Gold - Monday July 17
Trading Economics:
Last weeks drop in CPI report has given signs of inflation easing in the US and led to an impulsive upside move on Gold into the 1960's as markets expectations for less interest rate hikes and earlier rate cuts added demand.
However, strong labor market data and consumer sentiment on Thursday and Friday, as well as hawkish FED comments countered that sentiment. The FED is not yet confident in letting go of their hawkish stance as the July rate hike is still expected as well as another in September still on the table.
Since last Wednesday's report, Gold has been in a tight trading range between 1963 and 1953. Market conditions are indecisive and ranging so far with little fundamental catalyst on Monday. My expectations for the day are to see slow, low volume markets.
Market Structure (Mixed, Ranging)
- Bearish MS (W,4H), Bullish MS (D,1H)
- My bias for the day is bearish, as we are still bearish on the W and 4H, while struggling to break the 1960's bearish liquidity zone.
Data in focus:
- NY Empire State Manufacturing Index (8:30)
- This data release is not one of the markets major focus, it should only have short-term impact if any.
Trade Ideas:
- ABC BEARISH rejections from 4H Supply zone (1963)
- ABC BEARISH Breakout below daily lows (1950)
- ABC BULLISH rejections from 1H Demand zone (1952)
Trading Economics:
Last weeks drop in CPI report has given signs of inflation easing in the US and led to an impulsive upside move on Gold into the 1960's as markets expectations for less interest rate hikes and earlier rate cuts added demand.
However, strong labor market data and consumer sentiment on Thursday and Friday, as well as hawkish FED comments countered that sentiment. The FED is not yet confident in letting go of their hawkish stance as the July rate hike is still expected as well as another in September still on the table.
Since last Wednesday's report, Gold has been in a tight trading range between 1963 and 1953. Market conditions are indecisive and ranging so far with little fundamental catalyst on Monday. My expectations for the day are to see slow, low volume markets.
Market Structure (Mixed, Ranging)
- Bearish MS (W,4H), Bullish MS (D,1H)
- My bias for the day is bearish, as we are still bearish on the W and 4H, while struggling to break the 1960's bearish liquidity zone.
Data in focus:
- NY Empire State Manufacturing Index (8:30)
- This data release is not one of the markets major focus, it should only have short-term impact if any.
Trade Ideas:
- ABC BEARISH rejections from 4H Supply zone (1963)
- ABC BEARISH Breakout below daily lows (1950)
- ABC BULLISH rejections from 1H Demand zone (1952)