Brad Alexander
FX Large Limited
Now that things are settling down, the world has come to the conclusion that the central banks may not be lowering Interest Rates as much as we would have hoped.
This has caused a weakening in the stock markets and we can see from the US indices that we are in decline.
Before we get into it don’t forget to Like, Follow and Subscribe and feel free to leave a comment on what you would like to see in future videos.
If we look specifically at the S&P 500, the trend lines are obvious and the logical trade is “Short” or “Sell.”
But, wait for a bounce off the upper trend line and some confirmation from your favourite technical indicators.
You may ask, “Are we in a Bear Market?”
Technically, no as price action is well above the 200-day simple moving average.
In fact, if we look at the DJIA, we see where the 50-day crossed the 200-day and we call this a “Golden Cross” and look at what happened.
If we look at the USD pairs like USDCHF, we can see a big jump in the strength of the Greenback based on higher-than-expected inflation figures.
These are NOT conducive to any Interest Rate reduction so, the USD gets stronger and the equities continue to fall.
We promised to keep an eye on a possible reversal in Silver and Gold.
If you were paying attention you may have taken a short position based on a reversal of the stochastic oscillator and MACD on the one-hour chart on XAGUSD.
And, exited here.
Take a look at higher timeframes, however, as we may need to wait for more short opportunities.
That’s all for now.
CFDs and FX are leveraged products and your capital may be at risk.
While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
Recommended Content
Editors’ Picks
AUD/USD retargets the 0.6600 barrier and above
AUD/USD extended its positive streak for the sixth session in a row at the beginning of the week, managing to retest the transitory 100-day SMA near 0.6580 on the back of the solid performance of the commodity complex.
EUR/USD keeps the bullish bias above 1.0700
EUR/USD rapidly set aside Friday’s decline and regained strong upside traction in response to the marked retracement in the Greenback following the still-unconfirmed FX intervention by the Japanese MoF.
Gold advances for a third consecutive day
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
Bitcoin price dips to $62K range despite growing international BTC validation via spot ETFs
Bitcoin (BTC) price closed down for four weeks in a row, based on the weekly chart, and could be on track for another red candle this week. The last time it did this was in the middle of the bear market when it fell by 42% within a span of nine weeks.
Japan intervention: Will it work?
Dear Japan Intervenes in the Yen for the first time since November 2022 Will it work? Have we seen a top in USDJPY? Let's go through the charts.