Gold trading strategy on February 27, 2023The dollar rallied to a seven-week high in the last session, after data showed US inflation continued to rise, while consumer spending rebounded in February, underpinning the outlook. Hope that the US Federal Reserve (Fed) will continue to aggressively raise interest rates to control inflation.
Hotter-than-expected data helped the greenback continue to rally against other currencies, taking the DXY index to 105.20 - a 7-week high and on track to post its biggest weekly gain since from the end of September 2022.
Money markets are now predicting the top US interest rate will hit 5.4% in July and expect it to stay above 5% for the full year, compared to the current target rate of 4. 5 - 4.75%. Markets have also priced the Fed will raise rates three times over the next three meetings.
At the opposite end of the spectrum, the euro fell 0.5% against the greenback at $1.054. Earlier in the session, it fell to a seven-week low of $1.0536. The British pound fell 0.68% against the greenback, at $1.1938.
Meanwhile, the dollar rose to a two-month high against the Japanese yen of 136.44 yen.
Trading recommendation:
Support level: 1,800.30 1,797.45 1,782.90
Resistance levels: 1,834.00 1,845.99 1,860.00
Trading recommendation:
Buy soup at the price range 1809 - 1808
Stop Loss: 1803
Take profit 1: 1823
Take profit 2:1830
Take profit 3: 1835
Note: Always set TP and SL in all trading cases
