• Immediate resistance is located at 1.8905 (50%fib), any close above will push the pair towards 1.89631 (5DMA)
• Immediate support is seen at 1.8758 (38.2%fib ) and break below could take the pair towards 1.8570 (23.6%fib).
Recommendation: Good to sell around 1.8750, with stop loss of 1.8900 and target price of 1.8600.
• GBP/AUD declined on Thursday as sterling was weighed down as Brexit talks turned sour.
• The British currency has been jittery on Brexit headlines, dropping in response to news suggesting a deal is unlikely
• The is pair heading down to test 23.6%fib at 1.7606, as the UK news turns more negative.
• Technical signals are bearish as RSI is at 31, daily...
GBPJPY declined sharply more than 150 pips on the weak Pound sterling. GBPUSD is trading below 1.300 after UK- EU talks in Brussels yielded no results. The intraday trend of GBPJPY is bearish as long as resistance 140.50 holds.
EURUSD is trading higher after ECB monetary policy statement. The central bank has kept its rates unchanged as expected and increased its bond purchase by € 500 billion. The number of people who have filed for unemployment benefits has increased to 853000 vs an estimate of 725K. US CPI came at 0.2% in November compared to a forecast of 0.1%. The annual inflation...
CHFJPY is trading higher after a minor dip till 117.02. The intraday trend of the pair remains bullish as long as support 117 holds. USDCHF continues to trade weak and significant trend reversal only above 0.8950.
Gold is trading weak after hitting a high of $1870 level on a strong dollar. The slight deterioration in risk sentiment is supporting the US dollar index at lower levels.
USDCAD continues to trade weak and hits the lowest level since Apr 2018 on broad-based US dollar selling. The COVID vaccination in UK and Russia has increased demand for riskier assets like stocks. Markets eye BOC monetary policy statement today for further direction. The central bank is expected to keep rates unchanged at 0.25% at least till 2023. DXY lost more...
Gold Up Over Hopes for U.S. Stimulus Measures
Gold was up on Monday morning in Asia, with hopes that the latest U.S. fiscal stimulus measures will be passed during the week countering downward pressure from optimism around COVID-19 vaccines roll-outs.
USD/JPY rises to 105.61, up 0.25% on a day, during the pre-European session trading on Monday. The yen pair recently picked bids as market sentiment turned positive amid coronavirus (COVID-19) vaccine hopes. Also, receding uncertainty surrounding Japan’s leadership after PM Shinzo Abe further propels the risk-on mood.
While portraying the same, the S&P 500...
Reviving safe-haven demand benefitted the JPY and exerted pressure on the cross.
Any subsequent fall might still be seen as a buying opportunity and remain limited.
