🔰 Currency Pair: DXY
🔰 Time Frame: 4-Hour
🔰 Scale Type: Small/Mid-Scale
🔰 Direction: Long/Buy
📈 Greetings, fellow traders. Let us engage in a comprehensive technical analysis concerning the DXY:
Approaching the matter strictly from a technical perspective, it becomes evident that the DXY has been tracing a bullish Gartley pattern over an extended duration. Having already achieved the targeted range of 62-79% in relation to the XA leg, the subsequent objectives within the 127%-162% range come into focus. This analysis serves as an insightful note for those trading USD pairs or Gold; the bullish momentum in DXY persists. Nevertheless, our team emphasise the importance of maintaining a prudent watch on the correlation that exists, notably the US yields rate, as it serves as a pivotal driver impacting the trajectory of gold prices.
Your diligent attention to these interrelated factors will contribute to a more robust trading perspective.
🔰 Time Frame: 4-Hour
🔰 Scale Type: Small/Mid-Scale
🔰 Direction: Long/Buy
📈 Greetings, fellow traders. Let us engage in a comprehensive technical analysis concerning the DXY:
Approaching the matter strictly from a technical perspective, it becomes evident that the DXY has been tracing a bullish Gartley pattern over an extended duration. Having already achieved the targeted range of 62-79% in relation to the XA leg, the subsequent objectives within the 127%-162% range come into focus. This analysis serves as an insightful note for those trading USD pairs or Gold; the bullish momentum in DXY persists. Nevertheless, our team emphasise the importance of maintaining a prudent watch on the correlation that exists, notably the US yields rate, as it serves as a pivotal driver impacting the trajectory of gold prices.
Your diligent attention to these interrelated factors will contribute to a more robust trading perspective.
Trade active
Today's release of the Fed's FOMC minutes, a 10-page PDF, has unveiled a crucial focal point: the Federal Reserve (the Fed) is showing heightened concern over inflationary pressures. 📊💹
Inflation Concerns: The text consistently underscores that inflation remains elevated, well beyond the Fed's 2% target. Participants are resolute in their commitment to reining in inflation to the 2% benchmark, implying their view that elevated inflation looms as a significant challenge. 📈💰📉
Rate Hike Decision: The Committee has opted to lift the federal funds rate target range to 5¼ to 5½ percent. This strategic move aims to sustain the tightening of monetary policy, fostering equilibrium between demand and supply within the economy to restore price stability. ⚖️🏦💱
Balancing Policy: Delving into the delicate balance between avoiding excessive policy tightening and the potential costs of insufficient tightening, the Committee acknowledges the imperative of striking the right chord to tackle both inflation and economic growth head-on. ⚖️📈📉
Upside Risks to Inflation: Notably, participants generally concur on the existence of substantial upside risks to inflation. This stance suggests a readiness to take further measures to preempt the ascent of inflationary pressures. ⬆️🔝📈
Data-Dependent Approach: The Committee underscores its responsiveness to incoming data and its subsequent influence on the economic outlook, inflation, and potential risks. This underscores the adaptive, data-driven strategy in shaping future policy decisions. 📊🔍📉
Ongoing Assessment: The Committee's roadmap entails scrutinizing additional data in the upcoming months to ascertain the degree of policy tightening requisite for steering inflation back to the 2% target over time. 🔄📆💹
Commitment to Communication: A resolute commitment to effective communication underscores the Committee's data-driven approach and unyielding dedication to achieving the inflation objective. 📢📋💬
In conclusion, the released information strongly indicates that the Fed is earnestly contemplating further interest rate hikes to address the pressing concerns surrounding inflation. However, it's vital to acknowledge the intricate interplay of economic and financial variables that influence monetary policy decisions. The Fed's course of action hinges on the dynamic evolution of economic conditions and incoming data. 🏦💡📊