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XAUUSD Analysis (14th May 2024) Market Analysis PT1/2 (14th May 2024) XAUUSD Analysis On the Daily timeframe, price has retraced to the 0,618 Fibonacci retracement level which is a key area where price could look to go long from. On the 4 hour timeframe, we have created a daily FVG, and price has rejected of it temporarily so we need to look for confirmations. dropping to the 15 minute timeframe, There are 2 scenarios i am looking at. 1) price creates A Change of Character with a body candle close above the 2346.06 level. This will indicate the 15 minute timeframe is shifting for bearish to bullish price action and we can look for a BOS to support that on the 5/15 minute timeframe in order to look for BUYS. 2) Price breaks through the 4 hour FVG/15 minute bullish OB, breaking past the 2328.31 level with a body candle close below. If this happens, Bearishness on Gold is still in play and we can continue to look for shorts during the London session.
FOREXCOM:XAUUSD
by CallistoFX
THE KOG REPORTTHE KOG REPORT: In last week’s KOG Report, we said if support held after the open we felt we would get a push to the upside into the order region and if the market held the region we felt an opportunity to short the market was available. That short trade worked well and after partials were taken it was protected. During the week we suggested traders trade caution and we would be looking to target that order region again on the long trade. Again, that trade worked well for us giving a fantastic pip capture half way through the week. We than said we would protect all trades as a break above that order region will then give traders the opportunity to long the market into the 2370-75 region where we would then likely see a reaction in price. Both these moves presented themselves, although the long wasn’t taken due to it being early session, the short at the end of the week was identified. The pip capture on gold was immense, not to mention the numerous other pairs we trade and analyse in Camelot. So, what can we expect in the week ahead? This week we’ll keep it simple, we’re looking for the market to open and hold these resistance levels so we can continue with a move back down into the order region to start with. So we have the resistance levels of 2360 and above that 2365, which if held could present an opportunity to short the market back down into the order region of 2350-55 with extension into 2345 which is where we’re expecting a temporary bounce in price. We need to be careful here as if this level is held during the early part of the week, we could see a complete correction of the move from Friday back into the 2343-35 region before any opportunity to swing low and then take the long trade back upside which we will monitor. The levels are on the chart as is the illustration, we’ll update as we always do during the week. Please note, it’s another big week this week funds wise and with the geopolitical cloud above us expect more extreme swings and whipsawing price action. Your SL is your friend, it’s the difference between you having an account to trade or not having one! Short report this week team so we'll keep it provisional for now. Please do support us by hitting the like button, leaving a comment, and giving us a follow. We’ve been doing this for a long time now providing traders with in-depth free analysis on Gold, so your likes and comments are very much appreciated. As always, trade safe. KOG
FX:XAUUSD
by KnightsofGold
13
XAUUSD Analysis (13th May 2024) Market Analysis PT2/2 (13th May 2024) XAUUSD Analysis On the daily timeframe, we have created a Change of Character to the upside at the 2352 level. Currently price is creating a pullback towards that key level. What i want to see is for price to come down lower towards the 2352 level before deciding whether to long or short. If price fails to create a 15 minute change of Character with a Body candle close above, i will be patient on longs and will be more short biased. However, if price action confirmations a retest of the 2352 level and creates a 15 minute Bullish CHOCH, i will be actively looking for longs to target the 2400 level.
FOREXCOM:XAUUSD
by CallistoFX
WHAT ARE REAL WORLD ASSETS (RWA)?Just 3-5 years ago, the concept of "real assets" was clear-cut - physical items that could be owned such as stocks, gold, and currency. On the other hand, "derivatives" referred to intangible assets like swaps, options, and CFDs that allowed for profit-making. However, the emergence of cryptocurrencies and blockchain technology has completely transformed this landscape. Not long ago, cryptocurrencies were seen as a separate entity, often labeled as a risky and unsecured financial scheme. But today, they are being recognized as valuable commodities and even as securities. What's even more fascinating is the rise of a new category - Real World Assets. 💡 Real World Assets are a unique category of financial instruments that are based on blockchain technology. 💹 Real World Assets is a market where real world assets are tokenized on the blockchain. These tokenized assets, which we refer to as real assets, are essentially moving traditional assets into decentralized financial applications. The goal is to leverage technology to potentially lower fees and management costs associated with these assets. 📍 REAL WORLD ASSETS EXAMPLES: ➡️ Stablecoins are a type of cryptocurrency that are centralized and backed by real assets. For instance, Tether's USDT is backed by stocks, government bonds, and fiat currencies, and undergoes some level of auditing. This process is known as tokenization, where the value of the collateral is denominated in stablecoins equivalent to fiat money. The pegging ratio is 1:1, meaning that the value of the stablecoin is directly tied to the value of the underlying assets. Any fluctuations in the value of the assets are balanced out by adding more collateral to maintain the stability of the stablecoin. 🔴 One major drawback of this model lies in the vulnerability to fluctuations in exchange rates of the real asset. In the event that stocks experience significant drawdowns of 20-30%, it is essential for the collateral to be able to mitigate this risk. Furthermore, as the stock value increases, Tether continues to issue additional USDT. Traders are already familiar with the challenges of decoupling stablecoins from their corresponding assets, particularly in the case of centralized stablecoins as opposed to algorithmic ones. ➡️ Private lending, specifically in the form of decentralized lending, has seen a significant player emerge in the form of DAO MakerDAO, the issuer of the DAI stablecoin. In a major move, this startup secured a hefty $100 million credit line with a US bank in mid-2022, backed by real assets as collateral. The startup was able to profit from this arrangement with an impressive 3% annual return. It is noteworthy that regulators did not pay attention to this deal. ➡️ Government bonds are a popular choice for investors seeking stability. Some companies have taken this a step further by issuing stablecoins that are backed by government securities. For example, Ondo Finance offers the USDY stablecoin, while Mountain Protocol offers USDM, which is based on Ethereum. These startups manage stablecoins backed by U.S. Treasury bonds, considered one of the most reliable instruments in the market. Investors can also earn passive income of 5% on top of the stability these investments offer. ➡️ Tokenized securities are on the rise, although the market has not yet reached its full potential. Bitfinex exchange is at the forefront of this trend, with their subsidiary launching the first tokenized bonds in October 2023. These bonds offer investors a tempting yield of 10% and a three-year maturity period. In essence, these tokenized securities work much like traditional bonds, where investors trade tokens for a share of the security and receive passive income in return. 🔴 Investors should be intrigued by the inquiry into how the issuer plans to allocate the funds raised and where the profit is being generated from. This question remains unanswered, as the tokenization process is still evolving. By 2024, HSBC, the British bank, is gearing up to introduce a service for managing tokenized bonds. In October 2023, JPMorgan and Barclays, along with investment firm BlackRock, unveiled a platform for transforming shares into digital assets called the Tokenized Collateral Network. ➡️ Green tokens are an emerging trend in the world of digital assets, with artificial intelligence specifically identifying them as a key player in the future. An interesting fact is that KlimaDAO, a startup backed by billionaire Mark Cuban, ultimately did not succeed in its mission to raise funds to incentivize companies to reduce their emissions. Despite this setback, the concept of green investments and tokens is likely to become a prominent tool in the future. This new form of investment may revolutionize the way companies approach sustainability and incentivize environmentally conscious behaviors. Stay tuned for more developments in the world of green tokens. ➡️ Paxos, a startup in the cryptocurrency industry, has made a connection to precious metals through the creation of gold tokens. Pax Gold has successfully replicated the value of physical gold, allowing investors to easily participate in the gold market without the need to purchase actual bullion or deal with brokers and confusing financial instruments like CFDs and swap fees. By purchasing PAXG cryptocurrency, investors can securely store it in a cold wallet, minimizing the risks associated with exchange bankruptcies or broker insolvencies. ➡️ In January 2023, the real estate startup MarketDAO facilitated a $7 million loan in cryptocurrency DAI to a French conglomerate. The loan was backed by mortgage bonds worth $40 million in US dollars. While this practice is still inconsistent, it marks the beginning of a promising trend in the real estate industry. ➡️ Paintings, sculptures, and other works of art, as well as collectibles, have long been valued for their beauty and uniqueness. The original concept behind NFTs was to revolutionize ownership by tying it to the blockchain, thereby ensuring copyright protection. In 2021-2022, we witnessed the initial steps towards digitizing and transferring paintings onto the blockchain. The future of this trend remains uncertain, but the concept has proven to be functional and shows promise for the art world. 🔴 The prospects for Real World Assets are significant and promising. However, accurately assessing these prospects is currently difficult as the tool is still in development and has not yet found its niche. Several factors are necessary for its success. 1️⃣ Firstly, there needs to be greater user engagement in cryptocurrency and digital technologies. Despite the widespread availability of the internet, not everyone has sufficient knowledge about these topics, let alone blockchain technology. 2️⃣ Secondly, there needs to be real interest and potential benefits from the tool. This can manifest in various ways, such as generating profit or simplifying certain actions. For example, the tool could speed up data transfers, protect copyrights, and make it more accessible for everyday users. Users must see the usefulness of the tool for it to be successful. 📍 CONCLUSION Currently, the reality is that the global market is valued at hundreds of trillions of dollars, a figure that the cryptocurrency market cannot compete with. For instance, as of 2020 estimates, the worldwide real estate market is valued at approximately $326 trillion in US dollars. According to RWA.xyz, the funds locked in blockchain technology total $4.5 billion, with just over $500 million in loans issued. However, the revolution of Real World Assets technology is on the horizon. In the next 1-2 years, this tool will begin gaining traction among the masses, similar to the rise of artificial intelligence in 2023. It is predicted that in 5 years, RWA technology will reach its peak of popularity. Traders, If you liked this educational post🎓, give it a boost 🚀 and drop a comment
Education
by Lingrid
2
Decoding the BoJ's Role: Impact on GBP/JPY ReversalThe GBP/JPY experienced a notable turnaround at the 200.500 level following reports indicating potential direct intervention by the Bank of Japan (BoJ) in the foreign exchange (FX) markets. This intervention, suspected to have occurred twice within a two-day span earlier this week, aimed to bolster the beleaguered Japanese Yen (JPY). Disclosure reports from the BoJ revealed a significant overspending on uncategorized financing operations, amounting to approximately 9 trillion Yen. This substantial deviation from expected financial activities strongly suggests the likelihood of direct market intervention in support of the Yen. However, official statements confirming or denying such actions have yet to be issued. Our analysis anticipates a retesting of the aforementioned price zone, followed by a continuation of bearish momentum in the GBP/JPY.
Short
by FOREXN1
2
USDJPY Looking for correction ??The USD/JPY pair has completed the impulsive wave sequence labeled as 1-2-3-4-5 and is now entering a corrective phase, typically labeled as A-B-C. The price has already formed waves A and B and is currently progressing towards wave C, which is expected to extend to the 1.618 Fibonacci extension level. Additionally, the formation of a head and shoulders pattern suggests a potential reversal or a downward correction in the price. Here’s a written summary of the analysis: USD/JPY Technical Analysis: - Impulsive Waves: Completed (1-2-3-4-5) - Corrective Waves: In progress (A-B-C) - Wave A: Completed - Wave B: Completed - Wave C: Targeting 1.618 Fibonacci extension Pattern Analysis: - Head and Shoulders pattern observed, indicating a potential reversal or correction.
Short
by joestar95
1
XAUUSD Analysis (10th May 2024) Market Analysis PT1/2 (10th May 2024) XAUUSD Analysis On the 1 hour timeframe, price has finally broken out of the 3 day range we have formed. As price is driving towards higher prices on Gold, Price has actually created a 1 hour Bullish FVG as well as a Bullish OB. There are 2 scenarios that could play out. 1) Price retest into the FVG and continues bullish after a quick retest, giving us a 5 minute Change of Character to the upside. 2) Price retraces deeper into the 1 hour OB. IF this happens i will wait for a 15 minute CHOCH before looking for potential buy entries.
FOREXCOM:XAUUSDLong
by CallistoFX
✅GOLD Prices Rebound Amidst Speculation on Interest Rate OutlookOn Monday, the price of gold experienced a rebound as market participants deliberated over the trajectory of interest rates in light of recent US employment indicators. According to Friday's data released by the Bureau of Labor Statistics, the US Nonfarm Payrolls report indicated that 175,000 individuals secured employment in April, falling below market expectations. Of particular note was the deceleration in wage inflation, with Average Hourly Earnings exhibiting a decline both on an annual and monthly basis compared to economists' projections. The current price of gold remains confined within a range-bound area or rectangle, with the preceding rebound observed around the $2288 mark potentially manifesting upon a retest of the upper boundary of this channel, with potential for further expansion. The underwhelming employment data suggests a potential for the Federal Reserve (Fed) to initiate interest rate cuts earlier than previously envisaged. This prospective scenario heightens the appeal of gold, as lower interest rates diminish the opportunity cost of holding the non-yielding precious metal. We anticipate a bullish continuation, adopting a scalping approach characterized by higher potential rewards but a lower win rate.
ICMARKETS:XAUUSDLong
by FOREXN1
1
EUR/USD Outlook: Factors Influencing Near-Term Price ActionThe EUR/USD exhibited a modest bearish tone and closed in negative territory during Tuesday's trading session. Despite attempts to recover, the pair struggled to regain traction after reaching a peak of 1.0800 in recent days. Looking ahead, today's economic calendar appears relatively quiet, with no high-impact data releases scheduled. However, market participants will keep a close eye on any commentary from Federal Reserve officials, as their remarks could potentially sway the pair's direction later in the day. Moreover, it's worth considering the seasonal tendencies that have historically influenced the EUR/USD movement. Over the past years, there has been a consistent pattern of price decline for the pair until the end of the month. This seasonal effect could further weigh on the EUR/USD in the near term. Furthermore, insights from the Commitments of Traders (COT) report reveal a notable shift in positioning among hedge funds and money managers. There has been a noticeable increase in short positions, suggesting a prevailing sentiment favoring bearish continuation. In light of these observations, there is a growing inclination to implement a more aggressive stop-loss strategy to manage potential downside risks effectively.
Short
by FOREXN1
3