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USDX
Another day, another headline driven whipsaw leaves USDX CONSOLIDATING.
Using USDX as a EURUSD proxy (57.6% of the index) indicates it would need to break 1.1602 (2-day double bottom) for 98.59 to be broken for a run at 98.87.
On the other side, 98.12 coincides with the EURUSD intra-day high at 1.1660.
USDX 4 HOUR CHART
ETHUSD – Ethereum
Ether currently trying to avoid a dive towards 3865.00, but it might prove futile.
Resistances waiting for it above the head: 4460.00, 4505.00 & 4580.00
Supports: 4310.00, 4050.00 & 3865.00
4460.00 is now Intraday level of decision – if above Ether might reach around 4545.00, but if it fails we should see a new low today.
Intraday mode – Sideways to up
Using my platform as a HEATMAP shows,,,
.. the dollar is trading down but off earlier lows that followed President Trump‘s post firing Fed Governor Cook, which was the followed by her refusal to step down.
Only currency down is NZD (marginally)
On order of strength vs the USD
1. JPY
2. EUR
3. GBP
4. CAD
5. AUD
6. CHF
7. NZD
Trump vs Cook
Trump
“Pursuant to my authority under Article Il of the Constitution of the United States and the Federal Reserve Act of 1913, as amended, you are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately,”
Cook
“President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” Cook said, according to multiple outlets. “I will not resign. I will continue to carry out my duties to help the American economy as I have been doing since 2022.”
Bitcoin, Ethereum, Cardano Drop Again. Why Cryptos Are Slumping.
Bitcoin and other cryptocurrencies were dropping again on Tuesday, extending a poor recent run for digital assets.The world’s largest token was down 1% to $110,347 over the past 24 hours, according to data from CoinDesk. It’s now trading 13% off the record price it hit earlier this month.
Other cryptos were also sliding. Cardano slipped 3.2%, Ethereum fell 4%, Solana dropped 5.2%, and XRP was down 0.8% over the past 24 hours, per data from the Kraken crypto exchange.
Digital-asset investors have pivoted out of Bitcoin and into Ethereum in recent weeks, with the latter token hitting a new high on Sunday after Federal Reserve Chair Jerome Powell signaled that the central bank could soon cut interest rates.
Ethereum prices have slid since then due to traders taking profit, but “even after the pullback, liquidity and volumes remain supportive,” Kaiko analysts said in a research note on Monday.
Still, investors will be hoping a new Bitcoin catalyst emerges soon. The token didn’t bounce much after Powell’s speech in Jackson Hole, even though stocks rallied on the prospect of lower rates. Risk assets tend to benefit when borrowing costs fall, because they have more relative appeal compared with interest-yielding investments such as bonds.
BTCUSD Chart
DAX Down for 2nd Day
The DAX in Frankfurt fell 0.8% to trade below 24,100 on Tuesday, marking a second consecutive decline as it tracked losses across European markets amid ongoing political turmoil in France.French Prime Minister François Bayrou warned about the country’s debt problems as he called for a confidence vote in the National Assembly on September 8.
Opposition parties—including the far-right National Rally, France Unbowed, and the Greens—said they would not back the vote, raising the risk of the government’s collapse and increasing political instability.
At the same time, investors weighed more Trump’s tariff threats and ongoing geopolitical uncertainties.
UK Stocks Snaps 5-Day Winning Run
The FTSE 100 slipped around 0.7% to 9,260 on Tuesday as markets reopened for a holiday-shortened week.The decline ended a five-day winning streak that had pushed the index to record highs for four consecutive sessions.
Losses were led by retailers, food & drink producers and financials.
Primark owner AB Foods is bottom of the list, down nearly 4%, followed by B&Q owner Kingfisher, Coca-Cola HB, Prudential, Weir Group and NatWest. British American Tobacco was also among the worst performers, falling more than 2% after announcing the immediate departure of finance chief Soraya Benchikh.
FTSE Chart
XAU/USD: Gold Reverses from 2-Week High at $3,390 Amid Flurry of News — What’s Happening?
Key points:· Gold prices seesaw Tuesday
· Gold bugs price in Fed risks
· PCE inflation looms Friday
Precious metal shot up but took a dive early Tuesday, erasing about $20 from its intraday peak after Trump said on socials he’s fired a top Fed figure. The greenback got involved, too.
Fed Drama Propels Gold… Briefly
Gold XAUUSD kicked off Tuesday trading riding a rollercoaster with its passengers (gold bugs) scrambling to hold on to the rails and figure out what’s happening.
The precious metal touched a two-week high right under $3,390 per ounce before erasing most of its session gains. Political drama collided with central bank chatter and a choppy US dollar.
Gold initially rallied as the greenback weakened after President Donald Trump said he had fired Federal Reserve governor Lisa Cook. Safe-haven bids picked up as traders braced for potential institutional instability.
Reversal Kicks In as Dollar Recovers
In a Truth Social post, Trump published Cook’s termination letter, citing “sufficient reason” linked to alleged false statements on mortgage agreements. But Cook swiftly denied the claims, saying Trump “has no authority to fire me.”
Under US law, a president can only remove a Fed governor for cause — and even then, it’s subject to judicial review.
Traders quickly reassessed the situation, pricing out some of the fear premium that had driven bullion higher. Hence, gold prices swung back to where they came from.
Up to Speed
Last Friday, Fed Chair Jerome Powell hinted at the possibility of a September rate cut, citing growing risks to the labor market. However, he stressed that inflation remains a threat and any decision would be data-dependent.
Lower interest rates typically support gold by reducing its opportunity cost relative to yield-bearing assets like bonds. That’s why markets are watching upcoming economic data closely.
The next big catalyst is Friday’s Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge. A softer reading could reignite rate-cut bets and potentially give gold a fresh push above resistance at $3,400.
Weak dollar selling the signal this month-end – Barclays
Barclays’ month-end rebalancing model is indicating weak dollar selling against most major currencies, while remaining neutral against the euro and yen. Of note, US bonds and equities are the bigger drivers of flows as opposed to the Jackson Hole communication pivot last week.
“Overall, both US bonds and equities have registered marginal month to date gains, with the large market cap in the latter dominating our month-end model and inducing a weak dollar-selling signal against most majors.”
The euro and yen are facing a more neutral bias though, amid relative outperformance in European and Japanese bond markets helping to offset the weak selling pressure on the dollar, according to Barclays.
USDCAD Chart
Trump Dismisses Fed’s Cook, Threatening Fed Independence
Trump’s removal of Fed Gov. Lisa Cook from her post is in line with his aim of pressuring the central bank to cut rates, Maybank analysts say. However, the threatening the Fed’s independence will almost certainly have other consequences, they write in a note. Despite the dollar finding some support on Monday, recovering from the post-Jackson Hole selloff, the greenback is now weaker after the news of Cook’s dismissal. Any further efforts to undermine the Fed’s autonomy would be negative for the greenback, the analysts reckon. With recent remarks from Fed officials sounding more dovish, it is perhaps a tad surprising that Trump would feel the need to keep pressuring for cuts, they add. The DXY index is last down 0.08% at 98.37.
DXY Chart
Dollar, US stocks get hit (down) , GOLD up on Trump removing Fed Gov Cook
EURUSD
What should be concerning to bulls is that an almost full retracement of Friday’s surge without anY NEWS.
With all FIBO levels penetrated, it is either a range or test of the downside.
For the move to be fatal, 1.1583-93 would need to be broken.
If 1.16-1.17, then 1.1650 will be the pivotal level.
EURUSD 4 HOUR CHART
Robinhood Markets Inc Stocks – HOOD
Hood is trying to get back into Bullish mode and to continue Up again.
To be able to do so has to go above 111.90
In such a case, target is now moved to 132.00 area
Resistances: 109.85, 111.90 & 117.70
Supports: 105.95, 103.80 & 99.00
However if it fails , road would be open for test of 80.00
Opendoor Technologies Inc. Stocks – OPEN
Open managed to hit upper trend line today at 5.80 – actual high is 5.87
Pattern wise –it should now test supports and consolidate within 3.10 & 4.50
Supports: 4.50, 4.10 & 4.00
As you can see from this chart, Open can fluctuate between 1.85 and 5.80 and never lose Uptrend mode.
But for continuation of it, it should stay above 4.00
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