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US Open Note – Dollar pauses its rally after NFP; oil still up

Posted on February 5, 2021 at 2:05 pm GMT

Dollar steady after NFP report The US dollar lost some ground after the publication of the non-farm payrolls report but is still steady today around 105.50 against the yen, as there’s a good argument that the numbers make a big stimulus package more likely. The US dollar index is moving lower, while US stocks are recording new highs. The US economy added 49K jobs in January, compared to market expectations of a 50K rise and -227K previously, while the unemployment rate declined to 6.3% from 6.7% in the preceding month. US President Joe [..]

Technical Analysis – GBPUSD restores positive tone; bullish in near-term

Posted on February 5, 2021 at 1:59 pm GMT

GBPUSD is recovering above the 50-period simple moving average (SMA) at 1.3686 after the price was violently catapulted from beneath the 200-period SMA at 1.3607. In the broader picture, the price sustains a solid upwards force above the tentative trend line, drawn from the 1.2854 low in November last year. Nonetheless, the directionless Ichimoku lines are reflecting a slightly slowed tempo in the ascent, which struggled to overcome the 1.3745-1.3758 resistance ceiling at the end of January, while the upwards [..]

Technical Analysis – GBPCHF breaks above sideways range but gains look overstretched

Posted on February 5, 2021 at 1:53 pm GMT

GBPCHF has made a decisive break above the sideways range that had been in place since late March of 2020 after several days of flirting with the range top. Having raced above 1.23 to reach the highest in 11 months today, the pair could now have its sights on the 61.8% Fibonacci retracement of the December 2019 – March 2020 downtrend, which lies at 1.2468. Further gains could drive prices towards the 78.6% Fibonacci of 1.2837, which has been a [..]

Daily Market Comment – Vaccine-led rally back on, dollar stands tall

Posted on February 5, 2021 at 10:11 am GMT

Rising hopes that vaccinations will soon bring an end to lockdowns fuel global equities Dollar eases slightly but USD bulls may have already reawakened; NFP eyed Pound jumps after BoE says negative rates not imminent, euro steadies Stocks gripped by normalization hopes Progress in the global vaccination campaign and expectations of more easy money are powering world stock markets to fresh highs on hopes that a return to normality is nearing. A significant drop in new Covid infections in most [..]

Technical Analysis – USDCAD’s advances capped by Ichimoku cloud

Posted on February 5, 2021 at 9:35 am GMT

USDCAD is somewhat consolidating around the 50-day simple moving average (SMA) at 1.2776, as the pair’s efforts to improve are being curbed by the Ichimoku cloud. The Ichimoku lines are reflecting the price’s struggle to gain ground and it appears its bearish demeanour may be bulletproofed by the downward sloping SMAs. Positive momentum in the short-term oscillators seems to be faltering, increasing odds to the downside. The MACD, marginally above its red trigger line has barely peeped above the zero [..]

Technical Analysis – NZDUSD waits for a triangle breakout

Posted on February 5, 2021 at 8:48 am GMT

NZDUSD continues its consolidation phase inside a symmetrical triangle and below the 33-month high of 0.7314. While the price is looking set for another rebound within the formation and near the 50-day simple moving average (SMA), the momentum indicators provide little hope for cheer. The RSI is muted around its 50 neutral mark, and the MACD is gradually diminishing below its red signal line, while the red Tenkan-sen remains flattish slightly below the blue Kijun-sen line. A move above the 20-day SMA [..]

Technical Analysis – US 30 index completes bullish run near record high

Posted on February 5, 2021 at 7:53 am GMT

The US 30 index (Cash) rebounded off the 29,642 support level, posting four straight positive days and climbing above the 20- and 40-day simple moving averages (SMAs). The price is moving towards the record high of 31,284, while the technical indicators are confirming the upside tendency. The RSI is standing in the positive region, while the stochastic is holding in the overbought area, indicating a possible downside retracement. An extension beyond the all-time peak of 31,284 could take the index [..]

Technical Analysis – Gold crashes below 1800, hits to 2-month low

Posted on February 4, 2021 at 4:06 pm GMT

Gold has accelerated its decline, tumbling below the 1800 level on Thursday for the first time in two months. The precious metal is on track for a third straight day of losses but although the momentum indicators remain overwhelmingly bearish, there is a hint of some easing in the selloff in the short term. The RSI has slipped below the 30 oversold level and continues to trend lower. However, the stochastic oscillator is indicating the possibility of a bullish crossover [..]

Technical Analysis – USDJPY extends bullish breakout ahead of nonfarm payrolls

Posted on February 4, 2021 at 2:31 pm GMT

USDJPY continues to build its positive trajectory above the broken descending trendline, registering an almost three-month high of 105.33 on Thursday. There is no key obstacle in sight until the 105.45 – 105.65 region; therefore, expectations are for the rally to see further extension in the near-term as the momentum indicators in the four-hour chart keep promoting the bullish appetite in the market. The RSI has resumed its positive slope, and the MACD is regaining ground below its red signal [..]

US Open Note – Dollar keeps heading higher; pound back to gains after BoE decision

Posted on February 4, 2021 at 1:48 pm GMT

Pound return to gains after BoE decision; Eurozone retail sales come up The key driver of the day is the Bank of England (BoE) interest rate decision. The pound jumped higher, returning above 1.3650 versus the US dollar, as the BoE left its bank rate unchanged at a record low of 0.1% and its bond-buying program unaltered during its meeting. The crucial point is that the BoE said that its actions should not be taken as a signal that negative rates are coming and that has seen a push back [..]

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