Markets Analysis

The Dollar and Yen continue to fall, hitting the Ichimoku Kinko Hyo cloud.【February 2, 2024】

February 02, 2024

Markets Analysis

Fundamental Analysis

  • Fed decides to keep interest rates on hold; Chairman Powell rules out early rate cuts
  • Gold rose to $2,054 at one point, but remained around $2,039.
  • U.S. stock indexes have fallen sharply, and high interest rates are expected to continue for some time

Gold Technical Analysis

Analyze the gold daily chart. Gold continues to rise while maintaining its uptrend line. The cloud ceiling price of the Ichimoku Kinko Hyo became a resistance line, and the price fell again. It is currently moving in the clouds and is in a scuffle. Fed Chairman Jerome Powell has ruled out an early rate cut, but has acknowledged that discussions have begun, and no rate hikes are expected.

ADP employment statistics were lower than market expectations, suggesting a slowdown in the US labor market. Therefore, we expect that gold will continue to rise in the medium to long term. We expect the near-term resistance to be at $2,065. We will also be keeping a close eye on the dollar index and will be keeping an eye on this week’s U.S. employment statistics.


Day trading strategy (1 hour)

Analyze the gold hourly chart. $2,039 is a price range that is considered on a monthly basis, and is an important price for this month. Although there is a high probability that the US interest rate will be lowered, the timing of the actual rate cut may be later than expected. Technically, the price is expected to continue rising slightly for some time, following the clouds of the Ichimoku Kinko Hyo.

There is an awareness of the uptrend line, and there is a possibility that there are many buy limits in the first half of $2,030. The RSI is 52, continuing a slightly upward trend.

My day trading policy is to buy on the edge. Entry is in the low $2,030s, settlement is at $2,043, and stop is at $2,027.

support/resistance lines

The support and resistance lines that should be considered from now on are as follows.

$2054…Weekly resistance line

[Gold/1 hour]

Market Sentiment

XAUUSD Sell: 62% Buy: 38%

Today’s important economic indicators

Economic indicators and eventsJapan time
OPEC meeting19:00
EU consumer price index19:00
UK policy interest rate21:00
Comments from the Governor of the Bank of England23:15
US ISM Manufacturing Employment IndexMidnight (00:00)

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.

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