Internals showing AudJpy wants to go over the figure, time will tell. Interestingly the sell cycle in Sterling remains intact but internals are a scorching bid, so either Sterling breaks uphill strongly today or tomorrow and establishes a new buy cycle with higher full figure prints targeting 2900 + or continues to decline toward 2780. Perhaps consider the offer around 2900/10.
XAUUSD 4 HOUR CHART – BOUNCE FROM AMAZING TRADER SUPPORT
I will let this chart do the talking and the uncanny ability of The Amazing Trader to identify key chart levels.
2348 held => 2379 then targeted => 2393 is the key recent high
Yield | 6:54 AM EDT
4.273%
——
Anna Hirtenstein, WSJ:
Powell Set for Second Day of Testimony in Congress
As the Fed chair returns to testify, investors will be listening for further clues on the policy outlook.
Coming up:
Powell’s testimony starts at 10 a.m. ET.
Other Fed officials speaking Wednesday include Michelle Bowman, Austan Goolsbee and Lisa Cook.
A look at the day ahead in U.S. and global markets from Mike Dolan
Even if U.S. inflation remains too irksome for the Federal Reserve to sound the all clear, there’s much less trepidation overseas.
Fed chair Jerome Powell gave little away in Tuesday’s congressional testimony, remaining coy about the timing of a first interest rate cut as the price picture remains murky but also doffing his cap to a softening jobs market.
Morning Bid: Calm markets as China skirts deflation, NZ doves coo
USDJPY 4 HOUR CHART – 162 LOOMS
Look at how the red Amazing Trader lines are dominating as USDJPY enters the 161.50-162.00 nervous zone.
If I was the BoJ I would hope to see a downward surprise to US CPI tomorrow to give USDJPY some breathing room.
Otherwise, 161.50 is clearly pivotal as above it puts 162 in play.
Key level on the downside is at 160.50
Question going forward is whether there is a line in the sand level for the BoJ.
GBPUSD 4 HOUR CHART – WATCH 1.28
Whatever orders were behind the GBPUSD retreat seem to have run their course (look at GBP crosses, including EURGBP which has backed off after .8460 resistance held).
Key levels:
1.2824, above puts the 1.2846 high in play
1.2779, below it extends the retracement
1.2800, sets the tone
HELP anyone ?
Nick Timiraos – chief economics correspondent for The Wall Street Journal – in his Updated July 9, 2024 2:24 pm wsj:
one “that moved the central bank closer to lowering interest rates when he suggested Tuesday that a further cooling in the labor market could be undesirable.”
I have perused, searched and examined cnbc’s 2:13:35 worth of powell’s live video and transcript but could not find nick’s claim (hallucination ?) that Jerome said “that further cooling in the labor market could be undesirable.”
Comments ?
So far it makes me wonder what game nick is playing.
Mark down Monday’s USD lows and see how the market trades if it distances from them… and whether there is a Monday Effect week or not
This is a term I coined to identify a forex trading pattern that I watch out for each week. I call it the Monday Effect and when it plays it, there are usually significant moves in the market. So, you need to be aware of the Monday Effect, which I reveal in the following article…
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