2022-12-01 13:26

Market Update - 01 December 2022 EUR/GBP drifts lower for the second straight session and challenges the 0.8575-0.8570 support. Wednesday’s softer Eurozone inflation figures weigh on the Euro and exert downward pressure. The overnight dovish remarks by BoE’s Chief Economist Huw Pill should limit losses for the cross. (FXStreet) GBP/USD climbs to a fresh weekly high on Thursday amid sustained USD selling bias. Dovish remarks by Fed Chair Powell, weaker US bond yields weigh on the greenback. The technical set-up favours bullish traders and supports prospects for further gains. (FXStreet) USD/JPY rebounds from its lowest level since August 23 amid a modest USD uptick. The Fed’s dovish pivot keeps the US bond yields depressed and should cap the buck. Hawkish signals by BoJ member underpins the JPY and acts as a headwind for the pair. (FXStreet) USD/CAD struggles to gain any meaningful traction amid the prevalent USD selling bias. A modest downtick in oil prices undermines the Loonie and helps limit the downside. Traders now look to the US PCE inflation data and ISM PMI short-term opportunities. (FXStreet) EUR/USD advances to 3-day highs above 1.0450. The dollar melts amidst solid risk-on sentiment. Final PMIs, US ISM Manufacturing next of note in the docket. The European currency remains well bid and lifts EUR/USD well north of the 1.0400 hurdle on Thursday. (FXStreet) GBP/JPY pokes a short-term key support line amid downbeat oscillators. Clear break of two-month-old support line becomes necessary for the bears to keep reins. Monthly resistance line restricts corrective rebound below 169.00 hurdle. (FXStreet) AUD/USD scales higher for the third straight day and climbs to a fresh multi-month high. Dovish remarks by Fed Chair Powell keep the USD depressed and offers some support. China’s COVID-19 woes turn out to be the only factor capping the upside for the major. (FXStreet) Gold price rallies back closer to a three-month high amid sustained US Dollar selling. Federal Reserve Chair Powell’s dovish comments continue to weigh on Greenback. Sliding US Treasury bond yields further contribute to driving flows toward XAU/USD. Traders now await the Fed’s preferred inflation gauge for some meaningful impetus. (FXStreet) Prices of natural gas retreated markedly on Wednesday and closed around the 200-day SMA, today near $6.98 per MMBtu. The downtick was in tandem with increasing open interest, which leaves the door open to a deeper pullback in the very near term. A sustained break below the 200-day SMA should be supportive of extra losses for the time being. (FXStreet) WTI crude oil retreats from one-week high to snap three-day uptrend. Sustained trading beyond monthly resistance line, now support, joins 10-DMA breakout to favor bulls.21-DMA 50% Fibonacci retracement level adds to the upside filters. WTI crude oil prints the first intraday loss of the week as bulls step back to $80.00 after renewing the weekly top during early Thursday. (FXStreet) Silver hits a fresh multi-month peak on Thursday, albeit lacks follow-through buying. The technical set-up favours bullish traders and supports prospects for further gains.Dips to the $21.70-60 resistance breakpoint could be seen as a buying opportunity. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2022-11-30 09:50

Market Update - 30 November 2022 GBP/USD regains some positive traction on Wednesday amid renewed USD selling bias. Bets for less aggressive Fed rate hikes and slugging US bond yields weigh on the buck. Bulls seem rather unaffected by dovish remarks from the BoE Chief Economist Huw Pill. Traders now look to US macro data for some impetus ahead of Fed Chair Powell’s speech. (FXStreet) USD/CAD edges lower on Wednesday amid the emergence of some selling around the USD. Bets for less aggressive Fed rate hikes, a positive risk tone weighs on the safe-haven buck. A softer tone around Crude Oil prices undermines the Loonie and helps limit the downside. Traders now look to the US macro data for some impetus ahead of Fed Chair Powell’s speech. (FXStreet) USD/JPY lacks any firm direction and seesaws between tepid gains/minor losses on Wednesday. Sluggish US bond yields keep the USD bulls on the defensive and act as a headwind for the pair. The Fed-BoJ policy divergence continues to lend support ahead of US data and Powell’s speech. (FXStreet) EUR/GBP teases confirmation of a bullish chart pattern, reverses the previous day’s losses. 200-SMA adds to the upside filters, 0.8570 restricts short-term downside. RSI, MACD suggests further upside momentum toward the monthly high. (FXStreet) USD/CAD snaps three-day uptrend, renews intraday low of late. Oil price cheers hopes of more demand from China, OPEC+ output cut. US Dollar seems bracing for hawkish comments from Fed’s Powell. US ADP Employment Change, Q3 GDP and Beige Book eyed as well. (FXStreet) EUR/JPY has extended its recovery to near 143.50 as risk appetite is gaining traction. Analysts are having mixed views on guidance over Eurozone inflation. The odds of the ECB’s bigger rate hike will remain solid despite a marginal decline in Eurozone HICP. (FXStreet) NZD/USD remains firmer for the second consecutive day. Kiwi bulls ignore downbeat NZ Building Permits, China PMIs amid cautious optimism. US Dollar snaps three-day uptrend as traders await Fed Chair Powell’s first speech since November meeting. (FXStreet) AUD/USD picks up bids to poke intraday high, extend the previous day’s rebound. Hawkish bets on RBA slumped after disappointing Aussie inflation data. China PMIs fail to stop buyers amid Covid-linked optimism. Markets seem to prepare for the hawkish comments from Fed Chair Jerome Powell. (FXStreet) USD/CHF retreats from weekly high to snap four-day uptrend. Previous resistance line of an immediate triangle, bullish MACD signals favor buyers. Convergence of 50-day and 100-day EMA challenges the upside moves. (FXStreet) Tuesday’s continuation of the weekly upside in natural gas prices was amidst rising open interest and volume, which is indicative that further gains remain in the pipeline in the very near term. Against that, the commodity still faces the next up barrier at the November high at $7.60 per MMBtu (November 23). (FXStreet) Gold prices have pushed up to a fresh weekly high this morning, continuing a bounce from support that began last week. Gold prices are working on their strongest month of performance since July of 2020, which was just before Gold set it’s all-time-high. It was a quick reversal last Wednesday in Gold. Prices pushed down to the support level I had looked at in Monday’s article plotted around 1737. That level held on Tuesday but on Wednesday, prices began to jump and the 1737 level hasn’t been back in-play since. Price has since moved up to and found resistance off of the next level up at 1759, with further forward drive this morning to test the next resistance level that I had listed at 1769. (DailyFX) Silver seems to struggle to capitalize on its modest intraday uptick on Wednesday. Acceptance above the 200-hour SMA supports prospects for some meaningful gains. A sustained break below the $21.00 mark is needed to negate the positive outlook. (FXStreet) Prices of the WTI Crude Oil rebounded markedly on Tuesday amidst rising open interest, which opens the door to potential gains in the very near term. Despite the bounce, Oil remains well under pressure and extra losses could now revisit the key $70,00 mark per barrel sooner rather than later. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2022-11-29 09:43

Market Update - 29 November 2022 USD/JPY comes under renewed selling pressure on Tuesday amid broad-based USD weakness. Rising bets for less aggressive rate hikes by the Fed continue to weigh heavily on the greenback. A positive risk tone could undermine the safe-haven JPY and help limit the downside for the pair. (FXStreet) EUR/GBP lacks any firm intraday direction and remains confined in a narrow trading band. Talks for more aggressive rate hikes by the ECB underpin the Euro and lend some support. Traders look to the flash German CPI and BoE Governor Bailey’s speech for some impetus. (FXStreet) GBP/USD pares the first daily loss in three, retreats from intraday high top of late. One-week-old horizontal resistance area tests Cable buyers. RSI, MACD favor further upside, 200-HMA restricts the bear’s entry. (FXStreet) On the daily chart, the DXY Dollar Index is starting to show early signs of a potential bullish reversal. For starters, prices left behind a Doji candlestick that then saw upside follow-through over the past 24 hours. This is as prices tested the 200-day Simple Moving Average (SMA) and positive RSI divergence emerged. The latter shows fading downside momentum which can at times precede a turn higher. Further gains would place the focus on the 20-day SMA as well as the 107.99 inflection point. (DailyFX) USD/CAD is declining towards 1.3400 amid a sheer recovery in oil prices. The risk-off impulse has faded after china announces economic stimulus to offset the Covid-inspired volatility. Apart from Fed Powell’s speech, the US/Canada GDP data will be keenly watched. (FXStreet) EUR/USD picks up bids to reverse two-day downtrend amid market’s cautious optimism. Retreat in China’s covid infections from record high, efforts to revive real-estate sector improved sentiment. Hawkish comments from the Fed, ECB policymakers test the pair buyers ahead of the key data/events. German HICP precedes Eurozone inflation to offer early signal, US CB Consumer Confidence will also be important for fresh impulse. (FXStreet) AUD/USD regains positive traction on Tuesday amid the emergence of fresh USD selling. Bets for less aggressive Fed rate hikes, a recovery in the risk sentiment weighs on the buck. China’s COVID-19 woes should cap optimistic moves and act as a headwind for the Aussie. (FXStreet) USD/CHF renews intraday low during the first negative daily performance in four Improvement in market sentiment, downbeat US Treasury bond yields weigh on the US Dollar. Swiss Q3 GDP, US CB Consumer Confidence could offer immediate directions. (FXStreet) NZD/USD picks up bids to snap two-day uptrend, eyes the biggest daily gain in a week. NZIER forecasts highlight inflation, interest rates as key headwinds for economy. Easing Covid numbers from China, help for ailing real-estate market favor sentiment. US CB Consumer Confidence, NZ Building Permits may entertain intraday traders. (FXStreet) USD/INR holds lower ground near intraday bottom amid mildly positive markets. Easing in China covid numbers, property market optimism weigh on the US Dollar. S&P cuts India’s economic growth forecast but Morgan Stanley stays bullish. Firmer oil prices, hawkish Fedspeak poke pair sellers ahead of India Q3 GDP, Fed Chairman Jerome Powell’s speech. (FXStreet) Monday’s uptick in prices of natural gas was accompanied by a small drop in open interest, which could hint at the view that the uptrend could start losing momentum in the very near term. The continuation of the recovery, in the meantime, is expected to remain focused on the November peak at $7.60 per MMBtu (November 23). (FXStreet) Gold price (XAU/USD) picks up bids to reverse the previous day’s loss, the heaviest in a week, around $1,755 during early Tuesday morning in Europe. The yellow metal’s latest gains could be linked to the mildly positive sentiment in the global financial markets, mainly led by upbeat headlines from China. However, anxiety ahead of the key events restricts the Gold price upside as of late. (FXStreet) Silver regains strong positive traction on Tuesday and reverses the previous day’s downfall. The technical set-up favours bullish traders and supports prospects for further intraday gains. Acceptance below the $21.00-$20.90 area is needed to negate the near-term positive outlook. (FXStreet) Prices of the WTI charted an inconclusive session on Monday, reversing an initial drop to new 2022 lows. The move was amidst shrinking open interest and a marked build in volume, exposing a probable bounce in the very near term while not ruling out further weakness in the longer run. On the latter, the $70.00 mark per barrel emerges as the immediate support. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2022-11-28 10:01

Market Update - 28 November 2022 GBP/USD reverses an intraday dip amid the emergence of fresh selling around the USD. Bets for less aggressive rate hikes by the Fed, sliding US bond yields weigh on the buck. China’s COVID-19 jitters could offer support to the safe-haven USD and cap the major. (FXStreet) The index fades Friday’s advance and returns to the sub-106.00 area. US yields gives away part of the recent gains on Monday. The Dallas Fed Manufacturing Index, Fedspeak come next in the docket. The greenback starts the week on the defensive and slips back to the area below the 106.00 mark when tracked by the USD Index (DXY). (FXStreet) USD/CAD climbs to a one-week high and draws support from a combination of factors. Bearish Oil prices undermine the Loonie and act as a tailwind amid modest USD strength. Bets for less aggressive Fed rate hikes cap the Greenback and any further gains for the pair. (FXStreet) USD/JPY meets with a fresh supply on Monday amid reviving demand for the safe-haven JPY. The narrowing of the US-Japan rate differential also underpins the JPY and weighs on the pair. A modest USD strength could offer some support to the major and help limit any further losses. (FXStreet) EUR/USD pares intraday losses while also keeping bears hopeful. Downside break of two-week-old support line, bearish oscillators favor sellers. Fortnight-long resistance line, monthly high adds to the upside filters. (FXStreet) NZD/USD remains under some selling pressure for the second successive day on Monday. A weaker risk tone benefits the safe-haven Greenback and weighs on the risk-sensitive Kiwi. Bets for less aggressive Fed rate hikes cap the USD upside and help limit losses for the pair. (FXStreet) AUD/USD pokes short-term key support confluence as it braces for the biggest daily loss in a week. Convergence of 100-DMA, three-week-old ascending trend line probes sellers. MACD, RSI conditions tease sellers to aim for a two-month-long horizontal support zone. (FXStreet) USD/CHF prints three-day uptrend as sour sentiment underpins US Dollar. China-linked woes join pre-data anxiety to favor USD/CHF bulls. Swiss Q3 GDP, Fed Chair Powell’s speech and US NFP are the key calendar events. Headlines surrounding China are also important for clear directions. (FXStreet) USD/INR retreats from intraday high as softer oil prices favor INR bulls. Covid woes weigh on the market sentiment as traders begin the key week. India’s Q3 GDP will be crucial ahead of Fed Chair Powell’s speech, US NFP. (FXStreet) Gold price has reclaimed $1,750.00 as the USD Index has failed to extend its recovery despite the risk-off mood. The speech from Federal Reserve chair Jerome Powell will trim ambiguity over interest rate slowdown chatters. Before United States NFP, US ADP Employment data will provide meaningful cues about the labor market status. Gold price is expected to remain on the sidelines ahead of Federal Reserve chair Jerome Powell’s speech and US ADP data. (FXStreet) Friday’s strong decline in prices of natural gas was amidst diminishing open interest and volume and opens the door to the continuation of the underlying uptrend in the very near term and with immediate hurdle at the November high at $7.60 per MMBtu (November 23). (FXStreet) Silver price (XAG/USD) bounces off the daily lows surrounding $21.00 to $21.25 as European traders brace for the key week on Monday. In doing so, the bright metal justifies the mixed signals from the options market, as well as the risk-off mood. (FXStreet) Prices of the barrel of WTI extended the downtrend on Friday amidst rising open interest, which is supportive of the continuation of the downside in the very near term. Against that crude oil prices could revisit the key $70.00 mark per barrel sooner rather than later. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2022-11-25 09:44

Market Update - 25 November 2022 USD/JPY gains some positive traction and stages a goodish rebound from over a one-week low. A positive risk tone is seen undermining the safe-haven JPY and acting as a tailwind for the pair. Bets for less aggressive Fed rate hikes keep the USD bulls on the defensive and might cap gains. (FXStreet) EUR/USD adds to the recent strength above the 1.0400 mark. Germany’s final Q3 GDP Growth Rate expanded 1.3% YoY. German Consumer Confidence “improved” to -40.2 in December. The buying pressure remains well and sound around the shared currency and motivates EUR/USD to extend the uptick beyond the 1.0400 mark with some conviction. (FXStreet) EUR/GBP stages a modest recovery from the monthly low touched on Thursday. A combination of factors underpins the shared currency and offers some support. Rising bets for additional BoE rate hikes benefit the GBP and seem to cap gains. (FXStreet) GBP/USD is seen oscillating in a narrow trading band on the last day of the week. The less hawkish FOMC minutes continue to weigh on the USD and offer support. Relatively thin trading conditions hold back bullish traders from placing fresh bets. (FXStreet) USD/CAD refreshes weekly low on Friday amid sustained selling around the US Dollar. The less hawkish FOMC minutes and a positive risk tone continue to weigh on the buck. An uptick in oil prices underpins the Loonie and contributes to the pair’s modest decline. (FXStreet) The index reverses part of the weekly drop on Friday. Market conditions are expected to remain thin due to US inactivity. The risk complex sees some profit taking at the end of the week. The greenback, in terms of the USD Index (DXY), manages to regain some balance and bounces off recent lows near 105.60 at the end of the week. (FXStreet) AUD/USD edges lower on Friday, though the intraday downtick lacks follow-through. China’s COVID-19 woes weigh on investors’ sentiment and the risk-sensitive Aussie. The prevalent USD selling bias lends support and limits the downside for the major. (FXStreet) USD/INR is expected to display sheer losses as it has surrendered the critical support of 81.60. The 10-year US Treasury yields have dropped to near 3.66% as investors see no 75 bps rate hike move ahead. Weaker oil prices and firmer Indian indices have strengthened the Indian rupee bulls. (FXStreet) The New Zealand Dollar has not been impacted much despite Retail Sales data missed estimates. NZD/USD is hoping for a cushion around the 20-MA (High-Low) band. A slippage in the RSI (14) to the 40.00-60.00 range is merely a loss of momentum, not a bearish reversal. (FXStreet) Brent crude oil is trading marginally higher this Wednesday although still relatively depressed due to the news about the G-7 proposal to increase the Russian oil price cap from around $60 to $65-$70. What this means for oil markets is that if this new range is agreed upon, Russia is then unlikely to cut off supply as these prices as would be the case with the $60 level. The reason behind this is the fact that Urals (Russian crude oil) has been selling at these levels relative to Brent crude. This being said, there was no agreement made by the member nations with discussion set to continue today. (DailyFX) USD/CHF is failing to sustain above the 0.9440 hurdle as the risk-on impulse is still solid. The US Dollar has displayed wild gyration in the morning trade. Swiss Employment level is seen higher at 5.331M than the prior release of 5.316M. (FXStreet) The limited retreat this week and still-buoyant momentum suggest that gold could make one more attempt to test key resistance that has been held so far this month. Last week, XAU/USD turned lower from near a key barrier,a bit earlier than anticipated. The converged ceiling is at 1800-1820, which includes the 200-day moving average and at least three trendline resistances – one from the end of 2021, another from July, and the third from August. (DailyFX) Silver comes under some selling pressure on Friday, though the downside remains cushioned. The technical setup supports prospects for the emergence of some dip-buying at lower levels. A sustained break below a trend-line resistance breakout point will negate the positive outlook. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2022-11-24 10:09

Market Update - 24 November 2022 GBP/USD kicks off the week on the wrong footing amid resurgent US Dollar demand. Risk aversion weighs negatively on the Pound Sterling ahead of BoE-speak. GBP/USD buyers stay hopeful amid bullish RSI, eyes on 1.2128 rising wedge hurdle. (FXStreet) The index adds to the weekly pullback and breaches 106.00. US markets will be closed due to the Thanksgiving Day holiday. The dollar remains depressed following FOMC Minutes The greenback loses ground for the third session in a row and breaks below the 106.00 support when gauged by the USD Index (DXY). (FXStreet) USD/JPY remains pressured around weekly low, down for the third consecutive day. Mixed data from Japan, absence of bond traders failed to stop bears amid broad-based US Dollar weakness. Concerns surrounding Fed’s next move, China underpin cautious optimism, weigh on the USD. (FXStreet) EUR/USD extends 200-DMA breakout towards the monthly high. Concerns surrounding China, Fed underpin market’s firmer sentiment. Cautious optimism, softer US Dollar favor three-day winning streak. Germany’s IFO Sentiment figure, ECB Monetary Policy Meeting Accounts eyed for clear directions. (FXStreet) USD/CAD holds lower ground nearly weekly bottom, eyes further downside. U-turn from 21-DMA, support-turned-resistance line from August favor sellers. 100-DMA, 61.8% Fibonacci retracement level lure the bears. USD/CAD prints a three-day downtrend as it refreshes the weekly low around 1.3330 heading into Thursday’s European session. (FXStreet) GBP/USD cheers broad US Dollar weakness to refresh multi-day top. Brexit pessimism, mixed UK PMIs probe upside momentum during Thanksgiving holiday in the United States. Fed Minutes propelled pivot talks and joined downbeat US statistics to weigh on the USD. (FXStreet) USD/TRY remains pressured around 18.60, down for the third consecutive day, as traders prepare for the Interest Rate Decision from the Central Bank of the Republic of Turkiye (CBRT). That said, the Turkish central bank is likely to keep diverging from its global counterparts, despite strong inflation, as market consensus suggests a third consecutive rate cut to 9.0%, from 10.5% current level. (FXStreet) NZD/USD has surpassed the crucial hurdle of 0.6250 amid solid risk-on impulse. Federal Reserve policymakers are supporting the interest rate hike slowdown regime to reduce financial risks. The Reserve Bank of New Zealand sees the interest rate peak at 5.5%. NZD/USD is aiming to smash the round-level resistance of 0.6300 as RBNZ-Fed policy divergence has widened. (FXStreet) USD/CHF extends week-start pullback towards the monthly low. Three-month-old horizontal area challenges sellers amid oversold RSI, 200-DMA restricts buyer’s entry. 61.8% and 78.6% Fibonacci retracement levels act as additional trading filters. (FXStreet) USD/INR holds lower ground near intraday bottom after two-day downtrend. Clear break of two-week-old ascending trend line favors intraday sellers to aim for 50-SMA. 200-SMA acts as an extra filter towards the north. (FXStreet) AUD/USD is inching strongly towards the crucial hurdle of 0.6800 as US Dollar is facing immense selling pressure. The US Dollar is exposed to test a three-month low at 105.34 amid a risk appetite theme. Economists at ANZ Bank believe that the sell-off in US Dollar is exaggerated as current inflation is well above 2% target. (FXStreet) Prices of the WTI dropped strongly and breached the key $80.00 mark per barrel on Wednesday. The sharp pullback was reinforced by increasing open interest and volume and signals that further weakness lies ahead in the very near term. That said, the WTI could slip back and revisit the YTD low at $74.30 (January 3). (FXStreet) Wednesday’s strong advance in prices of natural gas reached multi-week highs around $7.60. The move was against the backdrop of increasing open interest and volume, indicative that the rally remains well and sound for the time being. That said, the next hurdle for the commodity is seen at the $8.00 mark per MMBtu in the very near term. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.