US2Y Technical Analysis
The 2-year yield continues to be very strong at the moment as we are within 24 hours or so of the Federal Reserve making an interest rate decision and having a press conference that could give us the tone for the next several weeks, if not months, of what’s going to happen with the U.S. dollar and yields.
That being said, keep in mind that the energy situation out there continues to be an issue, and energy inflation is something that the Federal Reserve cannot control. As a result, this looks like a scenario that might get worse before it gets better. Rising rates will have a major influence on how markets trade in general.
GBP/USD Technical Analysis
One currency pair that I’ll be watching today is the British pound against the U.S. dollar, and that’s because this is one of the few places where a currency yields more than the dollar. It’s not a lot more, but it means it holds up.
It looks like buyers are coming in on the dip today. I’m willing to do the same. I’m not looking for a major move; I’m looking for a day trade. I like the idea of buying pounds when the U.S. dollar maybe gives back a little bit.
We’ll see the 10-year yield starting to pull back from the 5% level. That might give us a little bit of relief in the short term. That being said, on Wednesday, I would anticipate a lot of volatility.
Copper Technical Analysis
Copper is a place that I’m very interested in. The long-term uptrend makes a lot of sense due to a lack of supply and certainly expanding demand. We are starting to cross over on the stochastic oscillator. We have seen a significant sell-off, and despite the brutality of the selling over the last couple of trading sessions, the reality is we’re still very much in an uptrend, and that has not changed. I am looking to go long on copper today.
Bitcoin Price Forecast
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Bitcoin is also on my radar right now. We’ve been consolidating, and it doesn’t seem like we’re picking up any more momentum. So, with the rising yields in the United States, I’m starting to wonder whether or not we get some type of deep correction.
I’ll be watching the $76,500 level. If the market breaks below there, I do think a correction to $72,000 and then possibly $68,000 would be possible. On the other hand, if we bounce from here, then I think we just stay in the same range we’ve been trading in for the last 3 weeks or so.