Today's Economic News

Reminder:

It is important to note that the call for shifts of momentum in the hourly timeframe doesnot reflect the overall momentum of markets. What we may find in the intra-day charts are the retracements of the bigger timeframes.

General Market Overview:

Don’t take a rate hike out of the equations and it is very possible. There is no reason to change what is working.

Stocks are down but are at a high quarterly. There is a possibility that this year, we may see a return to normalcy for the stocks. This is impacted by interest rate expectations. The upward momentum we saw has disappeared.

The drop in equities is a healthy part of the cycle. This gives more opportunities to enter at a better price. A drop ofmore than 13% is an average in the economy. This is not worrying.           

There’s a tremendous amount of wealth created. Unemployment is doing great,and the economy is doing amazingly. However, there is no reason for them to make cuts. If anything, we might see a hike.

The Bank of America CEO answers to inflation and says, “The FED is winning the inflation battle.” And even mentions that they got the economy right on track.

Joe Biden announcedthat he would impose tariffs on Silver and Aluminum coming into the US, this is something to watch as it will affect trade and production.

GOLD - While there may be a range happening on the GOLD markets, there is no cause for a shift in our callout as a healthy trend up still exists. We are still supported by the hourly structure at 2365.743 and we shall wait for markets to move accordingly. If the price does move lower, we would have a better price to enter longs before markets continue to run.

SILVER -The prices are creating a squeeze for the silver, creating equal lowsand lower highs, while maintaining a range between two hourly structures at 28.073 and 29.018. There is no reason for us to change our call on this market but, it would be wise to keep a lookout on how it would turn out.

DXY - The dollar weakens as inflation insight betters and interest rate expectations come into play. The slide came with the drop inthe 10Y Bond yields as it closed on a -1.72% yesterday. The shift in momentary momentum in the hourly chart can be called aprice breakingthrough the structure at 106.030. If the price starts to break below 105.840, we can find a deeper retracement in price before a continuation. But the drop can continuefrom here on out for a couple of days.

GBPUSD -Momentum for the GBP has slowed considerably as we find prices held up by the 1.24268 hourly structure. While there is no return yet into the monthly range, we continue to call the GBP into the 1.23720 with more variablesfor the price to get a buyback into the range as the pennant failed to call for a break below.

AUDUSD -The AUD also experiencing its fair share of strength as it wins against the USD to test the daily structure at 0.64427 after breaking through the previous hourly structure at 0.64292. A break backinto the daily structure may call for a shift in momentum as we see prices play their part. However, it is also important to note that there is still no shift being called as structures still come effectively in resisting price from further coming up.

NZDUSD - Prices on the NZD are also finding strength as a potential break beyond the hourly structure at 0.59288 exists. However, unless this price breakoccurs, we make no changes to our call as we still see this as part of a retracement in price. A break below the 0.58856 is still not out of the question but the potential for momentum to shift in the hourly chart is very plausible.

EURUSD -The chart has broken through the pennant but toward the other side as the price went beyond the 1.06660. While it is still early to call for a shift in momentum as the hourly structure at 1.06988 still holds to resist the price, there is a possibility for a call above said structures to occur and a return to the daily structure at 1.07240 to happen.

USDJPY - The JPY is recovering as we see a break below the hourly structure at 154.430. A break below the 154.112 may call for a shift in momentum. Until then, we still view the market positively with a recommendation to stay prudent of price turnout as deeper retracements may occur.

USDCHF -Prices havestalled in the hourly chart, causing it to range below the middle point of the channel. Price canfall into the bottom range of the channel. Currently, prices are being held up by the hourly structures at 0.91036 and 0.90743. A drop below these may call for a shift in momentum and, possibly, a deeper retracement before a continuation.

USDCAD -While prices are playing below the daily structure at 1.37881 and the hourly structure at 1.37745, the price movements are not so definite as to call this a shift in momentum. We still have the hourly structure at 1.37261 to support prices up before calling a definite shift and a possibility of returningto the monthly structure at 1.35762.