GOLD: The Short-term Structure Looks Bearish Fed hawkish policy to fight inflation is putting in a high on GOLD. It's also about the speculation of how many hikes may happen this year. However, if FED will suddenly turns out to be less aggressive then this will quickly stabilize the gold prices, but for now, it looks like the current tone will not change so metals have room for more weakness.
At the same time I am also looking at DXY that is trying to break out of a triangle and towards 100 level.
Have a nice trading week everyone.
Grega
Hike
US10Y in-depth analysis - Why I think we will see Gold above 2k In this video I am going to show you why I think that we will have a major decreas e in bonds price this year. This is due to the fact that we are currently trading in a wedge shape , or a so-called Elliot Wave Diagonal which is characterized by a 5-Waves-Pattern , of which every inner wave is shorter than the first impulsive wave.
Fundamentally spoken, I do assume that rate hiking might already priced in the current Dollar and Bond prices. Therefore FED rate hike announcement might be the catalyst for several sell-off waves.
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RT
FOMC Setup on EUR/USDThe Federal Open Market Committee (FOMC) is expected to unveil another rate hike this Wednesday, December 19th 2018. Probability of a rate hike is quite high, as a neutral or easing federal funds rate would indicate "a need for stimulus" in the U.S. economy (God forbid the FED indicates weakness in the economy while the stock market is sitting just above critical support). A rate hike is an indication of tightening monetary policy, which fundamentally strengthens the dollar against other currencies. This will produce a down move on the EUR/USD (want to sell EUR for USD).
If rates remain neutral (unlikely), expect the dollar to weaken considerably (up move on EUR/USD).
If rates are lowered (unlikely), expect the dollar to weaken quite rapidly (up move on EUR/USD).