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CADJPY Sell IdeaCADJPY has been in a solid uptrend for some time now however the price has been unable to past the recent high of 91.00. The RSI levels on the 30m and 1hr time frame are in very oversold regions which indicates that price could fall from here. On the 2hr time frame, there is some selling pressure appearing on the recent candle which also adds to our short bias. The target of this trade is located near the 90.100 area and our stop-loss is just above the 90.840 level.
Bitcoin and rate hikes. A short term analysis of cryptoBINANCE:BTCUSD
I'm expecting bitcoin to go down more in the coming days before the rate hikes. The market had a strong reaction on the announcement of the promised rate hikes after the crazy inflation. I think we've seen the worst of it and I'm expecting the market to recover after the hikes because there is no bad stuff happening in the future anymore. The announcement of an event has in many cases a stronger effect then the actual event happening. Obviously if the rate hikes are higher then expected we could see the markets dropping lower. Personally I'm acquiring more bitcoin in the "Buy Zone" on my chart if we don't see any new negative or positive information that could have an effect on the price of the markets. Obviously do your own research don't copy people of the internet.
EURUSD Long IdeaEURUSD has just fallen below the key phycological level of 1.131 and is currently trading around the 1.128 area. Today at 7pm GMT the chair of the Fed will speak in the FOMC minutes regarding rate hikes and inflation. A lot of investors believe there will be movement across USD pairs in the run up to the meeting. The current bias is bearish as many believe there is nothing positive that will come out of the Fed today, thus the long Euro Dollar bias. The RSI levels on the daily and 1hr time frame are at very oversold conditions (<10) which indicate that a movement to the upside is possible from these current levels. The target of this trade is located at the 1.312 level, with the stop-loss area located 0.5% below the current level at 1.1223.
SP500 vs. US intrest rateInterest rate hikes correlated with SP500 growth. Recent growth from the bottom of the March 21' COVID crash was financed by printing trillions US dollars. It allowed to mitigate unemployment rate spike. Inflation started to rise rapidly and interest rates are expected to grow. Will SP500 growth continue? Or is it overpriced by now? Maybe, Shiller P/E ratio for SP500 is now around 39 with median at 16 and maxiumum at 44 on Dec 1999. But how similar is current economics to previous decades? What to expect with unprecedented money supply and modern technologies? Is it time of Modern Monetary Theory?
Maybe I would be able to answer any of the questions if I had any formal economic education ;)
tradingeconomics.com
www.multpl.com
(XAU) Gold Short Idea Gold has been in an uptrend so far in the 2nd week of January. However, the price has been unable to re-test the $1815 level yet. In conjunction with this, the RSI levels on the larger time frames show extremely overbought levels. Today at 3 pm GMT chairman Powell of the Fed will speak regarding plans for rate hikes this year. Our in-house view is that many USD pairs will surge at the sign of higher inflation, thus pushing Gold down to the lower levels it saw in December.
EURGBP Long Idea EURGBP has been in an uptrend since late November, just about reaching the 0.86 level. Since the retest of 0.86 the price has fallen by 1%, however, it appears to have just formed support around the 0.85 area. The RSI indicator suggests that the price may rise from here as the levels are extremely oversold, (2). The target of this trade is at the recent near high of 0.86. The stop loss area for this trade is located just below the resistance level of 0.848, at 0.8474.
Beautiful gold opportunity Gold has been a choppy lately due to fundementals all the money printing by the feds going on the past week gold failed to break past 1850 but we hope to see that this coming technical side is giving a nice move to the upside make use of sl in profit once you are in profit
Oil, caution , watch your risk Oil has been one of the best performing comodities this year , we have only been going up and for the first time , we have taken out multiple swing lows. Price is also at a very dated but solid trend line and at first sight , its screaming BUY. Unfortunately , all I see is bears pushing even harder. This is a place where price has to make a decision. XLE will also be something to watch.
Global risk increases?I have been looking at this for a while. This pair is very highly correlated with the SPX but it is a way of expressing global growth and or risk. Right now, it isn't looking so good. I am bearish but I would like to take a position very close to the support if it shows me the necessary price action. The position is shorting Gold and going long the GDow index simultaneously.
My home currency!Hey traders
Its been a volatile past few days with Trump and North Korea talking trash with each other sending global exchanges into the red, and breaking the DOW's 9 day streak!
But aside from that we can still find setups in the currency markets, NZD has been in a strong uptrend since late 2015, so even with a slight drop at the start of this month, price has hit a major structure level dating back to sept 2016 and feb 2017. To add to this we've had a major rally to the upside this morning with the RBNZ keeping interest rates at 1.75% as expected. This rally has bounced off previous structure, i would not enter trade yet as I would like to see a confirmation that the trend has continued its upward movement with a new higher high and higher low.
Thanks
Plan your trade, trade your plan.
USDJPY short Opportunity Maybe?As the rally in US stocks continue I taught it would be a good idea to look at the USDJPY since it has been getting beat on in the last few months due to the strengthening of the Japanese Yen. BOJ has introduced negative rates to cause devaluation but that is not working. Going back to Technical Analysis, we can see some support levels that USDJPY is approaching. I am going to sit back and see how this trade progresses forward. It could hit resistance at 105.508 in which if it closes below we could see a a re-tracement or a major draw down for the pair. Or we could see a retest of structure (resistance) and might open on opportunity to get short. Notice that we could be reaching a minor level of overbought so we could see some selling pressure from other traders. Tell me what you think down in the comments. Look forward to hear your taughts on the pair. FX:USDJPY