Trading Short on Gold (XAUUSD)? USD, GBP & CHF Volatility. JPY in Focus.
Hey Valutraders! Did you see the volatility in EURUSD?
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I’m Brad Alexander and in today’s Market Blast, let’s look at WTI (USOil), NASDAQ (US100), USDJPY, GBPUSD, Gold (XAUUSD), and EURUSD.
As a surprise, 3 Central Banks did not change their Interest Rates.
For example, the USD weakened temporarily reacting to the lack of change but then strengthened.
The strength came from the Press Conference where investors and traders discovered that the Fed will reduce its bond holdings and Interest Rates will stay high for a while.
On the other side, the Bank of England did not raise Interest Rates either but said that they would monitor inflation and perhaps raise rates later.
However, GBP is still getting weaker.
But, the biggest surprise was the SNB who did not raise rates.
Keep an eye on JPY as the Bank of Japan will be making policy statements today and we see Yen getting a bit stronger.
The idea that the US Federal Reserve will maintain high Interest Rates affected the indices like the NASDAQ.
We are seeing some volatility in Brent Crude as Russia announced bans on gas and oil exports.
Keep an eye on this for more opportunities.
On the daily chart, price action on Gold has just bounced off the upper trend line and we may be seeing the forming of a double top.
The stochastic oscillator is overbought but, if you check other time frames, you will see that this is not the case so you may want to wait before going short on XAUUSD.
This week, we had a lot of fundamental events affecting the market so, hopefully, we will have some technical opportunities on Monday.
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