USD is generally stronger on the day after a long period of ranging markets due to the market holidays. EURUSD fell sharply to 1.0910 from nearly 1.10 despite data showing that USD trade deficit widened in November. For now, the main driver of markets continues to be the oil prices (+2%). When they rise, Stock markets do to, which generally strengthens the USD. GBPUSD posted new 8 month lows today falling as low as 1.4790 in the USD led rally that saw also GOLD make an interim low at 1068.30. Higher oil prices have helped also boost the value of currencies of OIL exporting countries such as the CAD. USDCAD turned lower after hitting a 1-week high of 1.3939 and dropped all the way toward to a marginal new low of 1.3860. Still though, it remains near an 11-year high of 1.4000 struck on December 18. With no major news and thin trading volume ahead of the New Year holiday, moves can be exaggerated with no clear catalyst behind them.
Trading quote of the day: “An investment in knowledge pays the best interest.” Benjamin Franklin
Currency Updates:
EUR/USD Intraday: under pressure
Pivot: 1.096
Our preference: short positions below 1.096 with targets @ 1.09 & 1.0865 in extension.
Alternative scenario: above 1.096 look for further upside with 1.099 & 1.101 as targets.
Comment: the RSI is mixed to bearish.
Supports and resistances:
1.101 **
1.099 ***
1.096 ***
1.0922 Last
1.09 ***
1.0865 **
1.0845 **
USD/JPY Intraday: under pressure
Pivot: 120.75
Our preference: short positions below 120.75 with targets @ 120 & 119.8 in extension.
Alternative scenario: above 120.75 look for further upside with 121 & 121.3 as targets.
Comment: as long as 120.75 is resistance, look for choppy price action with a bearish bias.
Supports and resistances:
121.3 **
121 **
120.75 ***
120.5 Last
120 **
119.8 **
119.4 ***
GBP/USD Intraday: under pressure
Pivot: 1.487
Our preference: short positions below 1.487 with targets @ 1.478 & 1.476 in extension.
Alternative scenario: above 1.487 look for further upside with 1.4915 & 1.4945 as targets.
Comment: as long as 1.487 is resistance, likely decline to 1.478.
Supports and resistances:
1.4945 ***
1.4915 **
1.487 **
1.4817 Last
1.478 **
1.476 **
1.471 **
AUD/USD Intraday: bullish bias above 0.726
Pivot: 0.726
Our preference: long positions above 0.726 with targets @ 0.7315 & 0.7335 in extension.
Alternative scenario: below 0.726 look for further downside with 0.724 & 0.7205 as targets.
Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Supports and resistances:
0.736 **
0.7335 **
0.7315 ***
0.7288 Last
0.726 ***
0.724 ***
0.7205 **
SPI 200 (ASX) (H6) Intraday: the upside prevails
Pivot: 5190
Our preference: long positions above 5190 with targets @ 5345 & 5380 in extension.
Alternative scenario: below 5190 look for further downside with 5140 & 5085 as targets.
Comment: the RSI is supported by a bullish trend line.
Supports and resistances:
5420
5380
5345
5285 Last
5190
5140
5085
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