DXY H4 We have been pretty spot on with the dollar performance, marrying up correlation fundamentally and technically. Refer to the FX technical rundown for more information. This has really helped identify handles to trade from amongst other USD related pairs, especially cable.
How high will the Federal Reserve ( FED ) raise interest rates? Here you can see how far. As you can see we still have a long way to go. We are on the verge of breaking a congestion of more than 40 years. The minimum rate hike will be up to 5 points. And that is at least, because we could revisit levels not seen since the 80s. We are in serious trouble, the...
This chart displays the ratio of S&P500 against the 20+ Year Treasury Bond ETF on the 1W time-frame. The green trend-line represents the Federal Funds Rate. The RSI on the pane below the chart, is illustrated on the 1M time-frame and based on the Channel Down it has been since May 2021, it resembles more the price action of late 2003/2004. Interestingly enough, it...
DXY H4 Not sure when to expect it, but I would hope for a retest of the broken resistance one here on DXY. Comfortably holding above resistance now, not just a pump and dump, bull continuation likely for DXY now.
Bonds are back to hugging lows, after a brief attempt at higher levels. We found immediate resistance one level above at 121'00. Even the rally to that level encountered serious resistance at every step, confirmed by red triangles on the KRI. We are back to lows again at 120'14. The Kovach OBV is very bearish so we can expect an imminent breakdown to lower...
There's an apparent "reverse head & shoulders pattern" on the Monthly 30 Year Yield Chart. The implication of the broken neckline is a reversal of the previous downtrend. Dow theory teaches us that the minimum upside target is the depth of the neckline to the peak of the "head." I see potential resistance at the downward resistance trendline and then again at the...
Quick Analysis on 10 Year Treasury Yield on a 1W Linear Chart. 1) The US 10 Year Treasury Yield has been respecting a falling channel for multiple decades going back to the 1980s. 2) It is currently headed to the top trendline of the channel with a possibility to break in the coming months. 3) The measured move of the falling channel would bring it back to...
GBPAUD H4 Annotations and order details marked for the possible sell setup, another 10 pips upside required for the RR offering of 3R. Ideally would like to see some sort of confirmation rejection too, we have 3 confluences, but still looking extremely bullish. Lets see if we start to exhaust around this price zone.
While the bond yields are going up (cost of borrowing), the sector that would greatly benefit from news like this is no one else but our good old banking sector. It would be a good risk-management in these fluctuating days to have some bank stocks in your portfolio. Here are some possible support points for BAC. We would recommend buying more each time it gets...
We didn't see our retest confirmation to enter a long position following the Interest rate decision pushed GBP higher on Thursday. We are hoping to see some retracement at market open before price once again pushes higher on this pair.
GBPJPY consolidating here at a noticeable 4 hour support/resistance zone. JPY appears strong this week and for that reason we may see a drop to the downside from the current consolidation area. By observing the daily timeframe I can also see price has broken the ascending trendline and is holding well beneath. I will be waiting to see how price action develops...
RBA interest rate decision remained unchanged (0.75%), while the market was pricing interest rate cut.. that's why AUD is bullish at the moment.. ..however global uncertainty around China might put another selling pressure on AUDUSD. Joining bears from 0.674-0.6779 price zone with 0.665 T/P provides decent R:R (at least 2.31). // Feel free to share your...
Yesterday pound has weakened, after Bank of England governor Mark Carney suggested UK interest rates could soon be cut if the economy doesn't pick up speed. Sterling hit a two-week low and the price almost reached 1.30. Does it mean the uptrend is over and the market has already priced positive Brexit deal? If somebody is still looking for longs, buying from...
The US and China signed a partial deal yesterday, putting a temporary stop to global uncertainty! Without that being the end of the trade war, at least we can now wait and see if China respects the signed terms over the next few months... Are emerging markets affected by the fresh rhetoric since China is supported, or should we just focus on monetary policy,...
The market is pricing in for the RBA to cut their interest rate from 1.00% to 0.75%. Personally, I always stay on the sidelines during interest rate risk events. The reason is how unpredictable the market reaction going to be. I believe that institutions use risk events to get liquidity via stop hunts/ price manipulation hence the spike direction has no...
There was liquidity run as anticipated yesterday. Price stayed around in that pool and barely got out to make a meaningful trigger for me to Long AUDNZD. As Tokyo opens, we saw price breaks through above Friday's low suggesting it could be time for price expansion after accumulation. Having said that though, there will be risk events in 7 minutes as of i'm writing...
AUDUSD SELL TP_0.6833_1.90%_0.0132pips_SL_0.7031_0,93%_0.0065pip
usd price action after interest rate decision