SELL… but wait, Why Sell?For an accumulation of reasons:
1. TVC:DXY Firstly did a fake breakout retest previous support. It got rejected and finally it will continue to go above106.8$ up until 108$.
2. According to technical analysis, gold is forming an obvious divergence when compared to RSI in the 1 hour timeframe. A strong correction is highly probable.
3. Michael Burry was right. Let’s take a minute to admit the fact that inflation is not as under control as analysts are trying to convey. Economic data proves the opposite.
4. Fed rate hikes I are certain for 2023, making Q1 2024 a certain hike period for the Feds with a new roadmap.
5. Gold have reached its all year liquidation levels compared to the volume of Sell postions taking place by VCs. (Read the news)
6. T-Bonds seems to grab investors’ attraction making gold seem having a lower ROI for the long term.
(This is not a financial advice nor financial analyst but rather my opinion supported with facts from the economy and news)
Dxyindex
GOLD SHORT TIME LONG Hello traders
First of all, let me say that with the possibility of a temporary ceasefire, we can have a price correction in gold
But in this position, we can get a long position in the short term by breaking the downward trend line
The loss limit is placed behind the formed pivot
The Fed has good reasons for raising interest ratesThe war is escalating and gold is increasing very strongly recently
Major common currencies are maintaining their current positions and rising momentum
However, now the energy crisis is gradually starting as most warring countries are cutting production and stopping supply to the whole of Europe.
For the above reasons, it is certain that the Fed will once again step in to avoid inflation and push interest rates to the top like previous hawkish speeches.
All eyes are on the Fed's keynote speech
Federal Reserve Chairman Jerome Powell is scheduled to deliver a major policy speech on October 19th. The aim is to convince the market that the relevant central banks will continue to keep the inflation regime in check, but perhaps not, and that there will be some "easing" going forward.
The first monetary policy plan was submitted to the New York Economic Club as the U.S. economy faces many pressing issues.
Inflation has improved recently, but U.S. Treasury yields are rising, sending mixed signals about the direction of monetary policy. While most markets expect the Fed to keep interest rates on hold, they still expect Powell to confirm and clarify officials' views on the current situation and long-term trends.
Luke Tilley, chief economist at financial services firm Wilmington Trust, said Chief Executive Officer Powell continues to talk about inflation risks given the strength of the economy and unexpected consumer spending in the third quarter. I predict that.
Essentially, chief economist Tilley expects Powell's message to be divided into three parts. First, the Fed had to raise rates quickly, and they did. Next, the Fed needs to set a maximum interest rate, which is at the heart of the debate. And finally, we need to figure out how long interest rates need to stay at this high level to bring inflation down to our 2% target level.
DXY - The US dollar index is showing signs of slowing downEconomists said the Fed had completed its monetary tightening cycle, reducing the chances of the U.S. going into recession.
In the Wall Street Journal's latest quarterly survey, economists and business leaders lowered the odds of the U.S. going into recession next year from an average of 54% in July to a more optimistic 48%. This is the first time since the middle of last year that the probability has fallen below 50%.
He mainly attributes his optimism to three factors. Inflation continues to decline, the Federal Reserve has finished raising interest rates, the job market is strong, and economic growth is well above expectations. The survey was conducted October 6-11 among 65 economists. Doug Porter and Scott Anderson, economists at BMO, say the odds of the U.S. going into recession continue to decline as the banking sector crisis eases and the labor market and incomes recover strongly. Rising real income supported consumption.
DXY HOW I LOOK AT THIS CHART The last two analyzes that I will mark below showed that I was bearish below the weekly level. After that, a bullish divergence appeared and the shorts were manipulated.
Therefore, this zone was retested and if it is only 1 hour of the saint, we got a strong reaction. Zones that I watch, below the weekly level 106 - bearish, the last price for me.
Above closing if possible daily 106.7 for me the door is open for 108 and the deviation is not yet confirmed.
Below, see my predictions since the beginning of this manipulation
Any move for DXY todayGold prices fell on Monday, but reversed after rising safe-haven demand led to a series of strong gains in the yellow metal as attention remained focused on the potential impact of the crisis. War between Israel and Hamas.
The yellow metal saw some profit-taking after rising more than 5% last week as the outbreak of the Israel-Hamas war sent investors to safe havens.
Markets are now focused on whether the conflict between Israel and Hamas will spread to the Middle East as Israel prepares for a ground offensive in the Gaza Strip.
Prospects of rising US interest rates limit gold's appeal
Better-than-expected U.S. inflation data released last week signaled continued tightening by the Federal Reserve, and interest rates are likely to remain high for an extended period of time.
This view has weighed heavily on gold prices over the past year, and with US interest rates remaining high, any significant price gains for the yellow metal are likely to be limited.
Gold has seen some significant gains due to demand as a safe-haven asset, but primarily the dollar has remained the safe-haven asset of choice. Capital inflows into the dollar pushed it near a 10-month high last week.
Rising interest rates are bad for gold because they increase the opportunity cost of investing in the yellow metal. This thinking has capped the yellow metal's strong rally, even as deteriorating global economic conditions have increased demand for safe-haven assets.
How is the USD when the Middle East is"on the edge of the abyss"At least 30 US citizens died in the Israeli-Palestinian conflict
According to CNN, on October 15 local time, a US State Department official said at least 30 US citizens were killed in the conflict between Palestinians and Israel. The official said the United States is "cooperating with the Israeli government on all aspects of the hostage crisis, including sharing intelligence and deploying experts from across the U.S. government to advise Israeli government regarding hostage rescue efforts."
The US expressed concern about the risk of war between Israel and Hamas spreading to the region and the possibility of Iran directly participating in the conflict.
Iran, a power in the Middle East, has provided much support to Hamas. Iran also supports Hezbollah, an armed Muslim force in Lebanon that is threatening to open a "second front" targeting Israel.
US Defense Secretary Lloyd Austin on October 14 announced the deployment of a second aircraft carrier "to prevent hostile actions against Israel or any attempt to expand this war after the attack by Hamas." ".
The Iranian delegation to the United Nations on the same day warned that the Hamas-Israel conflict would escalate beyond control and "cause far-reaching consequences".
DXY Index New Week MovePair : XAUUSD ( Gold / U.S Dollar )
Description :
Impulsive Waves " 12345 " and Corrective Wave " A " Completed. We have Break of Structure with the Retracement , It can Reject from Fibonacci Level - 50.00 / 61.80%. Bearish Channel in Short Time Frame it will Complete its Retracement and will Complete its " B " Corrective Wave
Entry Precautions :
Because of Israel / Palestine War Market can make false move so be careful
UPDATE EURUSD LONG/SHORT DAILYIn the previous analysis of this currency pair, we expected the price to rise when the downward trend line was broken
that according to the conditions of the dollar index, this currency pair failed to fill the moving step to rise, so we updated the drawn downward trend line
And we specified two scenarios for the price movement, according to the movement of the dollar index, which we examined in its own analysis, we plan our transactions in each of the possible scenarios that occur in the direction of the price movement.
Thank you for following me.
I would be happy to tell you your opinion about this currency.
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⚠️DXY will Go Down again⏰(15-Min)⏰⚠️DXY Index is running near the Uptrend line and 🟡 Price Reversal Zone(PRZ) 🟡.
According to the theory of Elliott waves , the DXY index has succeeded in completing its 5 ascending waves near the 🟡 Price Reversal Zone(PRZ) 🟡.
💡Also, we can see Regular Divergence(RD-) between two consecutive peaks.
🔔I expect the DXY Index to trend lower in the coming hours and at least go down to the 🟢 Support zone($106.330_$106.160) 🟢.
U.S.Dollar Currency Index ( DXYUSD ) Analyze, 15-minute time frame⏰.
Do not forget to put Stop loss for your positions (For every position you want to open).
Please follow your strategy; this is just my Idea, and I will be glad to see your ideas in this post.
Please do not forget the ✅' like '✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
$Dollar bears?!TVC:DXY Dollar bears may come into control swiftly if we break down within this channel, reaching the red support zones. However, while we are still within the amber zone, patience.
Whilst analysing the dollar, think of other currency pairs such as £.
Ignoring the outside noise and concentrating on price action is key at this moment in time.
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💸DXY Index💸 will Go Up by Falling Wedge Pattern⏰(1-Hour)⏰✅The DXY Index has completed a Falling Wedge Pattern in the 🟢Heavy Support zone($105.80_$104.530)🟢 and 🟡 Price Reversal Zone(PRZ) 🟡.
💡Also, we can see Regular Divergence(RD+) between two consecutive valleys .
🔔I expect the DXY Index will go UP after breaking the upper line of the Falling Wedge Pattern to the 🔴 Resistance zone 🔴.
U.S.Dollar Currency Index ( DXYUSD ) Analyze, 1-hour time frame⏰.
Do not forget to put Stop loss for your positions (For every position you want to open).
Please follow your strategy; this is just my Idea, and I will be glad to see your ideas in this post.
Please do not forget the ✅' like '✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
The dollar suddenly increased after favorable news for America'sThe Fed has raised interest rates 11 times since March 2022, but inflation remains well above target and U.S. central bank officials are taking more aggressive action than in the past. This is thought to be due to a lack of monetary policy adjustment.
When Federal Reserve officials say their long-term inflation target is 2%, they are referring to the percentage growth in the Core Personal Consumption Expenditures Price Index (Core PCE) compared to the same period last year.
The more popular and often cited inflation figure is the year-over-year growth rate of the Consumer Price Index (CPI).
In fact, from May 2023 to the present, the six-month Treasury yield has been consistently above 5.3% and even above 5.5%. Additionally, approximately $1 trillion has been withdrawn from the reverse repo facility since May.
In other words, the U.S. federal government is pumping trillions of dollars previously siphoned out of the financial system by the Fed back into the economy through bonds with attractive yields.
The higher the yield, the more money flows into the financial system. This is one of the strange phenomena in the fight against inflation. The clearest evidence is that M2 money supply fell to a two-year low in April 2023, then stopped declining and even increased slightly in the following four months. Without a reduction in the money supply, it will be difficult to reduce inflation. The Fed tried to tighten monetary policy by raising interest rates and withdrawing money, while the U.S. government increased debt and injected more money into the economy to cover budget deficits. No matter how strong your hands are, you cannot clap loudly. No matter how hard the Fed tries, it will be difficult to control inflation if monetary policy runs counter to monetary policy.
The dollar fell before the US released inflation dataThe US dollar fell in early European trading on Thursday, hovering near a two-week low ahead of the release of key US inflation data.
At 03:15 ET (07:15 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% lower at 105.377, just above its lowest level in day, the weakest level in two weeks.