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Daily Market Comment – Can the ECB muster enough firepower to sink the euro?

Posted on December 10, 2020 at 10:06 am GMT

ECB decision the main event today, can policymakers over-deliver? Stock markets retreat from record highs as US stimulus talks stall Pound drops after top-level Brexit meeting yields no breakthrough Gold under pressure too, yet aussie dollar defies cautious mood ECB preview: Sinking the euro won’t be easy The spotlight will fall on the European Central Bank today, which is widely expected to deliver another easing package of around €500bn, likely complemented by more ultra-generous loans to banks. The bad news [..]

Technical Analysis – AUDUSD conveys further hikes; momentum favours upside

Posted on December 10, 2020 at 9:13 am GMT

AUDUSD is pushing up against the near 30-month high of 0.7483 as buyers look to extending the uptrend. Positive momentum is growing in the technical indicators and the rising simple moving averages (SMAs) are preserving the prevailing bullish picture. The short-term oscillators display improving momentum. The MACD, in the positive region, is holding above its static red signal line, while the RSI is flirting with the 70 level. Moreover, advances in price are being endorsed by the stochastic %K line, [..]

Technical Analysis – WTI futures ease near 9-month high; indicators suggest bearish move

Posted on December 10, 2020 at 7:44 am GMT

WTI futures recorded a rally last week towards a nine-month high of 46.76, though, the price is on the backfoot this week and the technical indicators suggest that the market could ease a little bit in the short-term. The RSI is currently increasing negative momentum towards its neutral threshold of 50 after a decline from overbought levels, while the MACD is slowing down in positive territory. Both are hinting that the next move in prices could be on the downside [..]

Technical Analysis – UK 100 index eases slightly but upside risks remain

Posted on December 9, 2020 at 4:17 pm GMT

The UK 100 index (Cash) seems to be fading from its newly formed nine-month high of 6,623 as positive momentum is losing steam. Nevertheless, the simple moving averages (SMAs) are maintaining their bullish tone, preserving the positive structure. That said, the short-term oscillators are suggesting a strengthening of the negative price action. The MACD, in the positive zone, is sliding underneath its red trigger line, while the RSI is falling in bullish territory. Moreover, the stochastic oscillator has adopted a [..]

Technical Analysis – GBPCHF weakens within sideways range

Posted on December 9, 2020 at 4:09 pm GMT

GBPCHF is facing downside pressure as it struggles to hold above the mid-Bollinger band around 1.1915. The pair has been stuck in a neutral phase since late March after it partially recovered from its all-time low of 1.1109. Further declines are likely in the short term as the RSI has dipped just below the 50 neutral level, while the MACD is slightly negative. However, the broader trend of the MACD is positive as it’s been steadily improving over the past [..]

UK recovery stumbles as no-deal Brexit risks spike; pound oblivious – Forex News Preview

Posted on December 9, 2020 at 2:35 pm GMT

Growth data out of the United Kingdom will kick off Thursday’s European session at 07:00 GMT when traders are likely to wake up to fresh Brexit headlines. Prime Minister Boris Johnson is due to travel to Brussels later today to try and salvage a post-Brexit trade agreement with the European Union, with only three weeks to go until the end of the transition period. He is expected to hold talks with European Commission President Ursula von der Leyen over dinner [..]

ECB meeting: Sinking the euro won’t be easy – Forex News Preview

Posted on December 9, 2020 at 1:53 pm GMT

The European Central Bank will conclude its meeting at 12:45 GMT Thursday. Markets widely expect an easing package of around €500bn in QE purchases, likely complemented by more ultra-generous loans to banks. Yet, this move has already been telegraphed and priced in, so if policymakers want to sink the supercharged euro, they need to deliver something larger – which may be difficult. In the bigger picture, the euro will be driven mostly by Brexit and the US stimulus game. Houston, [..]

Technical Analysis – EURGBP’s clear direction curbed as recent gains fade

Posted on December 9, 2020 at 1:16 pm GMT

EURGBP is receding beneath the 50-day simple moving average (SMA) at 0.9012, residing between the converging 100- and 200-day SMAs. The conflicting SMAs seem to be developing a somewhat sideways bearing, promoting the near-term directionless market. The opposing short-term oscillators echo the confusion in directional momentum. The negatively charged stochastic oscillator and the dipping RSI, barely above the 50 mark, are favouring moves to the downside. Yet, the MACD, which is holding above the zero line and its red trigger, [..]

Technical Analysis – EURAUD’s selling interest persists; still bearish

Posted on December 9, 2020 at 1:01 pm GMT

EURAUD has come under renewed selling pressure, falling back below the 23.6% Fibonacci retracement level of the down leg from 1.6826 to 1.6144 and the Ichimoku cloud. The technical indicators are endorsing the negative bias with the stochastic holding in the oversold territory and the MACD is losing momentum beneath its trigger and zero lines. Should prices decline, support could be found around the 1.6144 barrier, identified by the low on November 27. Then a step lower could challenge the [..]

Technical Analysis – NZDUSD restores bullish momentum; uptrend solid and intact

Posted on December 9, 2020 at 11:02 am GMT

NZDUSD pivoted higher early on Wednesday and towards its 32-month top of 0.7100, refusing to abandon the 0.7000 area for the time being. The RSI is also reluctant to exit the overbought zone, suggesting that although the market remains vulnerable to downside corrections, there is still some bullish fuel left in the tank. The upside reversal in the fast-stochastics and the fact that the price continues to fluctuate within the upper Bollinger area is also keeping the short-term bias tilted to the upside. [..]

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