AFTER BREAKING ALL RECORDSIn a historic week for precious metals, gold futures broke past records to hit new highs. Markets are now turning their attention to next week’s Federal Open Market Committee (FOMC) meeting.
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XAU is at a low price compared to last weekThe XAU price fell to its lowest in more than a week today as traders await more US economic data and comments from US Federal Reserve (FED) officials this week for further action. more clarity on the timeline for interest rate cuts.
Markets see a more than 90% chance the Fed will cut interest rates in September, down from a previous forecast of 98%.
Senior market analyst at FxPro Alex Kuptsikevich said that the simultaneous decline in the gold and US stock markets recently is not a good omen for this precious metal.
GBPUSD strategy today will drop sharplyThe dollar fell sharply on Thursday and is on track for an annual decline after two years of strong gains as expectations of an interest rate cut from the Federal Reserve next year are holding back markets.
As the year comes to a close, thin liquidity and limited volatility are predicted until the new year.
The dollar index, a measure of the US currency against six rivals, fell to a new five-month low of 100.81. The index fell 0.5% on Wednesday and is on track to fall 2.6% this year, shedding two straight years of strong gains.
According to the CME FedWatch tool, investors remain focused on the timing of a Fed rate cut, with the market pricing in an 89% chance of a cut by March 2024. Futures imply up to 158 basis points about the Fed easing next year.
Potential Intervention by Bank of Japan - Pause Yen Trading? As you are aware, the USD/JPY currency pair has been experiencing considerable volatility lately, with the exchange rate approaching the critical level of 155. While we strive to maintain a balanced and unbiased approach, it is essential to acknowledge the potential consequences if the USD/JPY falls beyond this threshold.
In such a scenario, it is highly likely that the Bank of Japan (BoJ) may intervene to stabilize the yen's value against the US dollar. Historically, the BoJ has demonstrated a proactive approach to prevent excessive currency fluctuations, especially when they may adversely affect Japan's economy.
Considering this possibility, we strongly recommend that traders take a moment to reassess their current yen trading positions. Pausing yen trading during this uncertain period may prove to be a prudent decision, allowing us to gauge the BoJ's response and the subsequent market sentiment.
We understand that as traders, you possess the expertise to make informed decisions based on your individual strategies and risk appetite. However, we believe it is our responsibility to highlight potential market events that could have a significant impact on your trading activities.
To stay updated on the latest developments regarding the USD/JPY exchange rate and the Bank of Japan's potential intervention, we encourage you to regularly monitor reliable news sources and leverage comprehensive research tools.
In conclusion, we urge you to exercise caution and consider pausing yen trading until further clarity emerges regarding the Bank of Japan's intervention. By adopting a prudent approach, we can safeguard our positions and navigate the market with greater confidence.
EURUSD TECHNICAL ANALYSIS VOL 2EURUSD TECHNICAL ANALYSIS VOL 2...
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GBPNZD Price double bottomed in our bullish zone. This is a full breakdown of my perception of price action on higher time frames! I take my entries using smaller time frame confirmation and you should, too. If you have any questions about this trade or my strategies feel free to ask them in the comment section below!
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US Dollar Currency Index / W / Weekly Forex Analysis / 5.19.2019Hello Traders, welcome to the Weekly Forex technical analysis. Today is May 19th, 2019 and we will be taking a look at the U.S. Dollar Currency Index on the weekly chart just to get into the calendar, and have an outlook into the upcoming week. Looking at the Dollar Index here on a weekly time frame, we can see we got a minor correction and finally it moved back above the 97.465 support and resistance area, with a strong weekly close above this area. Going into this next week of 5/20/2019, we will be looking for the Dollar Index to follow through and continue to strengthen a bit more an target the 98.687 resistance area. On the over hand if we fail to move higher and turn bearish we would be looking to retrace back to the 96.493 support area.
USDCHF approaching support, potential bounce! USDCHF is approaching our firsts support at 0.9798 (horizontal swing low support, 61.8% Fibonacci extension, 38.2% Fibonacci retracement) where a strong bounce might occur above this level pushing price up to our major resistance at 1.006 (horizontal swing high resistance, 61.8% Fibonacci extension, 76.4% Fibonacci retracement).
Stochastic (55,5,3) is also approaching support and we might see a corresponding bounce in price should it bounce above this level.
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