 Hi, my name is Liam Rowe currency trader and trading coach at trading 180 comma welcome to this week's supply and demand forex and gold fundamental and technical analysis If you're a new one welcome to you, and if you're returning an equally one welcome to you And this will be the last analysis Sunday analysis video for the year. I wish you a Really Merry Christmas if you're celebrating and a happy new year I will be returning in the new year as well as reopening the mentoring Trading 180 mentoring so if you are interested in starting off the new year In the mentoring group and really learning about fundamental and technical analysis Supply and demand processes then head to the trading 180 site and you can see when we are about to open up the Mentoring for a limited time only as well for many of you who have been waiting for a few months You'll know that I'm really kind of serious about this and I don't take any in anybody There are going to be quite there is going to be criteria that you need to pass in order to get into the room as I am Not going to take on, you know, brand new traders who don't really know how to, you know, trade at the minute so so yeah head over to trading 180 comm if you're interested and the Mentoring will start within the within new year thing about the 5th of January. Anyways, I'm going to get into Gonna be a short one this week simply because there's really not that much to talk about on other pairs I'll cover the main pairs and and yeah, let's get into it. So starting off on the dollar index and The dollar index last week's analysis Pretty much still on the chart. I forgot to get rid of this but Nothing's really changed from last week on the dollar index and the dollar index is just a measure of dollar strength Against major currencies like the euro the pound and the yen and we are you know, we've been really kind of the money's been made trending And price discovery and now we're really between this supply and demand zone Where prices are now just I guess you wouldn't call it ranging but it's really a fair value between buyers and sellers so Pretty much for the rest of the year we're probably going to be Traders are pretty much taking that the time off to Christmas off So not to say that the prices won't move from here, you know, they could move, you know higher or lower But it's not really gonna matter the real trading is gonna start to take place in the new year So just be careful with low liquidity because the market can be easily moved and manipulated and As it searches for liquidity, but Going into 2022 my really bias is to the Is to the upside with the dollar so any pullbacks, you know that that happen over the next a week or two or a couple of weeks Looking for buying By trades and again, we don't buy necessarily on the dollar index It's really looking at this as confluence and if prices do come down to any kind of demand zones then we're looking at dollar crosses as As by trade so to kind of confirm that as well Just an article on pounds sterling live euro dollar Well as far go forecast dollar strength in 2022 and 2023 and I have to agree as Fundamental analysis is the same as my own so the dollars run of strength that saw it dominate global FX markets in 2021 is not set to end soon according to one of the One of the largest lenders in the United States Well as far go say they anticipate further dollar strength in 2022 and 2023 suggesting a long cyclical upturn For the currency is under ways of forecast for the year ahead show the dollars rallied will push the euro dollar exchange rate to To to below the 110s and we'll get to the euro dollar Targets in a second the technicals so within a sorcery with the Fed having started the tapering of its bond purchases Which is generally positive for a currency and expected to raise rates Beginning in the second half of the year of next year, which is again should be also Appreciate the dollar given our revised outlook for federal reserve monetary policy out outlook for the US dollar has also evolved says Nick Brennan Borwick International Economist at Wells Fargo So we now expect an extended period of US dollar strength and see broad-based Greenback strength throughout late 2023 compared to our previous forecast that the US dollar strength would only last into the early part of 2022 so Again the smartest guys in the room giving you the analysis that you know their forecast on what they think It doesn't mean that obviously we're gonna see you know dollar strength and just keep going to the heavens Right, you're gonna get pullbacks pullbacks a bargain prices If you think the dollar is gonna go higher then you don't really want to be a buyer at the high Do you want to wait for pullbacks and then look for to buy the dollar for cheap? So that's pretty much what we're looking to do with the dollar one looking to do with dollar anyways So again, not really going to be trading over Christmas or anything like that But we're just waiting for prices to kind of come down to certain areas And then look for buying opportunities Looking at the dollar yen dollar yen Again similar thing here. So we've got really some demand From there and the demand zone right there and prices did kind of come down to that zone as well So let's put that here in here. So there's some demand right there as well demand zone But I think any kind of major pullbacks in fact I'll just delete that matter fact because prices did come down to this demand zone here. So Any real pullbacks into that zone? I think are really going to be nice zones and even more so if you can get that one 112 what's it a 111 50 Area of prices can drift down to here. I think the beginning of 2022 That's going to be really really nice for some dollar potential upside But again, if we do get some risk off sentiment at the moment, we haven't really got a strong supply zone here I think you'd have to really wait for prices to come up to that 115 high And then looking for any kind of short trades if we do get more of a spread of the Omicron variant or Or COVID-19 Starts to really kind of get out of hand Moving on to and I'm going to skip the dollar Swiss and the dollar CAD nothing really has changed from last week So if you want to see the analysis from last week, you can look towards Go on the YouTube channel and look at last week's analysis I'm gonna focus on really just the majors the pound and the dollar make this a bit of a short one so pound analysis Again, I was saying that last week that this was an area that I thought would see the The pound, you know, would be a really nice area to kind of short the pound from and If you're looking at getting short and I was actually right so looking at that you got, you know Support there bit of resistance, but again, it's more about the supply there with support resistance it's confluence surprise is pretty much pinged off of that area there and Went to the downside even though even though the Bank of England, you know, basically Had a surprise rate hike so the UK decision follows Hawkes Fed Moves signaling tightening and most economists anticipated no change from the Bank of England on Thursday But they surprised everybody by hiking rates, which was again, I said a massive surprise now I was speaking in the members group that generally nine times out of ten A rate hike is generally bullish or appreciates a currency But in this one, it's a bit of a strange one simply because their hiking rates more out more because of it to try and cap inflation rather than out of necessity and I guess because they're trying to You know, maybe with the economy's help. So what you need is a growing economy to help support Rate hikes and at the moment the the UK economy isn't doing fantastic So in fact a rate hike could potentially could actually potentially hurt the the the UK economy although that remains to be seen It might be known as what is known as the dovish hike. So We did see something like that this week. I did say to the guys wait Don't buy don't foam we're in and look at what happened, you know on the on the pound dollar You know, a lot people probably looking to get long on here and now I've been caught on the wrong side of the market. So So, yeah, that's that's pretty much what's happened and Yeah, technically really nice to get short on don't know whether anyone would have got short there You know fundamentally, but again, technically you did see that happen again. We're probably gonna see prices Still, you know, pretty remain within this 1.33 level to 1.3 150 area and I think that said the trading is kind of coming to an end this year. So The next couple of weeks are probably going to be You know, again more of a sideways moving market with potential manipulations here and there So just be careful when trading Any of these currency pairs and I think if I was looking to take a trade on this currency pair Probably be more to the short sides I'll probably say that area there unless and less the pound unless the pound really GDP does growth domestic product does really kind of turn around then I'll probably be long on the pound But until that happens, I think for now I would probably look for potential short trade You know in and around this area here this one three four Area or maybe on a lower time frame for those of you who know about stop hunts Somewhere around this area here would be a decent area for to look for a potential stop hunt And finally looking at the euro dollar so the euro dollar again Part of these resistance is to the downside. So we've had, you know, this level touch once twice three times Again, we know again the euro dollar targets potentially are the 111 so 111 is right is around here So there's potential, you know 100 or 150 pips potentially to the downside. I'm not saying it's gonna go there now It could obviously pop up this year come up to this area here and then come to the downside nobody knows the exact timing of the market but The way that you know, we look to trade is just to look for pullbacks and look for bargain prices because the dollar was a bargain Right here. We know that for a fact good prices went to the downside, right? So this is just a pullback and looking for any kind of short trades My preference would be for you know anywhere around this 1450 Area if we're looking at daily supply zones to get short into the new year So let's see what happens there not looking to buy the euro anytime soon So so yeah, that's pretty much it for this week And I was short one and I were some of you guys wanted to see maybe some of the other currency I normally analyze but again go over last week's Analysis not much has really changed from last week fundamentally or technically So that's pretty much me for the year wishing you all again Merry Christmas and a happy new year And I look forward to working with all of the guys that are looking to join the group next year Have a great Have a great Christmas and New Year's and I'll speak to you all soon. Take care