The US dollar index fell sharply on Thursday, with a drop of over 100 points, currently hovering around 104.6. It seems that the market has continued to increase its bets on the Federal Reserve's December rate hike slowing down. Against the backdrop of the decline in the US dollar, gold has risen by nearly 2%, reaching $1800 and is now trading around $1802.

The market continues to digest the dovish speech of the Federal Reserve Chairman

The view expressed by Federal Reserve Chairman Powell early Thursday that the Fed will slow down its rate hike in December has affected the overall trend of the US dollar index. The market believes that the Federal Reserve will raise interest rates by 50 basis points and will stop raising rates next year, so US dollar bulls accelerated their exits, while bears increased their positions. Especially against the backdrop of the continuous decline in crude oil prices, inflation expectations in the United States have become increasingly limited, which makes it even more reasonable to support the Federal Reserve's gradual achievement of policy goals. Pay attention to the results of US non farm data within the day, and the market volatility will increase at that time.

A50

After yesterday's high opening, the A-share market fluctuated and fell, leaving a gap below. The trend of the intraday sector was divided, and trading volume further amplified. Observing the trend of A50, it is highly consistent with the overall market index, so the short-term A50 index will have a significant impact on the overall market. Due to the high trading volume, the market is still relatively active, and the cyclical trend of the sector will continue. As long as the A50 fluctuates at a high level and does not break through, market sentiment will remain high.

Technically speaking, the first pressure of the A50 is 13000, breakthrough is 13400, support is 12700, and break is around 12500. The indicator shows that the opening of the Bollinger Line is horizontal, and the MACD oscillates around the 0 axis. Trading strategy: Given the importance of the upper and lower positions, it is possible to try high selling and low buying trades, breaking through key support positions and then backtracking orders.

pound

The pound has continued to rise due to the sharp drop in the US dollar index, reaching a high of around 1.23 yesterday and has now fallen back. The factor that affects the market trend this wave is the market's downward prediction of the Fed's interest rate hike on December 15th, so the US dollar factor is crucial. There will be non farm data from the United States within the day, which will affect the trend of the US dollar and also affect the pound. Given the importance of the high pressure of 1.23, whether it can be broken through will depend on the results of evening US data.

Technically, the first pressure on the pound is around 1.23, with a breakthrough around 1.24, support around 1.22, and a break around 1.215. The indicator shows that the opening of the Bollinger Line is upward, and the MACD is at a high level of oscillation. Trading strategy: Given the importance of the upper and lower positions, it is possible to try high selling and low buying trades, breaking through key support positions and then backtracking orders.

gold

Gold has strengthened in the short term due to the impact of the decline in the US dollar index. Currently, market attention is focused on the US dollar factor, and US non farm data will also be released in the evening. Considering the significant short-term increase in gold, there is considerable profit potential for bulls. Therefore, in the face of uncertain risks, the bull offensive may be postponed. Once the news becomes clear, market volatility will increase. This gold trading strategy avoids high chasing and focuses on the position of pullback support.

Technically, there is pressure around $1806 above gold, with a breakthrough around $1820, support around $1793, and a break around $1786. The indicator shows that the opening of the Bollinger Line is upward, and the MACD is at a high level of oscillation. Trading strategy: Given the importance of the upper and lower positions, it is possible to try high selling and low buying trades, breaking through key support positions and then backtracking orders.