The first trading week of the year 2016 has seen some dramatic movements. Chinese equities have had a tough start to the year, which spread the panic around the global markets. Generally, Gold, the Yen, Swiss Franc, Euro and US Dollar have performed well, while the rest struggled. Markets have been jittery. Focus will remain on China and commodity prices ahead of the week.
Last Friday evening (Saturday morning), the US released its payrolls to finish its 2015 labor market on a high with payrolls rising by 202k in December, 90k than expected. The FED will feel vindicated in raising interest rates last month for the first time in 10 years as the U.S labor market is clearly very strong at the moment. Investors will now be looking at earnings and inflation figures, whilst the FOMC meeting scheduled for the last week of January will be eagerly anticipated as we wait for further guidance from the FED on future rate hikes.
Trading quote of the day: “A great trader is like a great athlete . You have to have natural skills, but you have to train yourself how to use them.” – Marty Schwartz, Pit Bull
Currency Updates:
EUR/USD Intraday: the upside prevails
Pivot: 1.0875
Our preference: long positions above 1.0875 with targets @ 1.099 & 1.1035 in extension.
Alternative scenario: below 1.0875 look for further downside with 1.0825 & 1.077 as targets.
Comment: the RSI calls for a new upleg.
Supports and resistances:
1.106 ***
1.1035 ***
1.099 ***
1.0944 Last
1.0875 ***
1.0825 ***
1.077 ***
USD/JPY Intraday: the upside prevails.
Pivot: 117.35
Our preference: long positions above 117.35 with targets @ 118.8 & 119.3 in extension.
Alternative scenario: below 117.35 look for further downside with 116.75 & 116.1 as targets.
Comment: the RSI has just landed on a support around 30% and is reversing up.
Supports and resistances:
119.65 ***
119.3 ***
118.8 ***
117.758 Last
117.35 ***
116.75 ***
116.1 ***
GBP/USD Intraday: the downside prevails
Pivot: 1.4565
Our preference: short positions below 1.4565 with targets @ 1.445 & 1.44 in extension.
Alternative scenario: above 1.4565 look for further upside with 1.46 & 1.4645 as targets.
Comment: the RSI has broken down its 30 level.
Supports and resistances:
1.4645 ***
1.46 ***
1.4565 ***
1.4503 Last
1.445 **
1.44 **
1.437 *
AUD/USD Intraday: the downside prevails
Pivot: 0.7
Our preference: short positions below 0.7 with targets @ 0.69 & 0.686 in extension.
Alternative scenario: above 0.7 look for further upside with 0.704 & 0.7085 as targets.
Comment: the RSI has broken down its 30 level.
Supports and resistances:
0.7085 ***
0.704 ***
0.7 ***
0.6942 Last
0.69 ***
0.686 **
0.682 **
SPI 200 (ASX) (H6) Intraday: key resistance at 5000
Pivot: 5000
Our preference: short positions below 5000 with targets @ 4820 & 4800 in extension.
Alternative scenario: above 5000 look for further upside with 5040 & 5100 as targets.
Comment: as long as 5000 is resistance, look for choppy price action with a bearish bias.
Supports and resistances:
5100
5040
5000
4850 Last
4820
4800
4750
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