EUR/USD Analysis: ECB Rate Cuts and Fed Policy DivergenceThe EUR/USD pair is facing significant macroeconomic factors, with the European Central Bank (ECB) contemplating additional rate cuts beyond the summer, aligning with market expectations of two more rate cuts later this year.
Conversely, market participants are debating whether the Federal Reserve (Fed) will implement one or two rate cuts this year, despite the Fed's June 12 meeting indicating just one cut, likely in December.
Today's release of the EUR Core CPI Flash Estimate y/y and CPI Flash Estimate y/y shows weaker prospects than forecasted. The Consumer Price Index (CPI), which measures the change in the price of goods and services purchased by consumers, suggests that a weaker result could drive the EUR/USD pair lower.
Additionally, the recent rise in the US Dollar is partly due to hawkish comments from Fed officials and the growing monetary policy gap between the Fed and other major central banks, contributing to the euro's decline.
In the short term, the recent ECB rate cut, compared to the Fed's decision to maintain rates, has further widened the policy gap between the two central banks, potentially leading to more weakness in the EUR/USD pair.
From a technical perspective, on the Daily timeframe, we have identified a Demand Area that has not been fully tested. We anticipate a possible bearish momentum today and will look for a potential long position if the price reaches our Area of interest.
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Forextrading
Silver Bullet Strategy on US30 Wrap - up (Traded in profit)This is a wrap-up video to finalize the earlier setup on US30. The video is linked below.
Using this method, you can validate pivots and liquidity unmitigated in the market during phase 1 of the session.
This tells you where to trade to for phase two. You use the unmitigated levels found during phase one.
Phase 3 is the silver bullet momentum area where its telling you how the market will react and move for phase 4.
This tells you if you should be taking longs or shorts which helps you to understand which levels need to be taken out on either side of the market.
In the next few days ill put together a step by step tutorial on how to achieve the use of this setup to lock in your trades with more confidence.
My Silver Bullet Strategy analysis for US30Id be happy to teach this one to you guys.
Im working on a strategy specifically designed for Forex Markets.
There is a system i am creating called my version of a Silver Bullet Strategy that allows you mark out the phases of forex markets and as a result you can better plan your entries instead of having to sit there and wait for price action to play out the way youd like to.
This method is based on time and volatility of the market, and using just a session indicator with proper settings can help you get the information you need.
I cut the video early because i cant wait for the market to play out but ive already marked up the chart.
Ill post an image below of the completed days run of US30 so we can see how my mark ups coincide with the price action analysis.
XAUUSD : Gold will break out in the near futureWorld gold prices fluctuated around 2,325 USD/ounce in the first trading hours of the Asian session.
Last week, the gold market continued to move slowly and steadily, as the yellow metal once again traded within a narrow range between 2,300 and 2,340 USD/ounce. Gold prices are expected to be volatile this week as the market receives a series of important data, including employment data and June meeting minutes.
MarketGauge's chief strategist - Michele Schneider said that world gold prices are stable amid many risks. However, inflation and the US Government's budget deficit are increasing, which firmly supports gold prices. According to this expert, gold prices tend to increase in the long term if the support level of 2,300 USD/ounce is maintained.
GOLD : Gold recovered strongly this weekGold prices are becoming unpredictable in the coming days, with many mixed views from analysts and investors, according to Kitco's gold price trend survey results next week.
Specifically, in a survey on Wall Street, 12 analysts responded, of which 33% thought gold prices would continue to increase, 17% thought gold prices would decrease and up to 50% predicted gold prices. across.
In the online survey on Main Street, 178 investors responded, with 48% predicting gold prices to increase, 28% predicting gold prices to decrease and up to 24% predicting gold prices to decrease. horizontal.
Next week, investors will continue to wait for information related to the US macroeconomy to be released, after last weekend's information showed that inflation in the US cooled down, reinforcing expectations about the Federal Reserve's announcement. The US Federal Reserve (FED) may cut operating interest rates in the second half of this year. This will positively impact the increase in gold prices.
EURUSD: Gap Spotted! 🇪🇺🇺🇸
I see a huge gap up after the market opening on EURUSD.
As always, it is a high chance that the gap will be filled.
After a strong bullish continuation, I see a sign of strength of the sellers
- a double top formation on an hourly time frame.
The price may drop soon.
Goals: 1.0728 / 1.0715
❤️Please, support my work with like, thank you!❤️
GBP/CAD ShortGBP/CAD Short
Minimum entry requirements:
• Tap into area of value.
• 1H impulse down below area of interest.
• If 3 touch 5 min continuation or 2 touch 5 min continuation with 3 touch structural approach, reduced risk entry on the break of it.
• If 3 touch 15 min continuation or 2 touch 15 min continuation with 3 touch structural approach, 5 min risk entry within it, or reduced risk entry on the break of it.
World gold is stable around 2325World gold prices fluctuated around 2,325 USD/ounce in the first trading hours of the Asian session.
Last week, the gold market continued to move slowly and steadily, as the yellow metal once again traded within a narrow range between 2,300 and 2,340 USD/ounce. Gold prices are expected to be volatile this week as the market receives a series of important data, including employment data and June meeting minutes.
Inflation and the US government's budget deficit are increasing, which firmly supports gold prices. According to this expert, gold prices tend to increase in the long term if the support level of 2,300 USD/ounce is maintained.
Gold price is still trading in a relatively narrow rangemost people are having neutral predictions on XAU
The US economy is slowing down, inflation is weak and the US Federal Reserve (Fed) is less dovish. These impacts reduce demand for gold, which could lead to a widespread sell-off.
If you are holding gold, there is no reason to sell because the price is still above 2,200 USD/ounce.
The market may have few transactions, which means the risk of large fluctuations. Geopolitical developments such as escalation in Ukraine or the Middle East could disrupt the market, Grady said.
GOLD : Gold is looking forward to today's dataMarket analysts forecast positive numbers for the May report. Expect the cost of goods and services to increase at an annual rate of 2.6%, down slightly from April's 2.7%. More importantly, core PCE is expected to fall to 2.6% (on an annual basis) in May, from 2.8% in April. If these forecasts come true, it would signal a further reduction in inflationary pressures. , bringing the economy closer to the Fed's 2% inflation target.
Fed officials, including Chairman Jerome Powell, have repeatedly emphasized the need for a sustained positive economic data trend before considering a change in monetary policy. In the recent press conference of the Federal Open Market Committee (FOMC), Mr. Powell reaffirmed this view: "We have stated that reducing the federal funds rate target range will not be appropriate until when we have greater confidence that inflation is moving towards 2% sustainably."
The market's growing confidence in the Fed's ability to change policy is reflected in the probability of cutting interest rates. CME's FedWatch tool currently shows that there is only a 35.9% chance that the Fed will keep current interest rates unchanged (from 5.25% to 5.50%) through September. This is a significant change in market sentiment, down from 37.7% just one day ago and 50.2% a month ago. This trend shows growing optimism about when the Fed will move toward normalizing interest rates.
On Thursday afternoon, 6:00 pm ET, the August gold futures contract was trading actively, soaring 28.90 USD (equivalent to 1.25%) to 2,338.70 USD/oz. Although a weaker USD provided some support, the main driver of the rally was bullish market sentiment centered on expectations for Friday's PCE report.
XAUUSD : Gold increased slightly after two days of declineUS economic data on June 27 was not very positive: the number of applications for unemployment benefits reached the highest level since November 2021, the number of durable goods orders showed a bad signal for Q2 GDP, sales Pending home sales hit a record low, and finally, the Kansas Fed's manufacturing activity stagnated for the 21st straight month.
World gold prices are slightly decreasing, fluctuating around 2,320 USD/ounce.
XAU/USD had a positive trading session, rising more than $30 to $2,329 an ounce on Thursday. World gold prices have recovered from their lowest level in 2 weeks thanks to the weakening of the USD, after a series of data showed that the US economy is slowing down, reinforcing expectations of lowering interest rates by the Fed.
The market is currently paying attention to important US inflation data today for more clues about the Fed's interest rate path.
Gold prices may fluctuate strongly in the remaining sessions of World gold fees unexpectedly elevated sharply after being "hurt" through a announcement from a US Federal Reserve (Fed) chief that brought on the USD to growth in price, getting rid of gold`s substantial strength.
The Fed maintaining hobby costs unchanged for an extended time period can be sufficient to manipulate inflation, and the Fed might also additionally even increase hobby costs similarly if inflation keeps to rise.
Currently, buyers are listening to the United States May inflation document posted later this month. They assume that when the document, the course of gold might be clearer.
GBP/CAD Short, EUR/CAD Short, EUR/AUD Short and EUR/NZD ShortGBP/CAD Short
Minimum entry requirements:
• 1H impulse down below area of value.
• If 3 touch 5 min continuation or 2 touch 5 min continuation with 3 touch structural approach, reduced risk entry on the break of it.
• If 3 touch 15 min continuation or 2 touch 15 min continuation with 3 touch structural approach, 5 min risk entry within it, or reduced risk entry on the break of it.
EUR/CAD Short
Minimum entry requirements:
• Tap into area of value.
• 1H impulse down below area of value.
• If 3 touch 15 min continuation or 2 touch 15 min continuation with 3 touch structural approach, 5 min risk entry within it, or reduced risk entry on the break of it.
EUR/AUD Short
Minimum entry requirements:
• Tap into area of value.
• 1H impulse down below area of interest.
• If 3 touch 15 min continuation or 2 touch 15 min continuation with 3 touch structural approach, 5 min risk entry within it, or reduced risk entry on the break of it.
EUR/NZD Short
Minimum entry requirements:
• Tap into area of value.
• 1H impulse down below area of interest.
• If 3 touch 15 min continuation or 2 touch 15 min continuation with 3 touch structural approach, 5 min risk entry within it, or reduced risk entry on the break of it.
XAU plummeted without stoppingXAU dropped sharply in the context of investors being cautious before the US announced important information about the economic situation. Money flows betting on the USD as US Federal Reserve (Fed) officials remain hawkish, determined to step up the fight against inflation.
After each statement by a Fed official, the USD strengthens, thereby putting downward pressure on gold prices.
The USD is also supported by efforts to cut interest rates early by many major central banks in the world, including the ECB of Europe and Canada...
Recently, the USD is not only stable at a high level but also tends to increase in price.
DXY fluctuations lead to gold falling sharplyGold dropped sharply withinside the context of traders being careful earlier than americaA introduced crucial records approximately the monetary situation. Money flows making a bet at the USD as US Federal Reserve (Fed) officers stay hawkish, decided to step up the combat towards inflation.
After every announcement with the aid of using a Fed official, the USD strengthens, thereby placing downward stress on gold prices.
The USD is likewise supported with the aid of using efforts to reduce hobby quotes early with the aid of using many essential important banks withinside the world, along with the ECB of Europe and Canada...
Recently, the USD isn't most effective strong at a excessive stage however additionally has a tendency to boom in price.
USD/JPY Short, CAD/JPY Short, AUD/CHF Short and EUR/NZD ShortUSD/JPY Short
Minimum entry requirements:
• 1H impulse down below area of value.
• If 3 touch 5 min continuation or 2 touch 5 min continuation with 3 touch structural approach, reduced risk entry on the break of it.
• If 3 touch 15 min continuation or 2 touch 15 min continuation with 3 touch structural approach, 5 min risk entry within it, or reduced risk entry on the break of it.
CAD/JPY Short
Minimum entry requirements:
• Break above area of value.
• 1H impulse down below area of value.
• If 3 touch 5 min continuation or 2 touch 5 min continuation with 3 touch structural approach, reduced risk entry on the break of it.
• If 3 touch 15 min continuation or 2 touch 15 min continuation with 3 touch structural approach, 5 min risk entry within it, or reduced risk entry on the break of it.
AUD/CHF Short
Minimum entry requirements:
• 1H impulse down below area of interest.
• If 3 touch 5 min continuation or 2 touch 5 min continuation with 3 touch structural approach, reduced risk entry on the break of it.
• If 3 touch 15 min continuation or 2 touch 15 min continuation with 3 touch structural approach, 5 min risk entry within it, or reduced risk entry on the break of it.
EUR/NZD Short
Minimum entry requirements:
• Tap into area of value.
• 1H impulse down below area of interest.
• If 3 touch 15 min continuation or 2 touch 15 min continuation with 3 touch structural approach, 5 min risk entry within it, or reduced risk entry on the break of it.
GOLD : Is gold preparing to test a breakout?The downward pressure on gold prices increased further due to rising US government bond yields. This yield has increased from 5-7 bps across all bond terms. A recent five-year US Treasury bond auction showed positive results, with bids from non-dealer investors exceeding the average.
Recent statements by Fed officials have also further influenced market sentiment. Fed Governor Lisa Cook acknowledged progress in curbing inflation and the labor market is gradually cooling, but she did not give a specific time to reduce interest rates. Meanwhile, Fed Board of Governors Member Michelle Bowman stated that now is not the time to start cutting interest rates, even suggesting the possibility of raising interest rates if inflation persists.
These developments come just ahead of the important PCE index report, scheduled for release on Friday. Economists surveyed by Dow Jones Newswires and the Wall Street Journal predicted consumer prices would fall last month. The core PCE index, which excludes food and energy costs, is expected to hit its lowest level since March 2021.
If the PCE report matches forecasts, this could suggest inflation is on track toward the Fed's goals. This could encourage the Fed to consider reducing its benchmark interest rate as early as September, despite recent hawkish statements from some Fed officials.
Fed Chairman Jerome Powell previously emphasized the need for greater confidence in economic data before making policy adjustments. The positive PCE report could mark the start of the "string of positive economic data" the Fed is looking for, potentially paving the way for an earlier rate cut than Cook and Bowman suggested. recently released.
The combination of a strong USD, rising yields and mixed signals from Fed officials continue to create a difficult environment for gold prices in the short term. However, the upcoming PCE report could significantly influence the Fed's future policy decisions, and therefore market sentiment towards gold.
XAUUSD : Is gold looking towards the target of $2,150?World gold prices moved sideways after falling more than 30 USD/ounce yesterday, fluctuating around 2,298 USD/ounce. Gold prices fell for a second straight session and hit their lowest in more than a week on Wednesday. Recent "hawkish" comments from a series of Fed officials show that the US central bank is unlikely to lower interest rates soon in the context of a recovering economy. This has supported the USD and weakened it. Yellow.
Experts say that gold will fluctuate within a narrow range because investors are cautious ahead of the release of US inflation data later this week.
If gold loses the $2,300 mark, it is likely that the $2,100-$2,150 range will be retested.
However, this is nothing to worry about. If the US economy continues to slow down, the possibility of interest rate cuts will increase, and gold will recover.
After gold retested its breakout in 1978, the precious metal rose 122% in 13 months. A similar scenario occurred in 2009 with an increase of 63% after 13 months.
If the current correction continues, it will be a gift as one will get a second and perhaps last chance to catch the gold bottom.
USD/JPY Short and AUD/CHF ShortUSD/JPY Short
Minimum entry requirements:
• Break above area of value.
• 1H impulse down below area of value.
• If 3 touch 5 min continuation or 2 touch 5 min continuation with 3 touch structural approach, reduced risk entry on the break of it.
• If 3 touch 15 min continuation or 2 touch 15 min continuation with 3 touch structural approach, 5 min risk entry within it, or reduced risk entry on the break of it.
AUD/CHF Short
Minimum entry requirements:
• 1H impulse down below area of value.
• If 3 touch 5 min continuation or 2 touch 5 min continuation with 3 touch structural approach, reduced risk entry on the break of it.
• If 3 touch 15 min continuation or 2 touch 15 min continuation with 3 touch structural approach, 5 min risk entry within it, or reduced risk entry on the break of it.
XAUUSD : Gold will increase sharply this weekWorld gold prices are trading in slight red after falling about 22 USD/ounce yesterday, currently fluctuating around 2,314 USD/ounce. The world gold market was relatively quiet at the beginning of this week due to the lack of important economic data and events. Experts say that XAU/USD fluctuates in a narrow range because investors are cautious ahead of the release of US inflation data later this week.