DXY Will Move Higher! Long!
Please, check our technical outlook for DXY.
Time Frame: 12h
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is testing a major horizontal structure 107.470.
Taking into consideration the structure & trend analysis, I believe that the market will reach 109.002 level soon.
P.S
The term oversold refers to a condition where an asset has traded lower in price and has the potential for a price bounce.
Overbought refers to market scenarios where the instrument is traded considerably higher than its fair value. Overvaluation is caused by market sentiments when there is positive news.
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J-DXY
USDCAD - Where will the Canadian dollar go?!The USDCAD pair is above the EMA200 and EMA50 on the 4-hour timeframe and is moving in a range. As long as the pair is in this range, the best thing to do is to sell at the top and buy at the bottom. A break of this range to the top or bottom will allow us to continue its rise and fall.
The Bank of Canada has announced its decision to lower the policy interest rate to 3% after six consecutive reductions. Additionally, it confirmed the end of quantitative tightening (QT) and the gradual resumption of asset purchases starting in March. These measures reflect the central bank’s effort to stabilize the economy and support sustainable growth.
The Bank of Canada emphasized three key points:
• Inflation has approached the 2% target. After a period of high volatility, inflation expectations have moderated, and price pressures—except in the housing sector—have eased.
• Lower interest rates have increased household spending power and gradually boosted economic activity, particularly in the housing sector and durable goods purchases such as automobiles.
• New U.S. trade policies remain a significant risk to Canada’s economy. Any escalation in trade tensions could negatively impact economic growth.
One of the first sectors to benefit from the rate cut is the housing market.Lower borrowing costs are expected to attract new buyers; however, the central bank anticipates a more balanced increase in housing prices over time. The recent slowdown in construction activity and declining rental prices indicate that investment appeal in this sector has somewhat diminished.
For investors and entrepreneurs, the lower interest rates present an opportunity to secure cheaper financing and expand their businesses. Sectors such as startups, technology, and export-driven manufacturing are expected to gain the most from this policy.
With inflation stabilizing around 2% and the economy recovering, the Bank of Canada sees no immediate need for further rate cuts. However, potential economic disruptions from U.S. trade policies could alter this outlook.
Reports suggest that if U.S. President Donald Trump proceeds with a proposed 25% tariff on Canadian imports, the Canadian government plans to implement financial aid measures similar to those used during the COVID-19 pandemic. However, these programs require parliamentary approval, and given that the Liberal government lacks a parliamentary majority, there is no guarantee they will pass.
All opposition parties have expressed their intent to oust the current government, meaning any economic stimulus package would require support from the New Democratic Party (NDP). The NDP has backed the Liberal government over the past three years. The Canadian Parliament is currently adjourned until March 24, allowing the Liberal Party to select a new leader to replace Justin Trudeau, with Mark Carney as a likely successor. However, an early leadership decision may occur before the scheduled date.
Tiff Macklem, Governor of the Bank of Canada, stated that household debt is not a sustainable driver of consumption growth. He expressed greater concern about declining business investment due to tariff threats, arguing that such policies could have a more significant impact on the Canadian dollar than interest rate differentials.
He also reaffirmed that the Bank of Canada believes inflation has been successfully contained. The central bank aims to ensure that any CPI increases resulting from tariffs remain temporary and that the consequences of trade policies are managed to minimize sudden economic disruptions.
Copper - Markets are waiting for new moves to start?!Copper is above EMA200 and EMA50 on the 4-hour timeframe and is moving in its descending channel. An upward correction of copper will provide us with a good risk-reward selling position. If the downtrend continues, we can buy copper in the next demand zone.
The Monthly Metals Index (MMI) for copper remained largely range-bound, experiencing a slight decline of 0.65% from December to January. Meanwhile, copper prices continue to react to the new U.S. administration and potential shifts in trade policies.
Ahead of President Trump’s inauguration, copper prices on the Comex exchange began breaking out of their previous range. By mid-January, copper prices had reached their highest levels since early November. This movement was likely driven by traders anticipating the impact of potential tariffs, some of which could affect the copper market. In contrast, prices on the London Metal Exchange (LME) saw only modest gains, creating a temporary price divergence between the two exchanges.
Typically, Comex and LME copper prices move in tandem, making any significant deviations between them noteworthy. Since 2019, the two markets have shown a correlation of 99.76%, with Comex prices averaging a $19 per ton premium over LME prices. However, by January 14, this premium had widened to $402 per ton. It remains uncertain whether this premium will persist in the coming years or revert to historical levels, as seen in previous instances.
Historically, such price divergences have been temporary. One notable example was a short squeeze on Comex in late May, which marked the end of the Q2 2024 rally in base metals. During this period, the price gap between LME and Comex surged to $688 per ton, with Comex copper prices reaching a record high of $11,257 per ton.
However, this spread quickly narrowed due to shifts in trade flows toward the U.S. market. Although Comex copper contracts attract similar market participation as LME, lower inventory levels make them less liquid. Consequently, when stockpiles decrease, Comex prices become particularly susceptible to sudden surges.
Another factor contributing to price divergence was the October port strike, which led to a significant increase in Comex prices. Before the three-day strike began, Comex copper prices had already risen sharply, pushing the spread to $292 per ton until mediators brokered a resolution.
Market volatility remains a key risk for copper prices as traders await more details on which products and countries will be affected by new trade barriers. This uncertainty could either drive further price increases or trigger sharp declines if reality fails to align with market expectations.
Some of the tariffs proposed by President Trump are likely to serve as negotiation tactics, meaning they may not be fully implemented or could be abandoned if alternative trade agreements are reached. Meanwhile, reports suggest that the Trump administration is considering a phased approach to tariff implementation, which may help mitigate market reactions.
A closer look at Trump’s latest stance on China indicates a willingness to de-escalate tensions and increase engagement. However, his previous trade policies were highly aggressive, often involving heavy tariffs on Chinese imports.
GBP/USD Wedge Breakout (30.1.2025)The GBP/USD pair on the M30 timeframe presents a Potential Buying Opportunity due to a recent Formation of a Wedge Breakout Pattern. This suggests a shift in momentum towards the upside and a higher likelihood of further advances in the coming hours.
Possible Long Trade:
Entry: Consider Entering A Long Position around Trendline Of The Pattern.
Target Levels:
1st Resistance – 1.2519
2nd Resistance – 1.2571
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30.01.25 Morning ForecastNothing on main watch for me today! A lot of pairs need some development in forming their structures. It's in these times where we need to be able to take a step back, understand it is not a time to be aggressive and stay patient for when entries next shape up.
We have some USD and EUR news today to be aware of, but nothing major.
Catch you guys tomorrow!
GOLD GAVE US CHOP...Now will it Move?We got nothing but chop pending news yesterday. Now that new is out the way...we are more likely to get a solid move. Just waiting for the killzone to make a decision on a direction. We need a nice pull back for a solid pull run so I will wait for it to pull outside of value.
GOLD → Consolidation ahead of Fed rate meetingFX:XAUUSD is recovering ahead of Fed rates and Powell's speech. The price is consolidating as traders are not ready for premature action. What could happen?
Gold is holding near $2,770 in Asian trading in anticipation of Wednesday's Fed decision. Investors are cautious as the regulator may pause rate cuts and give hints on future policy. Markets expect two 25bp cuts this year, but Powell's rhetoric will determine the way forward.
Factors supporting gold: dollar correction, risk stabilization and holiday season in Asia. However, Trump's trade policy may increase inflation, forcing the Fed to keep high rates longer, which is negative for gold.
But! Further movement depends solely on Powell's rhetoric.
Resistance levels: 2765, 2771
Support levels: 2759, 2745
Technically, after breaking the bullish structure and updating the lows, the price is recovering in search of resistance and liquidity to continue the probable decline. But it depends on economic data. Possible false break of 2771 resistance before further decline.
Regards R. Linda!
**DXY Approaching Key Resistance – Potential Sell Setup**This DXY 1-hour chart suggests a potential sell opportunity around the 108.400 resistance zone. The price is approaching the marked "Possible to sell zone," and the analysis indicates waiting for bearish confirmation before entering a short position.
Key Observations:
- **Resistance Zone:** 108.400 area acts as a key resistance, previously causing reversals.
- **Bearish Confirmation:** Suggested before entering a sell position.
- **Downside Targets:**
- **First Target:** 107.749
- **Second Target:** 107.444
- **Final Target:** 106.951
If price rejects this resistance with bearish price action, it could confirm a short setup. Conversely, a breakout above 108.400 may invalidate the bearish outlook.
XAUUSD - Gold awaits the Fed meeting!Gold is above the EMA200 and EMA50 on the 4-hour timeframe and is in its ascending channel. If gold rises to the previous ATH, we can look for selling positions at the ceiling marked with the target of the bottom of the ascending channel. A correction of gold towards the demand zone will provide us with its next buying position.
Sergio Ermotti, CEO of UBS, has warned that the anticipated interest rate cuts could be delayed if Donald Trump’s second-term tariffs take effect and drive inflation higher.
Speaking with Andrew Ross Sorkin of CNBC, he stated:
“I have been saying for some time that inflation is far more persistent than we initially thought. The key question now is how tariffs will impact inflation.”
He further added:
“Tariffs are unlikely to help in reducing inflation. Therefore, I do not expect rates to drop as quickly as many anticipate.”
With Trump’s trade policies in play, the risk of rising inflation is high, and a major clash between Trump and the Federal Reserve over interest rate cuts seems inevitable. Such tensions could negatively impact the U.S. dollar.
Meanwhile, Scott Bessant, the newly appointed U.S. Treasury Secretary, is proposing a gradual global tariff plan starting at 2.5%, which will increase monthly and could reach up to 20%. This strategy aims to give businesses time to adjust to the new economic landscape. The Financial Times reported this plan, citing anonymous sources for details.
At the same time, the U.S.Senate has confirmed Scott Bessant as Treasury Secretary with a majority vote. This decision comes as Trump imposes a 25% tariff on imports from Colombia, reinforcing his aggressive trade policy stance.
The Federal Reserve’s monetary policy meeting is set to conclude today, and it is widely expected that interest rates will remain unchanged. However, analysts argue that gold markets are now focusing more on Trump’s policies rather than short-term aggressive monetary measures.
Gold prices rallied after Trump’s speech at the World Economic Forum in Davos, Switzerland. In a video address to global business leaders and policymakers, he urged central banks worldwide to cut interest rates. Trump stated:
“I am strongly calling for an immediate rate cut, and this must happen globally.”
Economists note that Trump’s remarks contradict the current economic reality, as a relatively strong economy continues to fuel persistent inflation. In recent weeks, the Federal Reserve has warned consumers about growing upside inflation risks and is seeking to shorten the current monetary easing cycle.
Ahead of this week’s policy meeting, markets expect the Fed to hold rates steady, with only one rate cut projected for this year.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, believes that the divergent views between Trump and the Federal Reserve have created uncertainty, benefiting gold as a safe-haven asset.
He further stated that the recent bullish momentum in the gold market suggests that the $2,800 price level may just be the beginning. Hansen concluded:
“As long as this uncertainty persists, I see no risk of overheating. Any downside break could trigger fresh buying interest.”
How I trade ICT ConceptsIn this video I attempt to explain how I trade using ICT Concepts. In my opinion it is a bit different to how most people use the concepts, or perhaps how even Michael uses them, but I find it very reliable in terms of determining where price is in the PD Array Matrix.
I hope it this demonstration is insightful and thank you for watching.
- R2F Trading
EURUSD - Will the dollar weakness stop?!The EURUSD currency pair is located above EMA200 and EMA50 on the 4-hour timeframe and is moving in its ascending channel. Maintaining the drawn ascending channel will lead to a continuation of the upward trend towards the channel ceiling. A correction of this currency pair towards the demand zone will provide us with its next opportunity to buy it.
Donald Trump’s remarks about imposing 25% tariffs on imports from Canada and Mexico have sparked concerns among European companies. A report by Bank of America (BofA) highlights dozens of European firms that are vulnerable to these tariffs due to their supply chain dependencies and revenue exposure.
Among these companies, the Italian automaker Stellantis stands out. According to the report, Stellantis operates 16 supply chain links in Canada and derives 47% of its total revenue from North America. Similarly, the German auto giant BMW has 18 supply chain links in Canada and generates 26% of its revenue from the United States.
In the energy sector, the UK-based utility company National Grid, with a market value of €58 billion, has a significant presence in the U.S., where 50% of its assets and 54% of its revenue originate. Although its tangible supply chain exposure in Mexico and Canada is relatively low, its extensive operations in the U.S. make it highly susceptible to the negative impacts of these tariffs.
Eurozone Bank Lending Survey – January 2025:
• Credit Standards: In Q4 2024, corporate credit standards tightened due to rising perceived risks and reduced risk tolerance.
• Mortgage Loans: Credit standards for household mortgages remained unchanged, but lending conditions for consumer credit tightened further.
• Loan Demand: Mortgage loan demand surged significantly, while corporate loan demand remained weak.
According to analysts at Standard Chartered, financial markets are currently overly focused on Donald Trump’s economic policies, potentially overlooking the risks associated with this week’s Federal Reserve meeting.
The Federal Reserve is set to announce its latest interest rate decision today following a two-day meeting. It is widely expected that the interest rate will remain within the current range of 4.25% to 4.5%. However, investors are keen to find clues regarding the timing of future rate cuts. Based on market pricing, expectations suggest a 40-basis-point rate cut by December.
A key unknown factor influencing this outlook is Donald Trump’s policies. He has recently called on the Fed to lower interest rates. Additionally, his tariff policies, which include imposing high tariffs on both allies and competitors, could further drive inflationary pressures.
As a result, the Fed may proceed cautiously with its rate-cut cycle. However, Trump’s administration has not yet implemented widespread tariffs, though he has threatened to do so.
Meanwhile, some Fed officials have recently signaled a more hawkish stance. There is also speculation that the Fed may seek to assert its independence at the beginning of Trump’s new presidential term by resisting his demands. If the Fed takes such a position, Trump may respond aggressively, which could further heighten market uncertainty.
DXY rebounding on the 1D MA50 and bottom of Channel Up.The U.S. Dollar Index (DXY) has been trading within a Channel Up since the November 05 2024 Low and the break-out above the 1D MA200 (orange trend-line). Yesterday it made a new Higher Low exactly at the bottom of the Channel and shortly after breaching the 1D MA50 (blue trend-line).
This MA recovery confirms the start of the pattern's new Bullish Leg. The previous two delivered a rise of exactly +4.50%, and as such we will be looking for a similar Target at 111.650.
Note that, even though the 1D RSI resembles the May 15 2024 Low, which despite an initial rebound, it was rejected on the Lower Highs trend-line at the time, now the long-term trend has shifted to bullish as that Lower Highs trend-line turned into Support on the December 06 2024 contact.
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Dollar Index Bullish to $111.350 (UPDATE)The Dollar has melted down to our second POI, down to $107 & so far has bounced back up. It is possible that price might still drop a little lower, but overall I expect the Dollar to turn bullish again.
We've seen Wave 4 correction complete, followed by a 'BOS' above Wave 3 high confirming the bull run will continue. Retest of supply zone completed, now time for the move up to continue📈
DXY Will Go Down! Short!
Take a look at our analysis for DXY.
Time Frame: 8h
Current Trend: Bearish
Sentiment: Overbought (based on 7-period RSI)
Forecast: Bearish
The market is approaching a significant resistance area 107.947.
Due to the fact that we see a positive bearish reaction from the underlined area, I strongly believe that sellers will manage to push the price all the way down to 106.747 level.
P.S
The term oversold refers to a condition where an asset has traded lower in price and has the potential for a price bounce.
Overbought refers to market scenarios where the instrument is traded considerably higher than its fair value. Overvaluation is caused by market sentiments when there is positive news.
Like and subscribe and comment my ideas if you enjoy them!
GOLD → Character changes, bearish premise emergesGOLD updates the low and tests trend support, testing the market and traders' nerves. The dollar is rebounding, putting pressure on the metal.
Gold is moving into a correction, gradually changing the bullish nature of the market to bearish under selling pressure due to growing demand for the dollar amid fears of a trade war over Trump's policies.
The issue of tariffs by the US is still open. Meanwhile, traders' attention is focused on data on durable goods orders and consumer confidence in the US, as well as the Fed meeting, the outcome of which will be announced on Wednesday.
Technically, after breaking the bullish structure, the price is testing the channel support. It is quite difficult to break this line from the first time and the price may form a correction to 2745, or to the imbalance zone, for example, to 2750- 2760 Fibo, before the market desire to sell resumes.
Resistance levels: 2745, 2751, 2760
Support levels: 2735 (trigger), 2717
If 2745 does not miss price and gold returns to 2735, then we should prepare for a break of trend support. In that case, an impulse to 2717 could form.
But, if 2745 does not hold the price, gold may test 2750 - 2760 before falling further.
Regards R. Linda!
EURJPY | 1 HOUR | PULLBACK THEN BULLHi everyone, Please don't forget to press the like button to receive updates of this analysis. 🚀
SIGNAL ALERT
BUY EURJPY ( FX:EURJPY ) | 162,309 , 162,221
🟢TP1: 162,500
🟢TP2: 163,100
🟢TP3: 163,950
🔴SL: 160,908
Stop Loss RR ratio - 1,32
Thanks to everyone who supported my analysis with likes 🙏🏻