Article by: ETO Markets

The US economy's resiliency is driving markets to reposition their bets on the Federal Reserve, which has resulted in a USD rebound that is driving down metal prices. Soft US Personal Consumption Expenditures data from December on Friday prevented a big move in the market's expectations for the Fed's meeting next week. As of right now, markets moved the beginning of the easing cycle from March to May, but the Fed's comments could alter those projections.

Technical indicators on the daily chart reveal that the price is still above the 100- and 200-DMAs even though the RSI is sloping downward and is currently in negative territory. In the longer term, this indicates bullish position, and the current decline may have been caused by the bulls taking a rest after driving the price to a high of $… in December.

When looking closer at the smaller four-hour chart, the momentum indicators show some faint but noticeable bullish overtones. The four-hour Moving Average Convergence Divergence is still producing flat bars, indicating a hold on bearish momentum, while the four-hour RSI exhibits a negative slope but is now in positive territory.