US indices fall on Trump’s Fed comments – Gold hit all-time highs, again [Video]

Yesterday we saw a huge one-day drop in the US indices like this on the DJIA.

This was purely based on 2 fundamental events.

As I have mentioned many times, I was trading and doing market analysis during the first Trump administration but I never saw anything like this.

Firstly, the big US auto companies have talked about stopping exporting vehicles which affects their share price.

Ford has done it with 125% tariffs in China.

Also, Donald Trump has continued his threats to fire the chair of the Federal Reserve, Jerome Powell.

Investor see this as a threat to the markets and the uncertainty caused a selloff.

Sharp moves like this can often cause other investors to buy the dip as we see today.

This uncertainty has also caused gold to hit another all-time high at $3,500 with no end in sight.

USD is also a victim of the indecision and we can see USDJPY, for example, falling from 151 yen to 140 yen, just this month.

We have to move out to the weekly chart to see prices from early 2022 on EURUSD.

Apart from EURUSD, we see mostly consolidation on EUR pairs which give us range trading opportunities.

For example, on EURJPY we see price action at or near support with the stochastic oscillator heading for oversold.

Last time we were looking at a short opportunity on CHFJPY and look what happened.

Technically, we are getting mixed signals with a bearish MACD but the stochastic oscillator is oversold and has just crossed.

We will keep an eye on this.

Meanwhile, keep an eye on the news.

With tariff uncertainty, the next news item may cause volatility again.