Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
Gold: breaking the downtrend?
Information is not investment advice
On February 26, a downward channel started forming. The upside of the channel was mostly limited by the 50-MA. Currently, the price is flirting with both the 50-MA and 100-MA which will define the destiny of this channel now. Hence, your action plan below.
- Watch for bullish signs on lower timeframes; if they form while the price is at 100-MA, the price will likely cross its resistance; in this case, the target will be 200-MA at 1730
- Watch for reversal signs on lower timeframes; if they form while the price is at 100-MA, a bounce downwards will likely take place: in this scenario, the support of 1680 will likely be crossed
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.