Hedge funds Sell USD ahead of the FOMC meeting

Hedge funds Sell USD ahead of the FOMC meeting

2023-07-25 • Updated

Recently, gold prices settled by -0.41% at 59309 as the dollar and bond yields rose. However, hopes for a pause in US rate hikes limited the decline after the July meeting of the Federal Reserve. The unexpected drop in new claims for unemployment benefits in the US also contributed to the market sentiment.

Physical gold demand in India stalled due to monsoon rains and higher domestic prices, while in China, bullion was sold at high premiums. Indian dealers offered discounts of up to $6 an ounce over official domestic prices, and in China, gold changed hands at premiums of $9 to $17 an ounce. Swiss gold exports fell 23% in June due to lower shipments to China and India. Let’s take a look at the technical analysis.

US Dollar - D1 Timeframe

UsDollarDaily-2507.png

The US Dollar ended the last week with a bullish run all through the week, in a move that seems to be set to continue even further. We see the price sharply pull away from the demand zone on the charts as it heads toward the 50 and 100-period moving averages. The implication is that we are bound to see the bullish move continue until it finds a credible resistance from the moving averages and resistance trendline.

Analyst’s Expectations: 

Direction: Bullish

Target: 102.381

Invalidation: 101.174

EURUSD - D1 Timeframe

 EURUSDDaily-2507.png

The price action on EURUSD has recently broken out of the wedge and seems to be heading toward the trendline and moving averages in search of support. It is important to note the bullish array of the moving averages to indicate what is most likely to occur once the price reaches the support area. In the meantime, we remain bearish.

Analyst’s Expectations: 

Direction: Bearish

Target: 1.09637

Invalidation: 1.10901

GBPUSD - D1 Timeframe

 GBPUSDDaily-2507.png

GBPUSD made a huge dump from the pivot supply zone on the daily timeframe. However, the current state of the price action suggests that the price may be heading for the support trendline with a confluence from the 50-period moving average. The trend remains bullish, though, so it would be smart to exercise a sizable degree of risk management on this idea.

Analyst’s Expectations: 

Direction: Bearish

Target: 1.27373

Invalidation: 1.28905

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

TRY TRADING NOW

You can access more of such trade ideas and prompt market updates on the telegram channel.

Similar

AUD: Trade Ideas
AUD: Trade Ideas

Last Tuesday, the Australian dollar experienced its steepest drop of the year, falling by 1.18%, following higher-than-expected US inflation figures, which boosted the US dollar. However, the Aussie has since rebounded and is now trading at a two-week high against the US dollar. Investors are...

NZD: The Week Ahead
NZD: The Week Ahead

Commerzbank's analysis suggests a brighter outlook for the New Zealand Dollar (NZD) in the coming months despite recent downward pressure. Factors like broader U.S. Dollar strength and domestic issues have kept the NZD below last year's highs. However, robust labor markets in both New Zealand and Australia and an expected...

Latest news

WTI and Brent React To a Key Pivot
WTI and Brent React To a Key Pivot

Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...

XAUUSD: Will Gold Continue to Rally?
XAUUSD: Will Gold Continue to Rally?

Last week I gave a trade idea on XAUUSD with a target around the $2,020 price line. At the time of writing, XAUUSD already exceeded the target and I’m sure that would leave a lot of people wondering what to expect next. Below, I have presented my view of how I expect the price action to turn out in the meantime.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera