity with a good risk-reward ratio.
Donald Trump has announced his intention to impose a 25% tariff on imports from Canada and Mexico due to the fentanyl issue, emphasizing that these tariffs will take effect starting Saturday. He also stated that China will eventually have to pay tariffs as well, and that the U.S. is already implementing trade restrictions against Beijing.
Trump further asserted that the era of passively watching BRICS nations attempt to distance themselves from the U.S. dollar is over. He declared that these countries must commit to neither creating a new BRICS currency nor supporting any alternative to the powerful U.S. dollar. Otherwise, they will face 100% tariffs and lose access to the thriving American economy. He insisted that BRICS has no chance of replacing the U.S. dollar in global trade, and any country attempting to do so will face severe economic consequences.
(Translation continues…)
Continuation of the English Translation:
Trump’s repeated tariff threats have raised concerns among American consumers and introduced economic risks for the United States. Even the mere discussion of such tariffs can have significant economic effects by influencing consumer behavior. Evidence suggests that many Americans are seriously worried about the potential consequences of these policies.
According to a survey conducted by economists from the University of Texas, the University of California, and the University of Chicago, Americans expect substantial tariffs to be imposed on all major trade partners—50% on Chinese imports and 35% on imports from Canada and Europe. Contrary to Trump’s claims, most citizens believe these tariffs will directly impact them by driving up prices. When asked about a hypothetical 20% tariff, half of the respondents stated that the majority of the costs would be passed directly to consumers.
Political differences are also evident in the perception of these tariffs. Democrats and Republicans disagree on the extent to which consumers will bear the costs. Democrats estimate that 68% of the tariff burden will fall on consumers, whereas Republicans believe it will be around 41%. Regardless of political stance, the financial strain from these tariffs is expected to be significant, particularly for consumers already weary of inflation.
Both the public and economists recognize that tariffs on imports can also raise prices for domestically produced goods. The economic impact of tariffs was clearly demonstrated during Trump’s first term. A study found that the tariffs imposed in 2018 on washing machines from South Korea and China led to a nearly equivalent price increase for washing machines in the U.S.—and even drove up the price of dryers as well.
Even if these new tariffs are not implemented, their mere threat can lead to price hikes. Many consumers, anticipating higher costs, are choosing to make purchases in advance. In a survey, 43% of respondents stated that they would buy products before the tariffs take effect to avoid potential price increases.Another survey in January found that 20% of people believed that now was the right time to buy durable goods because prices were likely to rise.
Businesses are responding in a similar fashion. Many companies are stockpiling inventory ahead of potential tariff hikes or shifting their supply chains to countries that would not be affected. This behavior has contributed to a surge in exports from China to the U.S., with December marking the second-highest export level on record—at least partly driven by efforts to preempt new tariffs.
These strategies, however, come with additional costs, much of which will likely be passed on to consumers. The COVID-19 pandemic provided a clear example of how supply chain disruptions can lead to widespread cost increases. For instance, higher import costs for auto parts eventually resulted in more expensive vehicle repairs and insurance premiums.
Stimulating inflation under current economic conditions—even temporarily—would be costly. The Federal Reserve has paused further interest rate cuts, waiting for clearer signs of sustained inflation reduction. Rising prices for key goods, particularly automobiles, halted progress in lowering inflation in the fourth quarter of last year. Additional inflationary pressures caused by tariff expectations could delay the Fed’s next rate cut and keep interest rates elevated for an extended period. The uncertainty surrounding future tariffs reinforces the Fed’s cautious stance.
Inflation is not the only concern stemming from tariff threats. A third of survey respondents indicated that the likelihood of widespread tariffs would lead them to cut spending and increase savings. The greater the uncertainty surrounding trade policy, the stronger the incentive for precautionary savings.
American consumers have been the driving force behind the nation’s economic recovery. However, the recent wave of tariff threats has created deep concerns, potentially putting the U.S. economy—widely regarded as one of the strongest in the world—at risk.
GBPUSD - Will the pound return to the bullish trajectory?!The GBPUSD pair is located between the EMA200 and EMA50 on the 4-hour timeframe and is moving in its ascending channel. In case of a downward correction, the pair can be bought within the specified demand zone.
British Prime Minister Keir Starmer stated that the government has clearly received the message regarding deregulation. He emphasized that simplifying regulations and removing certain restrictions could have a positive impact on economic activities and businesses. Starmer also highlighted the transformative potential of artificial intelligence in the economy. He added that the UK’s economic outlook is improving and that the government’s top priority is “growth, growth, and growth.” Additionally, he pointed to the significant trade partnership between the UK and the United States, stressing that this economic collaboration could play a key role in the country’s future growth.
Meanwhile, analysts at TD Securities believe that the Federal Reserve will refrain from cutting interest rates in the first half of this year. This decision is attributed to the persistence of core inflation and the resilience of the U.S. economy in the first quarter, which keeps policymakers cautious. Furthermore, the potential economic impact of new tariffs under a Trump administration in the second quarter reinforces this outlook.
Although the Federal Reserve officially bases its decisions on economic data, TD Securities argues that political influences are becoming increasingly significant in shaping monetary policy. According to TD, Trump’s role in U.S. monetary policy is growing. As a result, the institution maintains a bullish outlook on the U.S. dollar and sees any rate cuts as buying opportunities, particularly against the euro, Canadian dollar, and British pound.
At the same time, analysts at Goldman Sachs believe that the Federal Reserve will wait for further progress in reducing inflation before proceeding with additional rate cuts. However, they still expect the Federal Open Market Committee (FOMC) to implement two 0.25% rate cuts later this year, in June and December, with an additional cut projected for 2026.
Additionally, economists at Citi anticipate that the Federal Reserve’s preferred inflation gauge—the 12-month PCE inflation rate—will decline in the coming months as the effects of the sharp price increases from early 2024 begin to fade. They also note that both the six-month and three-month core PCE inflation rates are on a downward trajectory and are expected to fall below 2.5%.
Gold XAUUSD Possible Move 30.01.2025The price is currently testing a well-defined descending trendline, which has acted as a strong resistance level. The analysis suggests two possible scenarios:
Bullish Breakout & Retest:
If the price successfully breaks above the trendline and confirms a retest as support, we could see bullish momentum leading to the 2,785.04 resistance level.
A clean breakout with strong volume would further validate the upside potential.
Bearish Rejection & Retest:
If the price fails to break above the trendline and gets rejected, we could see a retest of the trendline followed by a strong move downward.
The next major support level in this case would be 2,730.75, where price could find buying interest.
Traders should watch for confirmation on the breakout or rejection before taking a position. The reaction to the trendline will be the key factor in determining the next move.
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AUDUSD - 4H Why we need to Buy?!The FX:AUDUSD has shown strong bullish momentum after hunting liquidity below the 2022 low on the daily and weekly timeframes.
✅ Breakout & Retest: The pair successfully broke the descending channel's resistance and is now pulling back to the breakout zone, confirming its strength.
✅ Higher High Formation: A higher high structure supports the bullish bias, indicating potential continuation towards previous highs and beyond.
📌 I expect another bullish push from this key support zone.
🔔 Follow for real-time updates!
XAUUSD - Gold after the Fed meeting!Gold is above the EMA200 and EMA50 on the 1-hour timeframe and is in its ascending channel. If gold rises to the previous ATH, we can look for buying opportunities after a price correction. A correction of gold towards the demand zone will provide us with the next buying opportunity with a good risk-reward ratio.
During its meeting last night, the Federal Reserve decided to keep interest rates steady within the 4.25% to 4.5% range, signaling that it has no immediate plans to lower them. Jerome Powell, the Fed Chair, emphasized that the U.S. economy continues to experience strong growth, with a resilient labor market. According to him, current interest rates are no longer as restrictive to economic activity as they once were. He stated that the central bank prefers to see more concrete evidence of sustained inflation reduction before making any adjustments, while also assessing the economic impact of Donald Trump’s policies in areas such as tariffs, immigration, and taxation.
In its statement, the Federal Reserve acknowledged that inflation remains “somewhat high,” but it omitted previous references to progress toward the 2% target. Powell clarified that this change does not signal a shift in policy but rather reflects the need for greater confidence in the persistence of inflation’s downward trend.
The Fed Chair also stressed that the central bank cannot accurately predict the impact of Trump’s new policies before they are implemented. He noted that potential tariffs and immigration changes could have conflicting effects: they might contribute to inflation by raising costs, while also acting as a deflationary force by improving productivity.
Powell made it clear that a rate cut in March 2025 is “unlikely,” and future decisions will depend entirely on economic data, particularly inflation and employment indicators. If Trump’s trade policies or labor shortages caused by the expulsion of migrants unexpectedly drive inflation higher, the Federal Reserve may not only delay rate cuts but could even consider raising rates instead.
In response to these remarks, Trump criticized Powell, accusing him of failing to control inflation. The U.S. President stated on Truth Social that his administration would curb inflation by ramping up domestic energy production, reducing regulations, balancing international trade, and revitalizing American manufacturing. Meanwhile, Powell told reporters that he has not been in contact with Trump recently and would not respond to criticisms from the White House. Trump also accused the Federal Reserve of focusing on issues like climate change, diversity, equity, and gender ideology instead of prioritizing economic matters.
David Solomon, CEO of Goldman Sachs, believes that the Federal Reserve will maintain interest rates within a narrow range throughout 2025 unless there is a significant shift in inflation. He highlighted that rising costs in the services and food sectors remain key economic challenges, which will likely limit any major policy changes in the near term.
DXY Will Move Higher! Long!
Please, check our technical outlook for DXY.
Time Frame: 12h
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is testing a major horizontal structure 107.470.
Taking into consideration the structure & trend analysis, I believe that the market will reach 109.002 level soon.
P.S
The term oversold refers to a condition where an asset has traded lower in price and has the potential for a price bounce.
Overbought refers to market scenarios where the instrument is traded considerably higher than its fair value. Overvaluation is caused by market sentiments when there is positive news.
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USDCAD - Where will the Canadian dollar go?!The USDCAD pair is above the EMA200 and EMA50 on the 4-hour timeframe and is moving in a range. As long as the pair is in this range, the best thing to do is to sell at the top and buy at the bottom. A break of this range to the top or bottom will allow us to continue its rise and fall.
The Bank of Canada has announced its decision to lower the policy interest rate to 3% after six consecutive reductions. Additionally, it confirmed the end of quantitative tightening (QT) and the gradual resumption of asset purchases starting in March. These measures reflect the central bank’s effort to stabilize the economy and support sustainable growth.
The Bank of Canada emphasized three key points:
• Inflation has approached the 2% target. After a period of high volatility, inflation expectations have moderated, and price pressures—except in the housing sector—have eased.
• Lower interest rates have increased household spending power and gradually boosted economic activity, particularly in the housing sector and durable goods purchases such as automobiles.
• New U.S. trade policies remain a significant risk to Canada’s economy. Any escalation in trade tensions could negatively impact economic growth.
One of the first sectors to benefit from the rate cut is the housing market.Lower borrowing costs are expected to attract new buyers; however, the central bank anticipates a more balanced increase in housing prices over time. The recent slowdown in construction activity and declining rental prices indicate that investment appeal in this sector has somewhat diminished.
For investors and entrepreneurs, the lower interest rates present an opportunity to secure cheaper financing and expand their businesses. Sectors such as startups, technology, and export-driven manufacturing are expected to gain the most from this policy.
With inflation stabilizing around 2% and the economy recovering, the Bank of Canada sees no immediate need for further rate cuts. However, potential economic disruptions from U.S. trade policies could alter this outlook.
Reports suggest that if U.S. President Donald Trump proceeds with a proposed 25% tariff on Canadian imports, the Canadian government plans to implement financial aid measures similar to those used during the COVID-19 pandemic. However, these programs require parliamentary approval, and given that the Liberal government lacks a parliamentary majority, there is no guarantee they will pass.
All opposition parties have expressed their intent to oust the current government, meaning any economic stimulus package would require support from the New Democratic Party (NDP). The NDP has backed the Liberal government over the past three years. The Canadian Parliament is currently adjourned until March 24, allowing the Liberal Party to select a new leader to replace Justin Trudeau, with Mark Carney as a likely successor. However, an early leadership decision may occur before the scheduled date.
Tiff Macklem, Governor of the Bank of Canada, stated that household debt is not a sustainable driver of consumption growth. He expressed greater concern about declining business investment due to tariff threats, arguing that such policies could have a more significant impact on the Canadian dollar than interest rate differentials.
He also reaffirmed that the Bank of Canada believes inflation has been successfully contained. The central bank aims to ensure that any CPI increases resulting from tariffs remain temporary and that the consequences of trade policies are managed to minimize sudden economic disruptions.
Copper - Markets are waiting for new moves to start?!Copper is above EMA200 and EMA50 on the 4-hour timeframe and is moving in its descending channel. An upward correction of copper will provide us with a good risk-reward selling position. If the downtrend continues, we can buy copper in the next demand zone.
The Monthly Metals Index (MMI) for copper remained largely range-bound, experiencing a slight decline of 0.65% from December to January. Meanwhile, copper prices continue to react to the new U.S. administration and potential shifts in trade policies.
Ahead of President Trump’s inauguration, copper prices on the Comex exchange began breaking out of their previous range. By mid-January, copper prices had reached their highest levels since early November. This movement was likely driven by traders anticipating the impact of potential tariffs, some of which could affect the copper market. In contrast, prices on the London Metal Exchange (LME) saw only modest gains, creating a temporary price divergence between the two exchanges.
Typically, Comex and LME copper prices move in tandem, making any significant deviations between them noteworthy. Since 2019, the two markets have shown a correlation of 99.76%, with Comex prices averaging a $19 per ton premium over LME prices. However, by January 14, this premium had widened to $402 per ton. It remains uncertain whether this premium will persist in the coming years or revert to historical levels, as seen in previous instances.
Historically, such price divergences have been temporary. One notable example was a short squeeze on Comex in late May, which marked the end of the Q2 2024 rally in base metals. During this period, the price gap between LME and Comex surged to $688 per ton, with Comex copper prices reaching a record high of $11,257 per ton.
However, this spread quickly narrowed due to shifts in trade flows toward the U.S. market. Although Comex copper contracts attract similar market participation as LME, lower inventory levels make them less liquid. Consequently, when stockpiles decrease, Comex prices become particularly susceptible to sudden surges.
Another factor contributing to price divergence was the October port strike, which led to a significant increase in Comex prices. Before the three-day strike began, Comex copper prices had already risen sharply, pushing the spread to $292 per ton until mediators brokered a resolution.
Market volatility remains a key risk for copper prices as traders await more details on which products and countries will be affected by new trade barriers. This uncertainty could either drive further price increases or trigger sharp declines if reality fails to align with market expectations.
Some of the tariffs proposed by President Trump are likely to serve as negotiation tactics, meaning they may not be fully implemented or could be abandoned if alternative trade agreements are reached. Meanwhile, reports suggest that the Trump administration is considering a phased approach to tariff implementation, which may help mitigate market reactions.
A closer look at Trump’s latest stance on China indicates a willingness to de-escalate tensions and increase engagement. However, his previous trade policies were highly aggressive, often involving heavy tariffs on Chinese imports.