2024-04-03 • Updated
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 percent to address rapid inflation but may consider lowering them as price increases subside. However, the timing of rate cuts remains uncertain, with officials awaiting further evidence of sustained inflation moderation, likely delaying any action until June or July. Despite criticism, Powell reaffirmed the Fed's commitment to basing decisions on economic factors rather than political considerations.
After the initial break of structure on the 4-hour timeframe of AUDUSD, we’ve seen price make a run for the previous area of supply. This region is crucial because it is a supply zone that is being tested right after a sweep of liquidity. Also, we see the bearish array of the moving averages, as well as the equal lows down below, which could serve as a good level for another run on liquidity. All in all, my sentiment here is bearish.
Analyst’s Expectations:
Direction: Bearish
Target: 0.65210
Invalidation: 0.65781
EURUSD recently broke below the previous low, hence, I expect price to make a return to the supply zone that engineered the break of structure. Also, the confluence of the 100 and 200 period moving averages may be considered a viable area of resistance, especially since the moving averages are in a descending order. Finally, the 88% of the Fibonacci retracement, and the rally-base-drop supply zone are the final pieces of the puzzle towards my bearish sentiment.
Analyst’s Expectations:
Direction: Bearish
Target: 1.07797
Invalidation: 1.08657
GBPUSD is currently reflecting the price action on EURUSD, albeit with some slight modification. Here on the 4-hour chart of GBPUSD, we see the initial break of structure, and the race to retest the supply zone that engineered that break. Also, we clearly see the bearish array of the moving averages, the 88% Fibonacci retracement level, trendline resistance, as well as the overlap of the 100 and 200 moving averages with the rally-base-drop supply zone. All these point to the likelihood of a bearish outcome.
Analyst’s Expectations:
Direction: Bearish
Target: 1.25897
Invalidation: 1.26766
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.
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During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...
Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
Bearish scenario: Sell below 2200 / 2194 ... Nearest bullish scenario: Buy above 2197... Bullish scenario after retracement: Consider buys around each indicated demand zone
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