USDJPY → Consolidation before continuing growthFX:USDJPY is consolidating after strong growth. A promising dollar and weak japanese central bank policy form a medium-term bullish potential in the currency pair
The currency pair returns almost all of the strong fall associated with last year's course of rate cuts in the U.S., rate hikes in Japan and interventions that were actively conducted by the Central Bank of Japan. What was the outcome of all the actions? It was all in vain. The price turned around and almost approached 162.0.
At the moment the emphasis is on consolidation, which has been forming for several weeks. We have clear boundaries, trend and strong levels to use in our trading.
Resistance levels: 158.1
Support levels: 156.74, 155.88
The trigger for me is the resistance at 158.1. A breakout and price consolidation above this level will be a confirmation that we are ready to move further towards ATH. I do not exclude the fact that now the price may not be let in and the currency pair will form a correction to the consolidation support before further growth
Regards R. Linda!
DXY
Bearish drop?US Dollar Index (DXY) has reacted off the pivot and could drop to the 38.2% Fibonacci support.
Pivot: 109.64
1st Support: 108
1st Resistance: 110.93
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DXY Continues bullish momentum from 108.600For the DXY, I anticipate a corrective move, as the price has recently broken structure to the upside. This break has created new demand zones, which we can expect to act as strong support, allowing bullish momentum to continue.
This week, my focus will be on the 8-hour demand zone around 108.600. If the price mitigates this zone, I’ll look for lower time-frame confirmation to enter a trade. My target will be the 8-hour supply zone above, where I anticipate some bearish pressure may emerge.
However, if the price moves lower and breaches the 8-hour demand zone, I’ll shift my attention to the extreme 5-hour demand zone for a potential buying opportunity, aligning with the overall bullish trend.
Let’s stay sharp and make the most of this week. Let’s crush Q1!
EURUSD 5/1/25Heading into the First Trading Week of the Year
We’re ready to dominate as always, with Orion leading the way and providing a clear bias. This week, we continue with our bearish outlook, looking to trade from the highs into the lows outlined here, with the target clearly defined.
Before diving in headfirst, let’s cover a few key points:
There’s currently a large gap between the highs and the current price.
Based on this, we need to be mindful of the following scenarios:
A short-term high could form before reaching the main highs shown here.
A new low might be created, giving us an additional target low.
These scenarios suggest we could see some form of manipulation before a move higher. For example, the price could create new highs, sweep them, and then form a new short-term low.
While this wouldn’t invalidate the larger bearish move, it could shake out many lower time frame traders.
Please also take note of the heavy liquid we have stored above the current highs we are looking at.
Trade safe and stick to your plan.
DXY Is Going Up! Long!
Here is our detailed technical review for DXY.
Time Frame: 9h
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is approaching a key horizontal level 108.922.
Considering the today's price action, probabilities will be high to see a movement to 110.143.
P.S
Please, note that an oversold/overbought condition can last for a long time, and therefore being oversold/overbought doesn't mean a price rally will come soon, or at all.
Like and subscribe and comment my ideas if you enjoy them!
GOLD → Retest of the level after its breakoutFX:XAUUSD inside the new flat is looking for strong support. The fundamental backdrop is complex and amid high risks, buyers are looking for a safe haven
Fundamentally, the situation is complex, the weakening of gold is influenced only by the hawkish stance of the Fed and the growth of the dollar. But the pressure for further growth is exerted by many other factors: the escalation of the conflict in the Middle East and Eastern Europe. Trump's protectionist policies toward europe, asia. Geopolitical risks in the world.
Technically, the price is testing a strong support area after breaking through resistance.
Below is the key Fibo level of 0.5 - 0.7, which may play the role of the lower boundary from which the bulls will start an aggressive game.
Support levels: 2637, 2630, 2616
Resistance levels: 2649, 2665
In general, I am more inclined for a medium-term decline, but the local situation is quite tense and complicated.
If the bulls hold 2630 - 2640, the gold will continue to rise
If the bulls lose, the price will form a deeper correction with the possibility of further prolongation of the fall.
Regards R. Linda!
2025 DXY ForecastDollar has finally broken out of the range that we have been forming for the past 2 years 2023/2024 to the upside, supporting my previous prediction bullish and I am now confident that we will reach that 115 level if we hold and stay above the support at 107.5, further more I will only look to trade bearish if we break and trade below significant lows like the one at 105.5 if that happens I will be thinking of targeting the 97 area...
Analysis of EUR/USD: A Strategic Insight for TradersThe EUR/USD currency pair has extended its rally for the third consecutive day, trading near the 1.0430 level during Monday’s Asian session. This uptick is primarily driven by remarks from members of the European Central Bank (ECB) Governing Council and expectations of delayed interest rate cuts in the Eurozone. However, the hawkish tone of the Federal Reserve (Fed) and a stronger U.S. Dollar (USD) could cap the Euro’s gains in the short term.
Fundamental Factors Influencing EUR/USD
European Central Bank (ECB)
Robert Holzmann, a member of the ECB Governing Council, stated that further rate cuts might be delayed. He highlighted recent inflation spikes and emphasized the inflationary pressures stemming from the Trump administration’s tariff policies, which may slow economic growth but increase inflation.
Delayed Rate Cut Expectations: Markets anticipate the ECB to slow down rate cuts due to rising inflation and the need for economic stabilization.
U.S. Federal Reserve (Fed)
The Fed reduced rates by 25 basis points during the December meeting, but the dot plot indicates only two rate cuts anticipated for 2025.
Fed Chair Jerome Powell: He reiterated that the central bank would approach further rate cuts cautiously.
Impact on USD: The Fed's hawkish messaging has bolstered the USD, acting as a counterweight to the EUR/USD rally.
Economic Policies under the Trump Administration
Tariffs and Tax Cuts: The administration’s policies are expected to intensify inflationary pressures, potentially altering the Fed’s monetary policy outlook in favor of the USD.
Short-to-Medium Term Outlook for EUR/USD
Bullish Scenario : Signals of delayed ECB rate cuts and improved Eurozone economic data could sustain support for the Euro.
Bearish Scenario : Continued hawkish Fed messaging, coupled with strong U.S. economic data, could exert downward pressure on EUR/USD..
Technical Analysis: Pivotal Levels in Play
Weekly Momentum: Momentum indicators on the weekly timeframe highlight persistent selling pressure, aligning with the prior bearish analysis.
Key Support Levels: The price is trading near the confluence of the lower boundary of a neutral channel and the median line of the Andrews Pitchfork, intensifying the sensitivity of this zone.
Potential Breakdown: The momentum suggests a higher likelihood of breaking below this support unless weekly price action signals a reversal by surging and breaking above the 1.0534 resistance level.
Conclusion and Call to Action
This analysis outlines critical fundamental and technical elements shaping the EUR/USD’s trajectory. With key macroeconomic events and technical levels at play, traders should stay vigilant for decisive moves.
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XAUUSD - Gold reached its previous day's target!Gold is above the EMA200 and EMA50 in the 4-hour timeframe and has exited its short-term bullish channel. The correction of the price of gold towards the demand zones will provide the opportunity to buy it with the appropriate risk reward.
In the early days of 2025, gold prices surged by over $40, regaining some of the losses from December and once again capturing investors’ attention. Although December’s decline in gold prices was not significant, it was disappointing for many investors—especially considering the positive news at the start of December 2024 that the Chinese central bank had resumed its gold purchases after a months-long pause.
Several key factors are currently shaping the outlook for the gold market. First, the release of China’s economic data on January 7 is expected to play a crucial role in influencing the market. Second, the weak start to 2025 for Chinese equities and domestic investors’ disappointment with the lack of tangible economic stimuli, particularly in the consumer sector, have acted as supportive factors for gold.
Additionally, the Federal Reserve’s interest rates and the strength of the US dollar remain important elements to watch. While US bond yields dipped slightly today, the dollar remains strong. For gold to replicate its impressive 2024 performance, a reversal in the dollar’s upward trajectory will be essential.
Gold had a very strong performance in 2024, but it now appears to be entering a phase of range-bound movement for a period. Historically, gold has exhibited back-and-forth fluctuations, and with US interest rates continuing to rise, this trend could work against it. Analysts estimate that the $2,500 level could serve as a price floor in the first quarter of 2025. Any price dips are likely to attract buying pressure, though a significant upward breakout is not expected. A key factor that could support gold would be a decline in the 10-year US Treasury yield.
For instance, if the 10-year yield drops below 4%, it could trigger a significant rise in gold prices. However, there is little interest in selling gold under current conditions.It is predicted that gold’s behavior in 2025 will resemble its performance in 2021, where buyers were present but no substantial upward movement occurred.
Should gold break above the $2,800 level, this could trigger major changes and push prices toward the $3,000 mark. It would not be surprising if this happens at some point during 2025. However, the first few months of the year are expected to favor range-bound price movements.
GOLD → Breaking the resistance level. Growing interestFX:XAUUSD enjoys interest despite the growing dollar. Geopolitical and economic crisis is the reason for seeking safe harbor. The price is breaking resistance and trying to renew local highs
On the first trading day of the new 2025, gold rose along with DXY amid escalating geopolitical conflicts in the Middle East and eastern Europe and rising tensions around the upcoming policies of Trump and the Fed.
Traders are awaiting US manufacturing PMI data from ISM and the Fed President's speech due later on Friday for more trade stimulus for the gold price.
Support levels: 2649, 2639
Resistance levels: 2675, 2690
A false breakdown of key support areas is possible. If after the false breakdown the bulls hold the defense above 2639 - 2649, gold may strengthen to 2675 - 2690 in the short term.
Regards R. Linda!
NZDUSD - The uptrend of the dollar is over?!The NZDUSD currency pair is below the EMA200 and EMA50 in the 4-hour timeframe. In case of upward correction, we can see the supply zone and sell within that range with appropriate risk reward. A valid break of the support area will provide us with the continuation of the downward path of this currency pair.
At the beginning of 2025, the US dollar has continued its upward trajectory, solidifying its position as one of the leading global currencies. After delivering a strong performance in 2023 and 2024, the dollar has now risen by more than 1% against the euro and the British pound, outpacing other major currencies.
From an economic news perspective, recent reports have had little impact on the market. While data on jobless claims, affected by holiday factors, were assessed positively, reports such as construction spending and manufacturing PMI fell short of expectations. However, these statistics failed to create significant market movement, with US Treasury yields seeing only a slight uptick.
According to data published by S&P Global, the US manufacturing PMI for December 2024 stood at 49.4, a slight decline from 49.7 in November. This figure remains below the 50-point threshold, indicating contraction in manufacturing activity. Nonetheless, there has been a slight recovery from the mid-month figure of 48.3.
Manufacturing output in November declined for the fourth consecutive month, hitting its lowest level in 18 months. Additionally, new orders continued to fall, though at a slower pace compared to previous months. However, export orders experienced a steeper decline, primarily driven by economic weakness in Europe and Australia.
In the employment sector, there has been modest yet positive growth for the second consecutive month, reflecting manufacturers’ efforts to retain their workforce. Input cost inflation has reached its highest level since August 2024, largely due to concerns over trade tariffs and potential protectionist policies. Approximately 25% of firms attributed their increased purchases to tariff threats, highlighting concerns over the inflationary effects of such policies.
Despite current challenges, manufacturers are increasingly optimistic about the future. This optimism, which has reached its highest level in two and a half years, stems from reduced uncertainties following the elections and positive expectations of stronger economic growth and supportive government policies in 2025. However, the gap between current production levels and future expectations has reached its widest point in a decade, excluding the COVID-19 pandemic period.
The main driver behind the strength of the US dollar is capital inflows. While the US economy appears robust, this alone does not explain the dollar’s growth. A confluence of positive factors has made US assets attractive, with the country’s stock markets outperforming other global markets. Currently, a significant portion of global capital formation is concentrated in the US dollar and its markets.
Nevertheless, risks such as rising tariffs or restrictive fiscal policies could alter the dollar’s trajectory. For now, the market shows little concern about the Republican-led Congress, and the US dollar continues to assert its dominance in global markets.
Donald Trump, the US President-elect, recently tweeted that tariffs have brought immense wealth to the country and that he plans to continue these policies after assuming office on January 20. Trump also referenced border issues, calling Joe Biden the “worst president in US history.”
The chief asset strategist at HSBC Bank highlighted the hawkish messages from the Federal Reserve’s December meeting as a cause for concern. January is expected to be highly volatile, but these fluctuations could present intriguing investment opportunities.