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Daily Market Comment – Dollar and equities roar as Biden promises fresh stimulus

Posted on January 11, 2021 at 10:27 am GMT

President-elect Biden pledges new relief package worth ‘trillions’ Stocks hit new records, dollar comes back to life, gold purged Is the market now trading the ‘growth narrative’ instead of ‘reflation’? Reflation or growth trade? It matters for USD Hopes that the Biden administration will unleash a federal spending spree came to fruition late last week, after the incoming US President pledged a new relief package in the ‘trillions of dollars’ to revitalize the American economy. The details of this plan [..]

Technical Analysis – AUDUSD bounces off 23.6% Fibo; bullish in medium term

Posted on January 11, 2021 at 9:45 am GMT

AUDUSD has rebounded on the 23.6% Fibonacci retracement level of the upward move from 0.7254 to 0.7820 at 0.7688 after the selling interest from the 22-month high of 0.7820. According to the technical indicators, the RSI is sloping up in the bearish zone, however, the MACD is hitting the zero level below its trigger line. Should the pair manage to strengthen its positive momentum, the next resistance could come around the 40-period simple moving average (SMA) at 0.7735 before resting [..]

Technical Analysis – Gold leans to the bearish side again; 200-day SMA in focus

Posted on January 11, 2021 at 8:58 am GMT

Gold came under severe selling pressure on Friday, slumping below a steep ascending trendline and back into the descending channel. The sharp-sell off saw another extension towards a six-week low of 1,817 early on Monday, but the precious metal managed to recoup its intraday losses and climb back above its 200-day simple moving average (SMA) and to the 1,850 level. From a technical perspective, the bears could dominate in the short run as the recent decline in the price drove [..]

Technical Analysis – EURUSD takes a hit but bullish structure endures

Posted on January 11, 2021 at 8:30 am GMT

EURUSD is sustaining a negative tone today after plotting two bearish daily candles off of a 32½-month peak of 1.2349. In spite of the convincing pullback, which is proposing a deeper retracement, the predominant simple moving averages (SMAs) are continuing to protect the positive picture. The Ichimoku lines with the clear dip in the red Tenkan-sen line are suggesting a slowing pace in positive price action, while the short-term indicators are portraying a surge in negative momentum. The MACD, some [..]

Technical Analysis – USDJPY rises to 1-month high after rebound on 10-month low

Posted on January 11, 2021 at 8:01 am GMT

USDJPY has advanced considerably since roughly the beginning of the year, hitting a one-month high of 104.22 earlier today, but currently posting some losses. Looking at momentum indicators, the RSI is lacking direction slightly below the overbought territory, suggesting that the market could retreat a bit in the very short-term. The MACD also supports this view as it is flattening above its trigger line in the positive area. In the wake of negative pressures, the market could meet support at [..]

Technical Analysis – NZDUSD stumbles but upside risks remain intact

Posted on January 8, 2021 at 1:45 pm GMT

NZDUSD is currently tracing the mid-Bollinger band in the four-hour chart after a slight pullback from the recently plotted 32½-month peak of 0.7314. Despite the small retracement in the pair, the commanding simple moving averages (SMAs) are backing the predominant bullish picture. The short-term oscillators are reflecting conflicting signals in directional momentum, though are leaning somewhat to the upside. The MACD remains in the positive region but has plunged some distance below its red trigger line, while the RSI is [..]

Technical Analysis – GBPUSD positively skewed despite recent consolidation

Posted on January 8, 2021 at 12:00 pm GMT

GBPUSD is consolidating into the Ichimoku cloud after its recent retreat from the newly formed 32-month peak. The bias still seems to be favouring the upside although positive momentum is looking somewhat strained. Furthermore, the commanding bullish simple moving averages (SMAs) are overall preserving the positive structure in spite of the minor stalling in the 50-period SMA. The short-term technical oscillators are transmitting signals of growing bullish sentiment, promoting an optimistic outcome. The MACD is marginally below its red trigger [..]

Technical Analysis – US 30 index begins new year with new record highs

Posted on January 8, 2021 at 10:29 am GMT

The US 30 stock index (Cash) is edging north, standing around the fresh record high of 31,252.85. The MACD, in the positive region, is holding near its trigger line, while the RSI is extending its move towards the overbought territory. The bullish 50- and 100-day simple moving averages (SMAs) could boost the price, sending the index to new uncharted peaks. In a bullish scenario, immediate resistance may develop from the 32,000 and 33,000 psychological numbers before meeting the 261.8% Fibonacci [..]

Technical Analysis – GBPAUD shapes floor around December’s low; 20-SMA eyed

Posted on January 8, 2021 at 10:05 am GMT

GBPAUD is heading for another battle with the 20-period simple moving average (SMA) in the four-hour chart after failing to close below December’s trough despite sliding to a fresh 2-year low of 1.7413. Although in the bearish territory, the RSI and the MACD continue to make higher lows towards their neutral marks, endorsing any potential upside correction in the price. Nevertheless, only a close above the 20-period SMA currently at 1.7500, and more importantly above the swing high of 1.7560, could [..]

Technical Analysis – AUDJPY bulls encounter long-term resistance line

Posted on January 8, 2021 at 8:56 am GMT

AUDJPY gathered additional positive traction towards a fresh two-year high on Friday after closing above the 79.00 mark, where the 200 simple moving average (SMA) is located in the weekly chart. While the bullish market structure and the upward direction in the RSI and the red Tenkan-sen line hold the short-term bias on the positive side, the bulls may need to push harder to surpass the support-turned-resistance line stretched from August 2019. A step above the resistance line currently at 80.90 could [..]

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