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.
EUR/USD is losing ground
2019-11-11 • Updated
TP1 1.1425 TP2 1.1310 TP3 1.1200
On the daily chart, bears managed to lead EUR/USD to the lower border of the 1.1510-1.1780 range. It was formed in line with a “Spike and ledge” pattern. A successful test of support at 1.1510 will increase the odds of AB=CD with the 200% target.
On H1, EUR/USD reached the targets of a “Broadening wedge” and 5-0. Pullbacks to 23.6% and 38.2% of the wave CD of the “Shark” pattern allowed to form short positions. A break of support at 1.1510 will trigger the AB=CD pattern.
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.
The trend in the scenario above is clearly bearish. We have also had a recent break of structure at the marked horizontal arrows, which means we can expect price to react from the supply zone that broke the structure.
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.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?