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Daily Market Comment – Dollar holds firm after gains as stimulus eyed; Reddit frenzy eases

Posted on February 2, 2021 at 10:06 am GMT

Dollar approaches 2-month top as stimulus hopes push up yields, euro falters Stocks rise again as Wall Street rebounds, retail craze cools, silver plunges Aussie bounces back, shrugs off surprise QE boost by RBA A dollar comeback? The US dollar appears to be on the rise again, mirroring a similar upward drive in 10-year Treasury yields in recent days. Expectations that the United States is moving closer to another big stimulus package lifted the greenback to near 2-month highs against [..]

Technical Analysis – GBPUSD bullish, but minor pullback freezes advances

Posted on February 2, 2021 at 9:20 am GMT

GBPUSD is stalling around the red Tenkan-sen line at 1.3677, after a small retreat from the recently reached multi-year high of 1.3758. Nevertheless, the bullish Ichimoku lines are portraying growing positive momentum, while the steadfast simple moving averages (SMAs) are all backing the firm broader uptrend. The short-term oscillators are conveying mixed signals in directional momentum but appear to favour an optimistic outcome. The MACD, some distance above zero, is floating beneath its flattening red trigger line, while the upwards [..]

Technical Analysis – USDCHF aims to end falling trend; eyes on 0.9015

Posted on February 2, 2021 at 8:41 am GMT

USDCHF charted an inverse head and shoulder formation at the bottom of its sell-off, where a six-year low of 0.8756 has taken the form of a bullish doji in early January, signalling the end of the bearish phase. The case of a trend reversal further strengthened on Monday after the price closed clearly above the neckline of the structure at 0.8920. The RSI and the MACD are backing the bullish appetite in the market as well, with the former gaining [..]

Technical Analysis – EURJPY stands above flat SMAs; bullish in long term

Posted on February 2, 2021 at 7:59 am GMT

EURJPY seems to be range bound, something also reflected in the flattening out of the slopes of the 20- and 40-day simple moving averages (SMAs). The directionless Ichimoku lines and the steadied cloud further reflect this view. That said, the short-term oscillators, although somewhat stalled, still lean towards a positive picture. The MACD, in the positive region, is holding above its trigger line, while the RSI hovers in bullish territory. If buying interest intensifies, resistance may originate from the eleven-month high of [..]

Euro could shrug off Q4 GDP growth data – Forex News Preview

Posted on February 1, 2021 at 5:06 pm GMT

Eurozone will publish its first GDP estimates for the last quarter of 2020 on Tuesday at 10:00 GMT and undoubtedly the results will be negative given the extended lockdown restrictions during that period. As for the euro, the vaccine rollout, and more recently the ECB’s discussions over its strength seem to be the catalyst behind its recent weakness. Hence, unless there are updates on these fronts, this week’s data could do little to move the euro. Q4 GDP data may [..]

Technical Analysis – US 500 index’s bounce on cloud may reinforce uptrend

Posted on February 1, 2021 at 2:13 pm GMT

The US 500 index (Cash) appears to be finding some footing off the upper surface of the Ichimoku cloud after its withdrawal from the all-time high of 3,867. Although the dipping red Tenkan-sen line is feeding negative price action, the climbing simple moving averages (SMAs) are safeguarding the ascent. For the retraction to begin to undermine positive belief, the pair would have to recede towards the 100-day SMA at 3,576. The short-term oscillators are reflecting conflicting signals in directional momentum. [..]

US Open Note – Dollar advances higher, euro dips

Posted on February 1, 2021 at 1:56 pm GMT

Next US relief bill still in focus; Dollar and silver surge One of the major highlights of the current week is the effort to pass the next relief bill in the US. Ten Republican Senators have drawn up a $600 billion alternative to President Biden’s $1.9 trillion proposal. The dollar index is 0.32% up today and dollar/yen has a noteworthy upside rally for the fourth day in a row, heading towards 105.00. US stocks reversed higher again while silver surged by 8.62% [..]

Technical Analysis – Silver flies to 8-year high, but struggles to claim 2020 top

Posted on February 1, 2021 at 10:53 am GMT

Sliver opened 4.5% above last week’s closing price on Monday and on the top of January’s peak of 27.91 before accelerating towards a new 8-year high of 30.07. Despite the fast rally, the price seems to struggle to surpass the 2020 peak of 29.83, while not far above today’s peak, the 50% Fibonacci retracement of the 2011 downtrend at 30.70 could be a bigger challenge. With the RSI entering the overbought zone, there is another reason to keep some caution [..]

Daily Market Comment – Stocks steady as retail traders switch focus to silver

Posted on February 1, 2021 at 9:58 am GMT

Silver rockets higher as it becomes the new target for Reddit traders Equity markets a lot calmer but growth worries, vaccine doubts cap gains Pound leads FX majors, euro tarnished by EU’s vaccine mess Retail investors pile in on silver as Reddit frenzy continues The war between the establishment on Wall Street and small-time investors is far from over as not only are retail traders still betting against short sellers of GameStop and other Reddit favourites, but they are now [..]

Technical Analysis – EURUSD’s pullback consolidates into Ichimoku cloud

Posted on February 1, 2021 at 9:26 am GMT

EURUSD is currently edging sideways around the 50-day simple moving average (SMA) and crawling into the Ichimoku cloud, after a retracement from the recent 32½-month high of 1.2349. Despite the retraction, the slowed negative bearing in the red Tenkan-sen line and the flattening of the blue Kijun-sen line are both backing the stalling price action. Nonetheless, the climbing SMAs are retaining a bullish tone, which is nurturing the positive structure. Evaporating directional momentum is apparent in the short-term oscillators. Lately, [..]

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