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Technical Analysis: Dollar Weakness, Gold's Upward Climb, and Oil's Bullish Outlook

 

Good afternoon, everyone. Today is January 11, 2024, let's take a moment to examine the current state of the forex market. It's important to approach this analysis from a neutral standpoint, observing market trends and movements without advocating specific financial actions.

 

Yesterday's Market Overview

Gold and Crude Oil Movements

Yesterday, gold reached a notable high around 2040. A strategic move was made by entering a short position at approximately 2037. In the case of crude oil, it hit its target after a bullish candlestick formation, leading to a decision to close the long position at the designated area.

These two trades basically met expectations, except that I didn't expect crude oil to drop back last night. If crude oil drops to this area and consolidates, it would be better, but the drop was a bit deep.

Market Dynamics

The main activities in the market were centered around gold and crude oil. The unexpected drop in crude oil prices last night was notable, although it did not align with initial expectations.

 

Today's Market Focus

Anticipating CPI Data Release

Today, the market's attention is drawn towards the upcoming CPI data release. The anticipation of this data suggests potential pressure on the US dollar, which could, in turn, influence the gold market, particularly against the US dollar. The forecast is leaning towards a decline in the CPI, which might trigger a reaction from the Federal Reserve. This kind of CPI movement is likely to be bullish for gold against the US dollar. Therefore, today's focus should be on the US dollar.

 

Technical Analysis

US Dollar Trend

 

Technical Analysis: Dollar Weakness, Gold's Upward Climb, and Oil's Bullish Outlook

 

Currently, the US dollar shows a downward trend, marked by a recent period of consolidation. This pattern, coupled with tonight's CPI data, suggests that the dollar's rebound phase might be concluding, indicating a continuation of the downward trend.

Looking at the four-hour chart in the same way, it is highly probable that the price will continue to move downward from this position. This is the current situation for the US dollar.

Gold's Potential Rise

Examining gold's daily chart reveals a steady upward movement from a recent low point, hinting at continued growth. With today's critical data release, there's a strong possibility of gold maintaining its upward trajectory, potentially marked by a significant bullish candle.

Oil Market

The oil market displays a pattern of uncertainty, with recent fluctuations suggesting potential directional moves. The medium to long-term outlook appears bullish, with targets around 80-85.

In light of today's market conditions and the anticipated data release, the focus is on potential long positions in gold, targeting around 2928. It's crucial to observe these market trends and make informed decisions based on current market dynamics.

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“When considering “CFDs” for trading and price predictions, remember that trading CFDs involves a significant risk and could result in capital loss. Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be considered investment advice.”

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