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.
USD/MXN is trading in a range
2022-12-16 • Updated
SELL 19.60; TP1 19.55; TP2 19.40; SL 19.62
Let’s try some range trading. It seems that such an opportunity has presented itself in the pair USD/MXN. This pair is quite used to sideways trading. On D1, we see that the upper wicks of the recent candlesticks have been longer than the lower ones - a sign that bulls are less powerful than bears and that the price will likely visit the lower end of the range. In addition, a “shooting star” pattern was formed near the upper Bollinger band, while the Stochastic oscillator crossed the signal line to the downside. As a result, the pair’s likely to test the middle Bollinger band at 19.55. The decline below this level will open the way down to 19.40.
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.
Hello, my beautiful readers. This week, we continue our critically detailed look at the markets in hopes of getting profitable trading opportunities. As usual, I'll be starting with the DXY (US Dollar Index) since it holds considerable sway over the Major currency pairs.
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?
Today, at 5:00 pm (GMT +2), the Bank of Canada will publish the Overnight Rate, which represents short-term interest rates, and is pivotal to the overall pricing of the Canadian Dollar in the global markets. Let's look at how the markets are faring ahead of the BoC rates release.