As they struck a cautious tone, the Fed minutes offered some breathing room for risk assets, with the committee seemingly mindful of the potential increase in US inflation in the second quarter and reluctant to overreact until it is sure that inflation will reach 2% for some time. Emerging market FX remains relatively resilient amid the notable increase in US Treasury yields this year. Not only are EM FX valuations not excessively stretched, many EM currencies are benefiting from increasing commodity prices, but this FX segment should continue to display signs of relative resilience as long as the increase in US Treasury yields is followed by improving global economic prospects. Looking forward, if the Fed is able to walk the fine line between improving economic data and communicating it, the consequent orderly increase in treasury yields does not derail the constructive outlook for the coming months for high yielding cyclical EM FX.
Daily Update
Nice, what was your entry price? Stop/Profit target?
This is very solid. Would like to see more please
For that, you have to visit the website money life research. In a given post below the image click on the Daily update, which will redirect on the web page. There you will find all the updates.
Or you can just tell us here.
Is this a repost from that website?
Yes… This is a repost from the Money Life Research website. You can found much more information from there only.
technical update on XAU/USD
FYI- that channel as drawn is not valid as there is a violation b/w Feb 15-19.
Unless you’re trying to deploy a FIB channel…even then, you’ll want to add another descending line.
USD: showing tenacity
Global yields have stabilized, paving the way for a large rebound in risk assets, with the S&P500 having its best day in nine months. In terms of foreign exchange, G10 commodity currencies led the way, but the dollar held its ground despite poor demand for low-yielding assets. The Swiss franc remained a big laggard, as markets may have used the opportunity to unwind CHF long positions that had been built up during the pandemic. If risk assets remain supported, the USD/CHF could break above 0.9200. Asian equities have indicated that risk appetite is waning, and stock index futures in Europe and America point to a poor start. Data-wise, it’s been a reasonably quiet day after a solid ISM Manufacturing report appeared to back up inflation fears. For the time being, with low-yielders bearing the brunt of any equity rally, the US dollar can prove resilient if risk assets return to positive territory.
USD: The FOMC’s Brainard should give risk assets some breathing space
FX markets have stabilized overnight, assisted in part by comments from Lael Brainard of the Federal Open Market Committee, who reported that she has been paying close attention to recent moves in US Treasury yields. Since UST uncertainty is currently the biggest risk to risk assets and cyclical FX, these remarks should give higher beta FX some breathing space. In the United States, the priority is on February ISM Facilities. We expect a minor correction from the January reading, which should help risk assets stay stable.
Gold
Weekly changes: XAUUSD -1.59
After slow-burn over the past two weeks, gold found support at the level of 1,700. The precious metal has its worst first quarter in almost four decades.
The decline comes as higher yields dent the appeal of gold, which offers no interest. The strong dollar sank gold prices to a nine-month low as investors sold the precious metal to reduce the opportunity cost of holding the non-yielding asset.
KEY POINTS
The optimism that the rollout of Covid-19 vaccines will drive a global recovery has pushed investors to switch from the traditional haven gold to other assets.
Federal Reserve Chair Jerome Powell stopped short of forcefully pushing back against the recent surge in long-term borrowing costs, sending U.S. Treasury yields soaring.
The adoption by the Senate of President Joseph Biden’s 1.9 trillion USD coronavirus relief bill, which should hand the U.S. a larger budget deficit and higher debt-to-GDP ratio — both is good for gold.
Comment on Gold
In yesterday’s trading session, the world gold price had a bounce to test the “old peak of 1740” but once again did not pass and then declined slightly again after that. At the end of yesterday’s session, precious metal Gold closed with a slight decreasing candle around 1728. With the last 2 days, the amplitude slowed down and the upside force was restrained at around 1740. In my personal opinion, we can resell when the price approaches this price zone.
- Looking at the shorter timeframe H4 we see selling pressure around the resistance zone 1740 so at this price zone we would prefer to sell short to yesterday’s range of 1728 and the expectation is 1721. At this price zone, let’s liquidity and wait for the signal of the breakout of gold precious metal.
Comment on Gold on March 19, 2021:
At the end of the session yesterday, the world gold price had a strong decline from 1755 to 1719 ($ 36), but at the end of the session, the price of Gold rebounded and closed the daily candle at 1732 with a tree. candle draw legs. In my opinion, after the gain of Wednesday night, yesterday the price dropped just like that, back to the sideways 1723-1740. So we can trade the precious metal Gold in these 2 margins.
- Moving to the H4 time frame in my opinion, Gold may still be under downward pressure in the beginning of today’s session to come back to test the 1716-1720 price range again. Only consider the signal of a reversal of Gold here. If the precious metal Gold does not pass this price range, it is likely that Gold will have an uptrend again.
- One more thing in my opinion, we should limit trading in the middle of the current price in the beginning of the Asian session to wait for the deep waves of this precious metal to establish an entry position that will be safer for the asset. our account.
Comment on Gold on March 22, 2021:
At the end of last week’s trading session, world gold price had a bounce from 1719 to 1755 ($ 36) to close last week’s candle with a candle that increased higher than next week. While the upside momentum on the weekly chart time frame is there, it is currently facing the resistance zone of 1755-1760. So in my personal opinion would continue to prioritize Sell when the precious metal Gold approaches this price range.
- Considering the weekly chart time frame, we can see that the last 3 trading days, the closing and closing price has not broken through the 1745 price range and has not broken through the 1730 price zone, so we can trade in the market. These 2 bands then wait for the strong breakout of gold precious metal.
- Switching to the smaller timeframe H4 we can see the nearest resistance price zone we can establish a sell-down position with this precious metal at 1741-1746 and the target will remain safe on the price zone 1727-1732 in early trading today.
This is a very insightful explanation. Thanks for sharing, appreciate it big time!
Closing last week’s trading session Gold precious metal had a week of increasing from 1721 to 1759 ($ 38) and closed the week at the price zone of 1743. With the close of the week with this bullish candle combined with The next 2 candles next week Gold created a pair of short-term bullish reversal candles. Therefore, in my opinion, the buy option will be given priority in the first sessions of this week.
- Judging from D1 time frame, we can see that in the last Friday night, although Gold price had strong decline sessions, however, at the end of the session, there was a buying force and ended the daily candle with a candle. Lower withdrawal, the closing price of the daily candlestick was still quite high at 1743.
- In the beginning of today’s session, in my opinion, we will prioritize buying when the price is good and expect the GOLD to correct to around 1732-1738 in order to establish a buy position. The first target that precious metals need to conquer is around 1758-1760. If you pass this price zone, the price zone of 1775 will be the next destination for gold precious metal.
At the end of last trading week, gold precious metal had strong growth rate from 1722 to 1785 (63 $) to close the week at 1776 price zone. With strong increase of gold precious metal in 2 At the end of the week, the resistance area over the past month at 1755 was officially broken, turning this price area into the support price zone of precious metals in this week’s session.
- Still considering the weekly chart (W1), at present, the precious metal Gold is facing a fairly strong resistance zone around 1785-1795 and in order to go up to the above high price range in my opinion, it is possible. Gold will have to have a slight correction to around the threshold it broke last week around 1755 to be able to rebound.
- In the beginning of the session today we think we can sell short around the 1785 price range. The safe target is 1762 and expect Gold to reach the 1745-1755 price zone. Here we will consider buying this precious metal.
I find gold as one of the best options to invest my money for the long-term. I do trade forex but when it comes to making bigger investments, it is only gold that I trust. Apart from online investments, I have also invested in the physical gold to make better profits.
At the end of yesterday’s session, the world gold price had a strong bounce from 1777 to 1797 ($ 20), overcoming the “old peak” area of ​​1790 that Gold had established on Monday at the beginning of the week. The daily candlestick closed with a strong increase in 1793, significantly exceeding the closing price of the three preceding days. With the close of the daily candle, the possibility that in the beginning of today’s session, the gold precious metal will continue to be supported to increase to the next resistance zone and in my opinion the price zone around 1805 is the area where precious metals. heading for the day.
- Considering the shorter time frame H4 we can see that this precious metal is still having good momentum so early today we can establish a buy position if Gold bounces around the threshold. 1784-1788. The target is the price range 1800-1805. Here we shall wait for Gold’s response and watch for a sell signal.
