Buygold
How does the market react after inflation peaks ? Hi guys, today I bring you an important point for macro analysis.
Many believe that seeing a significant improvement in economic data, especially those linked to inflation, showing that it is slowing down is something positive, is it really?
In a way, it's a positive metric when looked at in isolation, because inflation brings major disturbances to the economy, but that's a topic for another post.
What matters is that the mere fact that inflation has marked a possible peak and the Fed has started to reduce interest rates does not mean that we are going to have a bottom in the market!
Currently big banks are warning about the recession, and this for us, is not news, but look at this headline: "Jamie Dimon, CEO of JPMorgan Chase, talks of recession next year"
But here we had already been talking about this recession for some time, after publishing a study talking about the inversion of the yield curve, in that study there was the following sentence: "According to the data available on the Federal Reserve website, the inversion of the yield curve preceded all American recessions since 1950, with the exception of a false signal in 1967."
This publication was made on the
So, yes, we have a contracted recession, but what does that have to do with peak inflation?
Inflation brings, as a consequence, a scenario of uncertainties in the economy, and discourages new investments from being carried out. In practice, this causes difficulties for the country's economic growth, and once we have this combined with high interest rates, growth becomes even more difficult.
So, even though inflation has reached its peak, interest rates are still very high, and we continue to struggle with economic growth and this usually happens, see the chart, after inflation peaks we had big drops.
Will we see something similar again?
Tell me your opinion here!
Gold, One More High before pull backhi! I see gold could make OMH (One More High) to 1842 area before major pullback.
this setup provides good R:R too!
trade well,
Alex
New Gold Trade Available now + Full Gold Analysis
This Is An Educational + Analytic Content That Will Teach Why And How To Enter A Trade
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Disclaimer : This Analysis Can Change At Anytime Without Notice And It Is Only For The Purpose Of Assisting Traders To Make Independent Investments Decisions.
GOLD Hit All Targets +270 Pips CONGRATULATIONS Folks This Is An Educational + Analytic Content That Will Teach Why And How To Enter A Trade
Make Sure You Watch The Price Action Closely In Each Analysis As This Is A Very Important Part Of Our Method
Disclaimer : This Analysis Can Change At Anytime Without Notice And It Is Only For The Purpose Of Assisting Traders To Make Independent Investments Decisions.
XAUUSD GOLD Supply And Demand Trade IdeaHigher timeframe:
-Price low on the weekly range.
-Price inside monthly RBR demand/ reacting off of support
-inflation,war, bullish commodities long-term.
-Look for buys on lower timeframes.
Lower timeframe:
-Price broke 4hr downward trend lines
-Price removed opposing 4 hours supply zones.
-Quality 4hr/1hr Demand Created
-Waiting for pullback into demand.
Let me know your thoughts....
Gold At Important Weekly Support AreaBuy After Bullish Candle Pattern (Hammer, Inverted Hammer, Dragonfly Doji, Three White Soldiers) Or If Inside Bar Formed And Broke Up. Check On Daily & Weekly Time Frame.
Always Use Risk Management And BreakEven Technique To Your Ideas.
SL = 1670.00
TP1 = 1830.00
TP2 = 1920.00
TPs Are Based On Fibonacci Levels.
Are You Agree With My Trading Plan?
Good Luck & Trade With Care.
ForexCityPK
How To Look For a High probability Buy on XAU/USD 4-HOURHi Traders,
Gold seems to be setting up for a High probability trade. I love how price is currently consolidating in a Falling wedge kind of manner, this indicates the first signs that price may continue exploding higher.
Price is also currently bouncing off support at 1834.5, If this price holds, we will most definitely see price start tempting the highs of 1841.3 If Price is able to break this level I will start planning for a long position and ride the wave to 1873.
This setup is pretty straightforward and by the book, as they say, our job now is to wait.
If price does break and close below the support of 1832.3 I will no longer be interested in Long positions.
Be safe in the markets.
Renaldo Philander.