As you must already know, the direction of Gold is mainly dependent on the Price action of DXY (US Dollar index). So first, we take a look at the US Dollar index.
AUD/USD: the Aussie is not afraid of waves
2019-11-11 • Updated
TP 0.7905 TP2 0.7985 TP3 0.8075
On the daily chart AUD/USD, the “Wolfe waves” pattern is developing. If bulls manage to return the Aussie to the resistance at $0.7815, break it and take the pair beyond the downtrend channel, risks of the uptrend’s recovery will increase.
On H1 of AUD/USD, the break of the resistance at 23.6% from the last downtrend wave with the subsequent successful hit of the upper bound of the bearish channel will implement “Bat” and “Crab” patterns with 88.6% and 161.8% targets.
On January 12, the Bureau of Statistics will publish the Consumer Price Index (CPI) figures, a key index for determining interest rates. While we await the release, experts forecast a decline in the CPI data, a hint at weaker Dollar values in the global markets.
Later today Tiff Macklem, the governor of the BoC (Bank of Canada) is expected to speak at the Riksbank's International Symposium as part of a discussion panel on 'Central Bank Independence'.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.