🔰 Pair Name : XAU/USD
🔰 Time Frame : 4H/DAILY
🔰 Scale Type : MID Scale
🔰 Direction : SELL
📈 Fundamental Analysis: Fed's Latest Minutes and Inflation Concerns 📉
Today's release of the Fed's FOMC minutes, a 10-page PDF, has unveiled a crucial focal point: the Federal Reserve (the Fed) is showing heightened concern over inflationary pressures. 📊💹
Inflation Concerns: The text consistently underscores that inflation remains elevated, well beyond the Fed's 2% target. Participants are resolute in their commitment to reining in inflation to the 2% benchmark, implying their view that elevated inflation looms as a significant challenge. 📈💰📉
Rate Hike Decision: The Committee has opted to lift the federal funds rate target range to 5¼ to 5½ percent. This strategic move aims to sustain the tightening of monetary policy, fostering equilibrium between demand and supply within the economy to restore price stability. ⚖️🏦💱
Balancing Policy: Delving into the delicate balance between avoiding excessive policy tightening and the potential costs of insufficient tightening, the Committee acknowledges the imperative of striking the right chord to tackle both inflation and economic growth head-on. ⚖️📈📉
Upside Risks to Inflation: Notably, participants generally concur on the existence of substantial upside risks to inflation. This stance suggests a readiness to take further measures to preempt the ascent of inflationary pressures. ⬆️🔝📈
Data-Dependent Approach: The Committee underscores its responsiveness to incoming data and its subsequent influence on the economic outlook, inflation, and potential risks. This underscores the adaptive, data-driven strategy in shaping future policy decisions. 📊🔍📉
Ongoing Assessment: The Committee's roadmap entails scrutinizing additional data in the upcoming months to ascertain the degree of policy tightening requisite for steering inflation back to the 2% target over time. 🔄📆💹
Commitment to Communication: A resolute commitment to effective communication underscores the Committee's data-driven approach and unyielding dedication to achieving the inflation objective. 📢📋💬
In conclusion, the released information strongly indicates that the Fed is earnestly contemplating further interest rate hikes to address the pressing concerns surrounding inflation. However, it's vital to acknowledge the intricate interplay of economic and financial variables that influence monetary policy decisions. The Fed's course of action hinges on the dynamic evolution of economic conditions and incoming data. 🏦💡📊
📊 Technical Analysis: Gold's Intriguing Price Movement 📉
Turning our attention to the technical perspective, Gold has made significant movements. It successfully breached the daily Fibonacci level of 38.2% and the 4-hour Fibonacci level of 100%, effectively breaking through the pivotal daily demand area at approximately 1900. 📈🔍🏆
Our projection indicates an impending journey towards the 4-hour Fibonacci level of 127%, followed by a retest of the daily support zone around the 1900 mark. Subsequently, we anticipate a final descent towards the daily Fibonacci level of 50%, targeting the subsequent daily demand zone situated around 1804. ⏬🎯🔍
Happy trading! 📈📉💹🤝
🔰 Time Frame : 4H/DAILY
🔰 Scale Type : MID Scale
🔰 Direction : SELL
📈 Fundamental Analysis: Fed's Latest Minutes and Inflation Concerns 📉
Today's release of the Fed's FOMC minutes, a 10-page PDF, has unveiled a crucial focal point: the Federal Reserve (the Fed) is showing heightened concern over inflationary pressures. 📊💹
Inflation Concerns: The text consistently underscores that inflation remains elevated, well beyond the Fed's 2% target. Participants are resolute in their commitment to reining in inflation to the 2% benchmark, implying their view that elevated inflation looms as a significant challenge. 📈💰📉
Rate Hike Decision: The Committee has opted to lift the federal funds rate target range to 5¼ to 5½ percent. This strategic move aims to sustain the tightening of monetary policy, fostering equilibrium between demand and supply within the economy to restore price stability. ⚖️🏦💱
Balancing Policy: Delving into the delicate balance between avoiding excessive policy tightening and the potential costs of insufficient tightening, the Committee acknowledges the imperative of striking the right chord to tackle both inflation and economic growth head-on. ⚖️📈📉
Upside Risks to Inflation: Notably, participants generally concur on the existence of substantial upside risks to inflation. This stance suggests a readiness to take further measures to preempt the ascent of inflationary pressures. ⬆️🔝📈
Data-Dependent Approach: The Committee underscores its responsiveness to incoming data and its subsequent influence on the economic outlook, inflation, and potential risks. This underscores the adaptive, data-driven strategy in shaping future policy decisions. 📊🔍📉
Ongoing Assessment: The Committee's roadmap entails scrutinizing additional data in the upcoming months to ascertain the degree of policy tightening requisite for steering inflation back to the 2% target over time. 🔄📆💹
Commitment to Communication: A resolute commitment to effective communication underscores the Committee's data-driven approach and unyielding dedication to achieving the inflation objective. 📢📋💬
In conclusion, the released information strongly indicates that the Fed is earnestly contemplating further interest rate hikes to address the pressing concerns surrounding inflation. However, it's vital to acknowledge the intricate interplay of economic and financial variables that influence monetary policy decisions. The Fed's course of action hinges on the dynamic evolution of economic conditions and incoming data. 🏦💡📊
📊 Technical Analysis: Gold's Intriguing Price Movement 📉
Turning our attention to the technical perspective, Gold has made significant movements. It successfully breached the daily Fibonacci level of 38.2% and the 4-hour Fibonacci level of 100%, effectively breaking through the pivotal daily demand area at approximately 1900. 📈🔍🏆
Our projection indicates an impending journey towards the 4-hour Fibonacci level of 127%, followed by a retest of the daily support zone around the 1900 mark. Subsequently, we anticipate a final descent towards the daily Fibonacci level of 50%, targeting the subsequent daily demand zone situated around 1804. ⏬🎯🔍
Happy trading! 📈📉💹🤝
Trade active
Note
Slight retracement observed at the daily supply zone. Prepare for a big selling opportunity ahead!Note
Note
buy not going to happen until 1880 at least
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.