Fed Continues to "Release Hawk", Price Under Pressure

Summary:

The current market view of the Fed's policy is shifting, and the slowdown in interest rate hikes has slowly exited investors' view in the short term.

SELL ETH-USDT

Close Time

CLOSED

1655.00

Entry Price

1604.00

1680.00

2423.56 -18.25 -0.75%

250.0

Pips

Loss

1604.00

1682.64

Exit Price

1655.00

Entry Price

1680.00

Fundamentals

Yesterday, many senior Fed officials continued to "release hawk". Among them, New York Fed President John Williams pointed out that most Fed officials predict that the peak level of interest rates at 5-5.25%, which is reasonable, with interest rates barely into the restrictive region, and restrictive policies are important; Christopher Waller said that it may be necessary to maintain high-interest rate policy longer than expected. Fed Governor Lisa Cook and Minneapolis Fed President also spoke on the same day, and no officials gave dovish signals.

The biggest risk next week is January's U.S. inflation data. In terms of the line items in the CPI, energy prices, which account for the largest share, were up in January; and used car prices, which are a core item, also started to turn upward in January. There is likely an upside risk to the CPI in January; if it continues to rise, then there is a high probability of 3 more rate hikes during the year. That is, June will be the last rate hike and the dollar index may hit the 105 mark.

Technical Analysis

In the daily chart, a small bear candle was seen yesterday. The price decline is not large, but the candlestick pattern turns bearish after a singular bull candle, and there is still a continuous bearish pattern trend. The MACD indicator formed a downward death cross, and the support position below is still around 1604, which is the point to be watched in the short term. ETH-USDT: Fed Continues to "Release Hawk", Price Under Pressure _1

ETH-USDT: Fed Continues to "Release Hawk", Price Under Pressure _1

From the 1-hour chart, today's price was under pressure and then fell in the morning. Although it did not directly break the location of the previous low, the overall trend still returned to weakness. The current price is rebounding and repairing after touching the low support nearby, so whether it can fall and break the low in the European session is the key. Go short when the price retraces to near 1655 today, with a stop loss set above 1680 and a take profit near 1604. ETH-USDT: Fed Continues to "Release Hawk", Price Under Pressure _2

ETH-USDT: Fed Continues to "Release Hawk", Price Under Pressure _2

Trading Recommendations

Trading direction: Short

Entry price: 1655

Target price: 1604

Stop loss: 1680

Support: 1604/1580

Resistance: 1660/1700

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