The US Dollar Index wrapped up last week a whisker south of session tops, adding +0.8% and extending January’s recovery. Month to date, the unit is +1.8% in the green and has reclaimed the entire portion of December’s downside.
Monthly Timeframe
Technical observations on the monthly timeframe are largely unchanged from previous writing (and will likely remain...
APPL Prints Largest One-Day Gain in Months
Major US equity indices rallied across the board yesterday; the S&P 500 added nearly +1.0% (and formed a half-hearted daily morning star pattern ). Large tech names led the way in recent movement, and, unsurprisingly, the price of Apple (AAPL), due to its large weight in the S&P, gapped higher and delivered its largest...
Amidst a bid in US yields and the dollar, alongside hawkish commentary from Federal Reserve Governor Christopher Waller, who emphasised support for a more methodical and careful approach to loosening policy, we have seen the price of spot gold (XAU/USD) trade on the back foot in recent days and consequently pull the yellow metal into an interesting area of...
Following two consecutive months of upside for the AUD/USD, things have, for lack of a more technical phrase, ‘gone pear-shaped’ for the currency pair in January. Month to date, the unit is down -3.7%, and has reclaimed the entire month of gains provided in December and is already beginning to chew away at November’s upside move.
Monthly Symmetrical Triangle
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Following this morning’s jobs data out of the UK, which saw unemployment remain steady at 4.2% in the three months to November and wages for November (3m YoY) fall to 6.8% (including bonuses) and, as expected at 6.6% for pay excluding bonuses, sterling has sold off against its US counterpart during the European session.
Technical Eyes
Technically, the...
Price action on the daily timeframe of the AUD/USD demonstrates that bears are at the wheel for now.
This follows last week's retest at the underside of breached channel support, extended from the low of $0.6339 and, as you can see, has led the currency pair to confront support at $0.6659 today. Accompanying this support level is a mild Fibonacci cluster, made...
The Forex market (FX), or foreign exchange market, represents a vast and dynamic space in which currencies are traded daily. Serving as the largest financial market in the world—trading in the Forex market reached US$7.5 trillion per day in April 2022, according to the Bank for International Settlements (BLS)—the Forex market delivers clear and actionable trends...
The weekly chart of Exxon Mobil Corp (XOM) is poised to confront a neckline at $98.31 of a major long-term triple-top formation around the $120.00 mark. Should further selling unfold and a price close materialises south of the neckline, chart pattern enthusiasts will look to apply the pattern’s profit objective (a value derived from the highest peak in the pattern...
The EUR/CHF cross echoes a strong downside vibe at the moment.
Monthly Descending Triangle Completed
Not only has price traded southbound since late 2007, but movement on the monthly timeframe closed south of the lower edge of a descending triangle last month, extended from CHF1.0097 to CHF0.9435. This also nudged the currency pair to all-time lows of...
Although the quarterly inflation print remains the go-to measure for Aussie consumer inflation, the monthly CPI indicator was developed in October 2022 to give policymakers inflation data at a higher frequency.
According to the monthly CPI indicator, inflation slowed to 4.9% in the twelve months to October 2023, easing from 5.6% in September 2023. Tomorrow’s...
Following a surprise beat from Friday’s non-farm payrolls, the S&P 500 concluded the first trading week of the year on the back foot and snapped a nine-week winning streak. Attention now shifts to Thursday's US CPI inflation release at 1:30 pm GMT.
Technical Landscape Favours Bears, at Least in the Short Term
Unquestionably, the market average has exhibited a...
Following the formation of a daily falling wedge taken from ¥146.59 and ¥140.96 and accompanying positive divergence out of the Relative Strength Index (RSI), USD/JPY bulls have been largely on the offensive so far this year.
This has led to the currency pair rupturing the upper boundary of the noted falling wedge, together with a break of the 200-day simple...
Stocks and bonds kicked off the year underwater, with the S&P 500 snapping a nine-week winning streak and pencilling in what many technical analysts would refer to as a weekly Evening Star candlestick formation: a bearish cue. The Dollar Index ended the week higher, its first weekly gain in three weeks, with spot gold (XAU/USD) fading familiar weekly resistance at...
Long-Term Technicals Favour Buyers
The AUD/USD technical space is chalking up an interesting picture.
From the longer-term monthly scale, you will note that price recently recoiled from the lower edge of a symmetrical triangle (or coil) drawn from the low of $0.5506 and engulfed a neighbouring descending resistance taken from the high of $0.7661. Technically,...
As we step into 2024, this is where we begin to see the last of 2023 data filter through, including the widely followed US Employment Situation Report for December, released at 1:30 pm GMT today.
According to Bloomberg’s median estimate, economists expect that the US economy generated approximately 175,000 new jobs in the month of December; the estimate range is...
Fundamental Analysis in Forex Trading: Factors that Affect Currencies
READING TIME: 11 MINUTES
Estimating future price movements in the currency market is challenging for many. Globally, the foreign exchange market commands the biggest slice of the financial ‘cake’, claiming an eye-watering US$6.6 trillion in global FX market turnover.
Traders will use a...
It’s here. The FINAL full week of the trading year!
While liquidity will begin to thin as we close in on the festive holiday, a number of tier-1 data are in the headlights this week.
Tuesday
Tuesday entertains the minutes from the Reserve Bank of Australia (RBA) and the Bank of Japan (BoJ) Policy Rate announcement, followed by CPI inflation numbers out of...
While bears did indeed make an appearance last week and snap an eight-week winning streak, BTC/USD remains on track to record a third consecutive month in the green (MTD performance: +11.6%). In a market demonstrating uptrends on both the weekly and daily timeframes, the recent surge witnessed the major cryptocurrency reach $45,000, levels not seen since April...
