USDJPY refreshes 20-year highsTechnical Analysis:
Momentum is bullish, Stochs and RSI are sharply higher
Volatility is high and rising, major moving averages are biased higher
ADX and MACD support upside, Chikou span is biased higher
GMMA indicator shows major and minor trend are strongly bullish
Major Support and Resistance Levels:
Support - 128.54 (5-DMA), Resistance - 131
USD/JPY likely to extend bullish streak. Scope for test of 2002 high at 135.16.
US
US 10 year yield, US 10Y The most important chart of all the markets is this little kid here.
This chart shows us the cost of US government borrowing which also means the strength of the US dollar as cash in the investors portfolio,
As we can see in this monthly graph that the government's 10-year borrowing yield is 3% (high going back to 2018 before COVID)
What is the meaning of this?
It means that the cash held by households, investors and institutions has reached its peak, as no one is buying and not investing and inflation has remained high and the Federal Reserve will target higher rates on the federal funds,
All this leads to increased risk appetite as bond yields may regress south + inflation starts to fall = real yield will approach 0% after being in negative territory.
The bear market will be over and risky assets like cryptocurrencies may welcome decent green days if not months.
*Note, if the 10-year US yield continues to rise to 5% and 6%, then we will see the euro, stocks, Japanese yen, as well as cryptocurrencies in the best place to buy them all
The Beginning of the Golden Dragons Collapse?China is struggling, Covid 3.0 or whatever version we are on now is taking a hold of the Chinese, Shanghai in lockdowns and Shipments struggling to dock. The Chinese Economy is in a very interesting position currently, with Companies like the Chinese Titanic 'Evergrande' defaulting. We are seeing China try to expand its influence in the SCS ( South China Sea). When we take a look at the currency pair USDCNH, we are seeing the USD start to gain some real ground and this weekly charts shows the potential for this rally to continue to the 7 area, we can look for a retest of volume before opening potential long positions.
USDCAD LOSING STEAM, Reversal towards end of April?Hello Traders,
Looks like the market conditions changed since Sunday so we have shifted to a bearish
moves for usdcad.
Weekly and Daily bearish overnight and into todays economic news.
Price below all emas.
Down down it shall go.
As always, only trade what you're willing to lose.
Russel 2000 Swingtrade (extended)Q1 was a disaster. The good part here is, that it goes for all asset classes. Three important price levels for the US2000: 1900, 2300, 2450 to look at:
Russel 2000 actually looks good and shows decent fundamentals.
Bullish RSI to Price Action ratio, as well as High Volume on hitting the temporary low level 1900. This support level was hit a few times and held.
To the upside:
Local high 2450, big resistance level at 2300.
Two scenarios are possible:
1. Until 2023, creating range (1900-2450 ) retesting over and over the resistance to the upside at around 2300, maybe even cracking it and retesting 2450 and create higher high (200 MA retest in addition favors this move)
2. Going sideways, with the option of retesting lower support levels, especially pre-covid highs at 1700.
Analysts are talking about inflation and recession, the war in Ukraine as well as covid still around creating an overall skeptical atmosphere in the markets. FED, China, and Europe are struggling with the past years of QE and fiscal stimulus.
Earnings season is right now and it is a mixed picture of reports. Very hard to unravel...
Anyway: In my opinion, Russel 2000 could become a good trade getting it at 1900 Levels and making 25% gains when retesting 2450 within months?
For me a good risk to profit ratio. This is no advice here. Just sharing thoughts on a theoretical basis.
What do you think about this? Will the world economy go up, or down this year, or maybe sideways? Think Russel could make it to higher than 2450?
All the best,
GQT
USDCAD TO CLOSE OUT APRILHello Traders,
Happy Easter to those who celebrate worldwide! As we enter the final trading
days in April, we have FOMC, inflation report due this week which can highly
impact the markets.
With long term views, we see possible bullish continuation in usd and a
correction in CAD, high oil prices, rates up, they have to curb it or the Canadian
population will really get squeezed.
Views - above 1.25800/1.26000 buys....
below that, we are undecided.
OANDA:USDCAD
As always, only trade what you're willing to lose!
The trading regime.
Recession warning on S&P500?The 2-year and 10-year Treasury yields inverted for the first time since 2019 . On Thu Mar 31st , the yield curve showed a possible warning signal that a recession could be happen at anytime, but the curve needs to stay inverted for a substantial amount of time before it gives a valid signal. People get excited about the yield curve because, historically it has been a good predictor of the onset of recession.
Against a backdrop of searing inflation, Russia’s War in Ukraine and a commodity shock, the relentless flattening of the yield curve and its predictive qualities has market watchers on edge.
Goldman Sachs Group Inc. sees the odds of a U.S. recession as high as 35% in the next year, while Grant Thornton’s Diane Swonk sees the twin blow of Fed tightening and higher oil prices potentially tipping the economy into a recession. The yield curve may serve Economists more than Investors, the key factor in the yield curve inversion is that, while it can often forecast darker days ahead for the economy, it is NOT a sell signal for those who invest in stocks
Gold analysisGold analysis on the two hours, gold stands at an important juncture, there is a possibility that it will break the trend and head strongly to the downside, and it may break the trend to the upside to test the 1956 levels, and the decisive factor will be for the fundamental analysis And for the news released by the US Federal Reserve, please be careful during your trading and pay attention to the news, happy and profitable week to all.
US100 sell setup updateLet's see how price reacts to the levels, let price action be our guide for now
US100 shortUS100 is currently on a strong downtrend, and currently at the climax of an accumulation stage, we will be looking for price reaction below structure to see the way forward.
US Dollar Index Short Term Buy IdeaH4 - Bullish trend pattern followed by a flat correction in the form of a range.
No signs of trend change.
Until the bottom of the range holds my short term view remains bullish here.
A valid breakout above the top of the range would be the validation for this bullish view.
US INDEX DOLLARIf you are trying to find cryptocurrencies or currencies with good returns, you should study as many sources of information about the Dollar as possible in order to make such a responsible investment decision on your own. The main decision should be made only around $95, when the resistance is broken, I believe that the price will still cost 100%
The Dollar Index is $97 USD today, but it can go up or down and your investment could be lost as trading the index or other currencies is a high-risk asset
US DOLLAR INDEXThe dollar index has been maintaining an upward movement since January, the important levels are 90, 94, 100. As we all know who trades cryptocurrency, as long as the dollar index rises, the major cryptocurrency will retain its coreling. At the moment, the trend change after breaking through the level of 95 and fixing under it.