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How the pandemic made China stronger – Special Report

Posted on January 12, 2021 at 4:45 pm GMT

The Covid-19 pandemic has stigmatized China as the birthplace of one of most awful diseases in modern history. But it is not all black for the second biggest economy in the world, although challenges remain, as its successful handling of the virus has likely marked another positive quarter in the end of 2020 at a time when new lockdown measures are prolonging growth agonies in the rest of the world. Covid-19, a national pride China’s Communist governing party had a tough year, receiving words [..]

As Biden prepares to take office, what does a Democratic sweep mean for the dollar? – Special Report

Posted on January 12, 2021 at 1:55 pm GMT

It’s only been a couple of weeks since outgoing US President Trump signed a $900 billion stimulus bill into law, but investors already have their sights on another, even bigger fiscal package. The Democrats’ double win in the Georgia runoffs has handed the party control over both houses of Congress, providing President-elect Joe Biden a strong mandate to deliver on his spending pledges. The unexpected victory has sent long-term Treasury yields soaring, as the additional stimulus is likely to significantly [..]

Technical Analysis – EURCHF pulls back off heavy border; progressive picture unbroken

Posted on January 12, 2021 at 1:41 pm GMT

EURCHF has abated to the mid-Bollinger band around 1.0819 after recent attempts to appreciate, including the false break out of 1.0891, were capped by the upper Bollinger band and the tough resistance ceiling of 1.0857-1.0877. The simple moving averages (SMAs) are promoting an overall neutral-to-bullish demeanour in the pair. The short-term oscillators reflect a situation of strained directional momentum but weakly lean towards retaining a somewhat positive tone. The MACD, slightly above the zero mark, is trailing below its red [..]

Technical Analysis – EURCHF ebbs off heavy border; progressive picture unbroken

Posted on January 12, 2021 at 1:05 pm GMT

EURCHF has abated to the mid-Bollinger band around 1.0819 after recent attempts to appreciate, including the false break out of 1.0891, were capped by the upper Bollinger band and the tough resistance ceiling of 1.0857-1.0877. The simple moving averages (SMAs) are promoting an overall neutral-to-bullish demeanour in the pair. The short-term oscillators reflect a situation of strained directional momentum but weakly lean towards somewhat retaining a positive tone. The MACD, slightly above the zero mark, is trailing below its red [..]

US inflation eyed ahead of Biden’s stimulus proposal – Forex News Preview

Posted on January 12, 2021 at 11:48 am GMT

The main event for the dollar and equity markets this week will be the details of incoming President Biden’s stimulus proposal, which will be unveiled Thursday. Before that, the latest CPI data on Wednesday will tell us how inflationary pressures are evolving. This could prove crucial amid speculation around whether the Fed might begin tapering early next year. Overall, markets seem to be transitioning from a ‘reflation’ to a ‘growth’ narrative, and if this shift persists, the latest rebound in [..]

Technical Analysis – USDCAD posts losses in Ichimoku cloud

Posted on January 12, 2021 at 9:43 am GMT

USDCAD posted losses for the second consecutive period, pulling back from the 200-period simple moving average (SMA) around the 1.2835 resistance and is now hovering in the Ichimoku cloud. The RSI in the 4-hour chart is falling further in the positive area, while the MACD is losing some momentum above its trigger and zero lines. However, the red Tenkan-sen is still moving above the blue Kijun-sen line while the 20- and 40-period SMAs created a bullish crossover in the preceding sessions, which is still acting as support. However, should the price close comfortably below the [..]

Technical Analysis – GBPUSD’s retraction unable to tilt appreciation scale

Posted on January 12, 2021 at 9:05 am GMT

GBPUSD continues to echo a positive tone despite recently retreating from a fresh 32-month high of 1.3703. The rising red Tenkan-sen line is suggesting positive momentum is growing, while the flattening blue Kijun-sen line is indicating that the ascent is under stress. Nonetheless, the advancing simple moving averages (SMAs) are defending the bullish picture. Furthermore, the short-term oscillators are conveying a pickup in positive sentiment. The MACD remains some distance above the zero line despite weakening slightly below its red [..]

Technical Analysis – EURJPY bulls take a breather near 2-year high

Posted on January 12, 2021 at 8:29 am GMT

EURJPY geared down after topping near the familiar 127.50 barrier from 2017 – 2018, but the 20-day simple moving average (SMA) slightly lower at 146.47 managed to put some breaks to selling forces, preventing any move towards the key 146.00 support region. Currently, the short-term bias is looking neutral as the red Tenkan-sen line is flattening marginally above the stable blue Kijun-sen and the RSI seems to be stabilizing its downward move slightly above 50. The bears, however, may not [..]

Technical Analysis – WTI futures flirt with 11-month peak; indicators look overbought

Posted on January 12, 2021 at 8:05 am GMT

WTI crude oil futures have reversed higher again reaching a fresh eleven-month high of 52.70, however, the MACD oscillator now suggests that the market sentiment might get worse before getting better. The RSI is approaching the overbought territory, indicating a possible pullback in the very short-term timeframe. If the price manages to move higher again and surpass the eleven-month high of 52.75 it could take the market towards the 54.62 resistance, registered in February 2020. Alternatively, the market might revisit the 20-period simple moving average (SMA) [..]

Technical Analysis – US 500 index looks optimistic despite minor retreat

Posted on January 11, 2021 at 1:58 pm GMT

The US 500 index (Cash) has retracted ever so slightly after stalling around the fresh all-time high of 3,831. Although the Ichimoku lines are revealing the ebbing in positive price action, the bullish demeanour of the simple moving averages (SMAs) is defending the positive structure. The withdrawal in price will have to mature into a deeper retracement to have any significant effect on the upwards drive. The short-term oscillators are transmitting mixed frequencies in directional sentiment. The MACD, in the [..]

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