News

Daily Market Comment – Virus scare eases but Trump’s stimulus threat tempers mood

Posted on December 23, 2020 at 9:39 am GMT

Equities on firmer footing as panic over new virus strain subsides further But another danger looms as President Trump unhappy with $900 billion stimulus bill Pound’s yo-yo ride continues as hopes rise for pre-Christmas Brexit deal Can Trump scupper Congress’ stimulus aid? Equities were on edge on Wednesday even as investors struck a cautiously optimistic tone ahead of the festive break. President Trump threatened late on Tuesday to block the $900 billion virus relief bill passed by both chambers of [..]

Technical Analysis – USDJPY’s gradual nose-dive continues below falling SMAs

Posted on December 23, 2020 at 9:18 am GMT

USDJPY is in the process of plummeting further testing key troughs and is currently attached beneath the 103.65 level, which happens to be the 76.4% Fibonacci retracement of the up leg from 101.17 to 111.71. Furthermore, the pair maintains a bearish tone below the dictating simple moving averages (SMAs), and a restrictive trend line pulled from the 111.71 peak. The technical indicators are also supporting the dominant negative sentiment. The MACD is holding below its red signal line, some distance [..]

Technical Analysis – Gold weakens despite the bullish picture in short-term

Posted on December 23, 2020 at 9:02 am GMT

Gold has had a bullish tendency in the short-term, climbing to a new six-week high of 1,906 before it slipped below the simple moving averages (SMAs) and the 23.6% Fibonacci retracement level of the up leg from 1,764 to 1,906 at 1,873. The %K and %D lines of the stochastic justify the buying pressure in the very short-term, while in trend indicators, 20- and 40-period SMAs are moving towards the current market price to the downside and the 100-period SMA [..]

Technical Analysis – NZDUSD plummets from 32-month high; bullish outlook intacts

Posted on December 23, 2020 at 7:53 am GMT

NZDUSD has come under renewed selling pressure, falling below the 20-day simple moving average (SMA) and remaining well below the 32-month high of 0.7160. Despite the latest pullback though, the pair has been in a long-term ascending tendency since March 19. The RSI is plunging from the overbought territory, suggesting a downside correction, while the MACD is holding below its trigger line in the positive region. In case the selling interest persists, immediate support could come from the 0.6970 support, [..]

Technical Analysis – USDCAD steadfast, re-targets the 200-MA

Posted on December 22, 2020 at 3:59 pm GMT

USDCAD is headed to retest the 200-period simple moving average (SMA), after finding a foothold on the cloud’s upper surface and the 100-period SMA around 1.2819. The price bounce came after the 200-period SMA curbed the rally, which started from the near 32-month low of 1.2687. The upturn in the 50-period SMA and the slowing downward pace of the 100-period SMA suggest some improvements in positive sentiment, which may well possibly shove the pair into a sideways market below the [..]

Technical Analysis – EURCHF falters but upside risks remain intact

Posted on December 22, 2020 at 2:23 pm GMT

EURCHF appears somewhat skewed to the upside and is currently heading up towards the 1.0847 level, which happens to be the 61.8% Fibonacci retracement of the down leg from 1.1058 until 1.0504. The 200-and 100-day simple moving averages (SMAs) are defending the neutral-to-bullish structure, while the upturn in the 50-day SMA is reflecting growing positive drive. Currently, the short-term oscillators are indicating a pause in improving momentum. The MACD, in the positive section, is holding above its red trigger line, [..]

After US stimulus deal, barrage of US data next on dollar’s radar – Forex NewsPreview

Posted on December 22, 2020 at 1:28 pm GMT

Traders will be bombarded with an avalanche of US economic data on Wednesday after US congressional leaders reached a stimulus agreement on Sunday. Hitting the market at 1330 GMT are durable goods, alongside the personal income and consumption numbers and the all-important core PCE price index. The impact of those data is expected to be overshadowed by political news and Covid-19 headlines. With the dollar enjoying more selling interest, weak data could take the heat off from any stimulus-led rally and offer the dollar some reprieve. US stimulus deal Congressional [..]

Technical Analysis – WTI futures retreat below rising trend line and SMAs

Posted on December 22, 2020 at 10:33 am GMT

WTI crude oil futures are dropping below the short-term ascending trend line, which had been holding since November 2, finding a powerful support at the 100-period simple moving average (SMA) and the lower surface of the Ichimoku cloud. The MACD oscillator is declining below the zero level with weak momentum, while the RSI is ticking slightly up in the negative territory. If the price remains beneath the diagonal line and the SMAs, immediate support could come from the 46.22 level, indicating a [..]

Technical Analysis – GBPUSD preserves the climb despite violent retreat

Posted on December 22, 2020 at 9:30 am GMT

GBPUSD recently logged a 31½-month high of 1.3623 before gapping yesterday below a section of peaks that previously were providing some upside resistance. The aggressive pullback bounced for a second time off the 50-period simple moving average (SMA) and once again returned the pair back above the Ichimoku lines. The price is currently resting above the flattening Ichimoku lines, while the climbing SMAs are defending the advancing picture. The short-term oscillators are reflecting the recent dwindling in the pair. The [..]

Technical Analysis – EURJPY consolidates below 127.00; neutral in short- and medium- term

Posted on December 22, 2020 at 7:41 am GMT

EURJPY is trading with weak directional bias over the last three weeks, while spiking towards the 18-month high of 127.10. The momentum indicators are pointing to a neutral to negative bias in the short term with the RSI just below the 70 suggesting a possible pullback and the MACD is holding below its trigger line in the positive region. In the event of an upside move, the 127.10 resistance could act as a barrier before being able to challenge the 127.50 level, taken from the high in February 2019. [..]

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