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...
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
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.
EURUSD - D1 Timeframe
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.
GBPUSD - D1 Timeframe
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.
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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...
What causes the yen to fall, and how does it behave against the USD, EUR, and AUD
Intraday and swing scenarios based on price action and volume profile.
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...
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.