Bitcoin~$15k or even lower soon!Hello Traders,
Happy New Year, I hope we can see some positive movements in 2023, but the market disagrees.
As you know already, FOMC minutes was just released today, and the result wasn't good, and Bitcoin rejected right at the resistance again. I expect to see new lows in the upcoming days/weeks. The fed still insists on the rate hikes policy in 2023, and we won't see cut rates this year.
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Trade safe.
Fomcnews
FOMC Economic Projections Effect on GoldOANDA:XAUUSD
**Repost from Dec 14th 2022 since the original post disappeared**
Hello all TradingView speculators,
In my opinion, I think there was an overreaction from the market's participation on the CPI numbers that was announced to be lower than expected. In addition to this, some technical indicators are showing us some signals to be careful on the buy side from bearish divergence signal between the price and RSI on 4H timeframe. This indication does not mean that the trend will reverse immediately but it indicates that the current trend has chances of stopping and turn into either sideway or downtrend in short term.
Based on the current price level, Risk to Reward Ratio seems to be in favor of the bears. However, I would wait to see the price action in 1H timeframe tries to test 1815 first and if it fails then I believe that follow sell position after this price action fails to go above 1815 and if price makes a lower low below 1804 can be a worthy trade
eurusd , shortAfter hitting the ceiling of the descending channel , the euro-dollar entered correction and will move towards the ceiling of the channel after correction again.
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6 Reasons why the gold price will drop with interest rate hikes The FOMC announced another 50bps (0.50%) Interest Rate increase to 4.50% which has lead to short term downside for gold as an initial reaction.
The question for many remains.
Why does gold drop when interest rates rise?
There are a number of reasons, but here are the top 5…
#1: Investors look elsewhere
Higher interest rates can make other investments, such as fixed investment assets and bonds, more attractive to investors. Gold investors will then sell their gold holdings and take advantage of higher interest rate yielding assets. This can lead to investors moving their money out of gold, which can lead to a drop in price.
#2: Stronger U.S Dollar
A higher U.S dollar can lead to gold being more expensive for investors who use other currencies to buy it. This can lead to a drop in demand for gold, which brings the price lower.
#3: Higher borrowing costs
When interest rates rise, this increases the costs of borrowing for business and consumers. They now need to pay more to borrow money to fund their operations. This can hamper the economic activity and drop the demand for buying stocks, precious metals and other investments.
#4: Higher yields on gold-mining companies bonds
Fixed investment gold bonds may seem more attractive than holding and investing in gold itself. This leads to a drop in gold mining stocks which essentially helps with the drop in gold.
#5: More supply less demand
With the factors I mentioned above, with investors leaving gold this increases the supply of the metal and decreases the demand. This leads to a drop in the gold price.
#6: Uncertainty floods the markets
When interest rates go up, this leads to uncertainty in financial markets (where gold is no exception). Investors feel the uncertainty and become worried for the economy. This can lead to a decrease in demand for gold and a drop in its price.
These are all speculations in theory with why the gold price may drop with an increase in interest rates. We notice that the markets don’t always play according…
Since the May 2022 Gold has moved in a sideways consolidation pattern. And this means, we can see the price continue in the range. Until we actually see a break up or down, the analysis in the medium term is sideways. We’ll be watching this carefully.
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Timon
MATI Trader
Higher interest rates can also lead to higher yields on gold-mining companies' bonds, which can make these bonds more attractive to investors. This can lead to a decrease in demand for gold-mining stocks and a drop in the price of gold.
Higher interest rates can also increase the opportunity cost of holding gold, as the metal does not generate any income or interest. This can make investors less likely to hold onto gold as a long-term investment.
Gold is often seen as a hedge against inflation, and higher interest rates can signal that the central bank is trying to keep inflation in check. This can reduce the perceived need for gold as a hedge and lead to a drop in its price.
5 Reasons why Interest Rate hikes causes markets to fall - FOMC We had the CPI come our better than expected (7.1%) versus 7.3% expected.
This means finally inflation is decelerating at an accelerating rate which is good for the markets.
However, today with the FOMC they are expecting a 50 bps hike or 0.5% rise.
Just a reminder in simple terms
Interest rates is the amount of money (expressed as a %) that a lender charges a borrower for the use of their money.
The interest rate is the percentage of the money you borrowed that you have to pay back as a fee.
Now there are a few reasons why interest rate hikes can cause global markets to fall including.
1. Better places to invest in
Investors take their money out of stocks and financial assets and into banks where the potential return is higher.
2. Strong economy
When interest rates rise it tells is the economy is improving and getting stronger. This can lead to higher inflation expectations.
3. Expensive for businesses
When interest rates rise, it makes the borrowing more expensive for businesses. This is based on the borrowing of buildings, assets and equipment. They now need to pay a higher rate to finance their debt.
4. Better for bonds and fixed investments
Again, investors want a better ROI. They will take money out of the financial markets and more into bonds and other fixed-income investments.
5. Higher US Dollar
Higher Interest rates often lead to a stronger dollar. U.S Exports become less competitive which hurts many multi-national companies. and less attractive for U.S stocks.
Hope that helps. Save this so you have an idea on how Interest Rates move the markets. Follow for more daily tips. Thanks for the support.
Trade well, live free.
Timon
MATI Trader
NQ Power Range Report with FIB Ext - 12/14/2022 SessionCME_MINI:NQH2023
- PR High: 11973.75
- PR Low: 11951.75
- NZ Spread: 49.0
Evening Stats (As of 12:05 AM)
- Weekend Gap: N/A
- 8/19 Session Gap: -0.04% (open > 13237)
- Session Open ATR: 293.97
- Volume: 18K
- Open Int: 195K
- Trend Grade: Bear
- From ATH: -28.6% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 12391
- Mid: 11820
- Short: 10678
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
What can we expect for Bitcoin this FOMC meeting?As the FOMC meeting is coming up in just a few hours Bitcoin is relatively not moving that much. What can we expect Bitcoin to do? As we are closing down the triangle I am expecting this to break during the meeting as volume will start to kick in. We have 2 clear scenarios
• We will break up and are going to 21k
• We will break down and are going to 19,750k
Stay away from trading leverage as we can expect an fake-out up or down!!
Trade safe
What can we expect tomorrow with the FOMC meeting for Bitcoin?Tomorrow will be a big day again for the markets! We are expecting a 75 bps. In this case neutral means that there is lots of volatility. But there is a small chance that the FED will choose for a 50 bps rate hike, because a 75 bps rate hike will be too hard to handle for the economy. In that case we are going to see a big movement to the upside.
Trade safe and don't get trapped in the volatility!
BTCUSDT: SHOULD YOU ENTER NOW OR WAITHello !!
Welcome to the quick update of BTCUSDT. In the last few days, we saw BTC trading in the range of 20000 to 22000.
After hitting the 22000 mark, it took a dump and the major dump was seen on the 19th night when BTC dumped all the way from 19700 to 18200.
As of now, we can see BTC taking the 18200 support and is currently trading around 19000. We can long some BTC on SPOT for the long term and keep on accumulating at every dip. We can see a green candle in 15 minutes timeframe and it is holding the trend line as of now. We can expect a pump until 19600 followed by 20100 in the short term. The FOMC meeting today will reveal more about the price action. Till then stay tuned and wait for a green momentum.
Till then stay tuned and trade with caution with strict STOPLOSSES !!
This is not financial advice, please do your own research before investing and we are not responsible for any of your losses or profits.
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GOLD Analysis FOMC Updat!!Hello traders, this is a complete multiple timeframe analysis of this pair. We see could find significant trading opportunities as per analysis upon price action confirmation we may take this trade. Smash the like button if you find value in this analysis and drop a comment if you have any questions or let me know which pair to cover in my next analysis.
USDJPY It will keep growing! LONGWelcome back! Let me know your thoughts in the comments!
**USDJPY - Listen to video!
We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met.
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Daily analysis and trade setups on NASDAQ 20220727Very Happy Volatility Day & Very Happy FOMC Day
We are likely to see 700 to 800 points move today
Scenario 1 : FOMC News Bearish Reaction
- Initial bounce to 12430 or even 12600
- After initial bounce, break of 12170 will lead to 11900
- Selling begets selling could lead to 11500
Scenario 2 : FOMC News Bullish Reaction
- Initial drop to 12060 extending to 11930 or even 11870
- After initial drop, rip to the upside all the way to 13000
- Buying frenzy can push it all the way to 13400 before retreating to ~13000
Scenario 3 : I am proven one of the greatest FURU
- I am a FURU
- I am a FURU
- I am a FURU
Chart with Blue B, C, D, E levels >>>
Chart with Green Goblins >>>
Chart with confluence levels >>>
BTC - What about after the Dump?I've been doing a lot of number crunching, specifically around Fibonacci numbers and Harmonics. There is a possibility we get a Bullish crab at 16.3k with a retracement to 18,700-19,400. I will be Shorting this area after TP'ing Short at 16.3k.
The next target to close FOMC pump Short would be between 15.5k-15k. Not sure which. But i'm certain it's one of these two.
The less likely scenario if these are broken is 13k . But that is less likely. I think a lot of people are expecting really low (I see people shouting 10k in chat) and they aren't expecting a local bottom at 15k.
As is always we get some kind of Relief Rally after FOMC event has happened. I assume this will be the push towards the mid 19's. I am ready to SHORT this area - it will be fairly simple! All I have to do is wait until volume dies after FOMC pump. Take Profit target 15.5k.
The final trade in this next 3 weeks will be LONG 15.5k and 15k, with a take Profit target of around 22k.
The reason why it will dump again after FOMC rally... is it because it always does! It happened last time.. it dumped 32k-> 20k then rallied to 22.5k then dropped to 17.6k.
Good luck!
NQ Power Range Report with FIB Ext - 5/4/2022 SessionCME_MINI:NQM2022
- PR High: 13134.50
- PR Low: 13106.00
- NZ Spread: 63.50
Evening Stats (As of 12:05 AM)
- Gap: = N/A
- Session Open ATR: 397
- Volume: 16k
- Open Int: 224k
- Trend Grade: Neutral
- From ATH: -21.75% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 14675
- Mid: 13500
- Short: 12390
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
NQ Power Range Report with FIB Ext - 3/16/2022 SessionCME_MINI:NQM2022
- PR High: 13452.50
- PR Low: 13428.50
Evening Stats (As of 12:05 AM)
- Gap: = N/A
- Session Open ATR: 461.10
- Volume: 19k
- Open Int: 164k
- Trend Grade: Neutral
- From ATH: -19.75% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 14675
- Mid: 13500
- Short: 12390
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
Is the US Federal Reserve hiking 25 basis points tomorrow?The US Federal Reserve kicked off its Federal Open Market Committee (FOMC) meeting on Tuesday, with the markets widely anticipating a 25 basis-point hike in what would be the first interest rate increase since 2018.
Fed Chair Jerome Powell had earlier raised the prospect of a 25bp hike, telling a House financial services committee hearing two weeks ago that he is "inclined to propose and support” the increase as inflation has sat above 2% and as the United States’ labor market continued to recover.
High inflation underscores need for tightening
With the US consumer inflation soaring to a 40-year high of 7.9% in February, a rate hike this week is highly anticipated, although uncertainty lies in how much the Fed will have to tighten to tame inflation. Markets are also pricing in up to six or seven hikes this year, one for each of the upcoming FOMC meetings.
Higher inflation expectations among US consumers, according to surveys by the New York Fed and Cleveland Fed, also ramp up the likelihood of a more hawkish Fed.
50bp hike also on the table
Although many market watchers anticipate a 25bp hike when the Fed caps off its meeting on Thursday, some economists say a 50bp is also likely. Last month, St. Louis Fed President James Bullard called for a full percentage-point hike by July 1.
ING Bank’s Chief International Economist James Knightley in a note last week said it wouldn’t be surprising “to see maybe two FOMC members vote for 50bp.”
Knightley and other economists from the Dutch bank most recently said markets are back to pricing 160bp hikes in six meetings in total for 2022, although the Fed may have five rate hikes planned for the year.
Russia-Ukraine war places Fed in a precarious spot
However, the worsening conflict between Russia and Ukraine, which has reached its third week, puts the Fed on alert due to expectations that the war could worsen inflation and result in a potential global economic recession that could derail the United States’ recovery momentum.
Still, the Fed appeared to be undeterred by the crisis, with Powell saying in a recent speech to Congress that the near-term effects of the war and Western sanctions on Russia remain highly uncertain.
"Making appropriate monetary policy in this environment requires a recognition that the economy evolves in unexpected ways. We will need to be nimble in responding to incoming data and the evolving outlook,” Powell said.
Squeezing household income
A rate hike in the US — the first since the COVID-19 pandemic emerged — could further squeeze household income at a time when gas prices hover around record highs. Gasoline prices in the US surged to an all-time high of $4.33 on Friday, before retreating over the weekend, according to data from the American Automobile Association.
Higher interest rates will raise borrowing costs in banks, lifting variable rates on credit card debt and affecting interests on auto loans and mortgages. This could further weigh on consumer’s spending habits.
SPXU INVERSE ETF TRADING IDEA FOR FOMC MEETING 3/16/22This is my trading strategy for March 16th, 2022 on the next FOMC meeting. Using inverse 3 x etf is like doing options without options. They track opposite of whatever it is they track. In this case the SPXU does the exact opposite of the SPY S&P 500 ETF .. The spy tracks the S&P 500 markets.
So I'm setting up a position on morning opening day of March 16th, Wednesday with $6,660 position anticipating a 5-8% return x 3x since the SPXU is a 3 x inverse..
Be very careful using 3x inverse or any inverse etf . YOU HAVE TO WATCH THEM LIKE A HAWK. They are not meant for long term or swing trade. They are for 1 day intra day only and can be very dangerous if you don't use them properly. They can also make you quick FAST money , BUT YOU CAN ALSO LOOSE ALL YOUR MONEY IN 1 DAY, if you DON'T KNOW what you are doing..
This is what I am doing. I am not giving trading advice. I simply share some of my trading ideas here...
PS.Disclaimer
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA , an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this TA,( Technical Analysis ) site are for informational purposes only and do not constitute financial, investment, trading, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using or reading this technical analysis you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this analysis, post or newsletter.