XAU/USD (Gold) Trendline BreakoutThe XAU/USD pair on the M30 timeframe presents a potential Buying opportunity due to a recent breakout from a well-defined Trendline pattern. This suggests a shift in momentum towards the upside in the coming Hours.
Key Points:
Buy Entry: Consider entering a Long position around close to the breakout level. This offers an entry point near the perceived shift in momentum.
Target Levels:
1st Support – 2663
2nd Support – 2689
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Breakout retest possible...Weekly Breakout was Triggered around 370 - 375.
Best Buying Opportunity would be if it comes to
re-test the Breakout level.
Immediate Supports can be around 410 - 412,
390 - 392 & then the Breakout Level (around 375).
Immediate Targets can be around 520 - 525.
However, 297 should not be broken.
Puts/Short setup on DRI (Darden Restaurants)NYSE:DRI gapped Up on Dec 19th. Fibonacci technical analysis: Now finding Resistance at Fib level –61.8% (188.82) on Upward Fib and Double Top formed. Price likely to retrace lower to retest the gap.
My Downward Fib shows retracement levels 38.2 % at 171, 61.8% at 166.5, and 78.6% at 164.
PUTS on NYSE:DRI with Target 1 at 178, Target 2 at 171, and Target 3 at 166.5
Stop Loss slightly above the –78.6% extension Fib level (199.25)
You will lose money if you don't HODL! CRYPTOCAP:BTC closed below it's 1W S and alts are bleeding.
This is okay because you should wait and ride it out!
This is just an extreme shakeout.
In 2025 CRYPTOCAP:BTC and alts will recover and make new ATHs.
If you don't sell you can't lose.
Just be patient and keep BUYING THE DIP!
I'm watching #VIRTUAL and GETTEX:HYPE here!
GBPUSD Potential DownsidesHey Traders, in today's trading session we are monitoring GBPUSD for a selling opportunity around 1.26000 zone, GBPUSD is trading in a downtrend and currently is in a correction phase in which it is approaching the trend at 1.26000 support and resistance area.
Trade safe, Joe.
Cosolidation Approaching The Main Downtrend on AUDUSDHey Traders, in today's trading session we are monitoring AUDUSD for a selling opportunity around 0.62900 zone, AUDUSD is trading in a downtrend and currently is in a correction phase in which it is approaching the trend at 0.62900 support and resistance area.
Trade safe, Joe.
GOLD (XAUUSD): Your Trading Plan for Today
If you decided to trade today, there is one potential
shorting opportunity for Gold.
Following my recent update, the price is testing a recently
broken daily horizontal structure at the moment.
On an hourly time frame, the price formed a tiny double top on that.
2621 - 2625 is its neckline.
To sell the market with a confirmation, wait for a bearish breakout of
a neckline and an hourly candle close below that.
Sell aggressively or on a retest then.
Targets will be 2608 / 2600.
If the price sets a new higher high,
the setup will be invalid.
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Tesla - Breakout level re-test complete. Could launch from hereHello Traders.
Looking at Tesla you can see many things that show Tesla is positioned to launch from here.
1.Previous times on the 2Hr since November when the 20/50 EMA crossed(DeathCross) Tesla went up shortly thereafter. It just crossed again.
2. Tesla recently broke out from ATH... but in the last few days came back down in a much needed cooling off and retested the breakout price and has bounced. This is MEGA bullish in my book.
3. You can clearly see an inverse Head & shoulder as well...
4. Bounced off the 2h 100EMA and Monthly VWAP.
So without even showing other indicators ,which agree as well, You can clearly see Tesla is positioned for another mega bullish run. We could see 500+ by end of Christmas week.. and it heading even higher into the new year.
Gold Market Update: December Week 4 Opens with Supply TakeoutGold opens the fourth week of December, continuing its move to take out supplies at $2636. The market indicates a potential sweep of demands at $2608 before the next hedge opportunity arises. Traders are advised to align with the prevailing momentum as the market navigates critical levels follow for more insight .
KIO.JSE Kumba Iron Ore. High Risk / High Reward.Kumba Iron Ore is currently Trading above Recent Lows.
Single Commodity Tickers are always inherently a High Risk / High Reward Scenario.
They are the current Market Price Takers.
Should the China Stimulus result in Positive result's , not just hype, then I expect the Demand for Steel and Iron Ore to increase and hence this Tickers Stock Value.
I've Charted the Recent Lows and Highs for your Perusal.
As always, please get a few outside Expert's Advice before taking Trade or Investment Decisions.
Should you appreciate my Chart Studies, Smash That Rocket Boost Button. It's Just a Click away.
Regards Graham.
Fed Rate Expectations: How Are They Formed?Changes in the Federal Reserve's funds rate have far-reaching implications for nearly all existing assets. When the rate increases amidst moderate inflation, the U.S. dollar TVC:DXY typically strengthens, attracting capital from both the cryptocurrency and stock markets. Conversely, if inflation is rising rapidly and the Fed is compelled to aggressively raise rates to stabilize the economy, investors often interpret this as a sign of underlying trouble, prompting them to shift their assets into TVC:GOLD . However, it is essential to recognize that the Fed’s decisions are reactions to prevailing economic conditions. More crucially, market expectations regarding the Fed's rate movements—shaped by collective sentiment—play a significant role in shaping economic outcomes. This post explores the factors that form these expectations.
📍 Key Indicators Influencing Expectations for the Fed Funds Rate
The market tends to respond significantly only when actual changes in the funds rate diverge from expectations. If adjustments align with market forecasts, the exchange rate of the U.S. dollar typically remains stable. Thus, accurately predicting the Fed's actions is vital for investors and traders.
1. Labor Market Dynamics
The labor market is a primary focus for the Fed. The Bureau of Labor Statistics (BLS) releases employment reports every Friday, providing insight into unemployment rates. The Fed maintains a forecast range for acceptable unemployment levels—generally between 4.2% and 4.8%—indicating economic balance. An uptick in unemployment signals economic weakness, often prompting a reduction in the funds rate. Conversely, a decline in unemployment raises concerns about potential economic overheating, which could lead to tighter monetary policy.
2. Inflation Trends
The Fed’s target inflation rate is set at 2%. As inflation rises, the Fed typically increases the funds rate to curb borrowing. This was clearly illustrated during the 2022-2023 period, where persistent inflation above 8% led to a series of rate hikes. In contrast, deflation would necessitate maintaining ultra-low funds rates. Additional indicators to monitor include wage trends, inflation expectations, and the consumer price index (CPI).
3. Overall Economic Health
Gross Domestic Product (GDP) is a key indicator of economic health. Although GDP data is often retrospective, it reflects long-term economic trends. A decline in GDP may prompt the Fed to adopt stimulative monetary policies. Analysts often utilize the GDPNow model, developed by the Federal Reserve Bank of Atlanta, to obtain real-time estimates of U.S. GDP growth.
4. Treasury Yield Curve
The yield curve illustrates the relationship between bond yields of different maturities from the same issuer. A flattening yield curve typically signals economic slowdown, while long-term bonds yielding less than short-term bonds can foreshadow a recession. The Fed could respond to such signs by adjusting funds rates higher depending on the crisis’s underlying causes.
5. Global Economic Influences
Economic conditions in other major economies, particularly China and the European Union, can indirectly impact the U.S. economy due to deep economic ties. Monitoring central bank funds rates and the Purchasing Managers’ Index (PMI) in these regions is essential.
6. The Dollar’s Exchange Rate Against Key Currencies
A strong U.S. dollar can adversely affect American exporters. If other central banks, such as the Bank of Japan or the European Central Bank, adopt accommodative monetary policies, the Fed may also consider lowering rates to avoid a detrimental trade balance caused by a strengthening dollar.
7. Market Expectations
Investor sentiment creates a feedback loop. With over 50% of Americans investing in equities, a hawkish stance on funds rates tends to increase bond yields and instigate a sell-off in securities, negatively impacting overall economic wealth. Investors’ anticipation of potential rate cuts can pressure the Fed to align with these expectations.
8. Communication from Fed Officials
The rhetoric from Fed officials often hints at future monetary policy, providing insights into rate expectations based on their communications. Numerous indicators, including analysts’ forecasts and futures trading on key rates, contribute to understanding the Fed's policies. Due to the complexity of these influencing factors, relying solely on fundamental analysis for trading is not advisable for beginners.
📍 Conclusion
Forecasting changes in the Fed's funds rate often begins with the first clear signals about the Fed's potential actions. The primary motivations guiding the Fed are the control of inflation and the management of unemployment—making these two indicators crucial for predictions regarding monetary policy. Additionally, it is essential to consider fundamental factors impacting other major currencies.
Traders, If you liked this educational post🎓, give it a boost 🚀 and drop a comment 📣
EURGBP Eyes Upside After Holding Key LevelHello,
OANDA:EURGBP is currently heading towards the 1M PP, but before it can confirm this move, it needs to establish stability above the previous high. Once it holds above that level, we may see a clear break and a potential rally towards the PP, opening the door for further upside.
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EURAUD: Awaiting Breakout for Bullish ContinuationHello,
FX:EURAUD is currently near its 3-month high at 1.671575. What we're waiting for now is a breakout and sustained move above this level to signal further upward momentum. If this doesn't occur, a downward movement is likely. There are expectations for continued bullish movement, but confirmation is still required.
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EURCHF: Break Above or Below 1M Pivot for Trend DirectionHello,
For further bullish movement, OANDA:EURCHF needs to break and hold above the 1M pivot point. Conversely, a break and hold below it will confirm a continuation of the downside trend.
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WTI Bullish Outlook, Caution Below 1M PivotHello,
BLACKBULL:WTI is likely to experience continued bullish momentum, as the price recently closed above the 1M pivot point, signaling potential for further gains. However, as a cautionary note, if the price falls and settles below the 1M pivot point, we could see more downside movement.
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BRENT Faces Further Downside Before RecoveryHello,
BLACKBULL:BRENT is likely to experience more downside before we see any upward movement. If the price fails to settle above the 1M PP and maintain that level, new lows are expected.
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GER30: Key Pivot Points Dictate Next MoveHello,
FX:GER30 may experience further downside, potentially retesting the 1M pivot point if the 1D pivot point continues to act as resistance. However, if the 1D pivot point holds as support, an upward move could be on the horizon.
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UK100: Downside Likely Below 8225, Upside AboveHello,
CAPITALCOM:UK100 may experience further downside if 8225.064 holds as resistance. However, if the price manages to break and secure a position above this level, an upward movement could follow.
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AUS200: Key Resistance Signals DownsideHello,
PEPPERSTONE:AUS200 is likely to face further downside if the 1-year resistance level at 8107.5465 holds. This level has previously served as support, and if it now acts as resistance, it would confirm a significant bearish outlook.
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FRA40 Upside Hinges on 1M PP BreakHello,
PEPPERSTONE:FRA40 is likely to gain momentum now that the 1Y PP has acted as support. However, a sustained break and close above the 1M PP is crucial; otherwise, further downside risks remain.
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