Daily Outlook

January 6, 2016

Global growth worries continue to dominate as European stocks are again trading lower in what has been a bleak start to the year. With concerns over a global slowdown, oil moved lower towards $36 per barrel while Gold moved up amidst the uncertainty.

Safe haven currencies are again the big winners of the day as USD, JPY & CHF made strong gains whilst riskier currencies suffered. Of the majors, Euro has so far faired the worst as it gave up almost 100 points against the greenback.

Following the FEDs first rike hike for 10 years last month, things have perhaps not gone as expected so far this year as investors have been left scratching their heads as to what might be coming next.

William Hobbs of investment strategy at Barclays PLC’s wealth-management unit in London said, ‘It’s a really messy start to the year, everyone is really on edge. Not much is expected of the world in terms of growth, risk appetite is biased to the downside and weak data from China to the U.S. hasn’t helped at all. Plenty of people out there believe that the next global recession is imminent.

With US Non-Farm Payrolls on Friday, global markets will be waiting in anticipation for data that may provide some clearer direction.

Trading quote of the day: “No profession requires more hard work, intelligence, patience, and mental discipline than successful speculation.” – Robert Rhea

Currency Updates:

EUR/USD Intraday: the downside prevails

Pivot: 1.0805

Our preference: short positions below 1.0805 with targets @ 1.069 & 1.066 in extension.

Alternative scenario: above 1.0805 look for further upside with 1.0845 & 1.0865 as targets.

Comment: technically the RSI is below its neutrality area at 50.

Supports and resistances:
1.0865 **
1.0845 ***
1.0805 ***
1.0742 Last
1.069 ***
1.066 ***
1.0637 **

USD/JPY Intraday: the downside prevails

Pivot: 119.7

Our preference: short positions below 119.7 with targets @ 118.7 & 118.4 in extension.

Alternative scenario: above 119.7 look for further upside with 119.95 & 120.45 as targets.

Comment: the RSI is mixed to bearish.

Supports and resistances:
120.45 **
119.95 ***
119.7 ***
118.981 Last
118.7 ***
118.4 **
118.1 ***

GBP/USD Intraday: the downside prevails

Pivot: 1.4725

Our preference: short positions below 1.4725 with targets @ 1.463 & 1.459 in extension.

Alternative scenario: above 1.4725 look for further upside with 1.4755 & 1.479 as targets.

Comment: the RSI is mixed to bearish.

Supports and resistances:
1.479 **
1.4755 ***
1.4725 ***
1.4663 Last
1.463 **
1.459 **
1.457 **

AUD/USD Intraday: the downside prevails

Pivot: 0.7215

Our preference: short positions below 0.7215 with targets @ 0.713 & 0.71 in extension.

Alternative scenario: above 0.7215 look for further upside with 0.724 & 0.727 as targets.

Comment: the RSI lacks upward momentum.

Supports and resistances:
0.727 ***
0.724 **
0.7215 ***
0.7146 Last
0.713 **
0.71 ***
0.707 ***

SPI 200‏ (ASX)‏ (H6) Intraday: the downside prevails

Pivot: 5190

Our preference: short positions below 5190 with targets @ 5100 & 5063 in extension.

Alternative scenario: above 5190 look for further upside with 5232 & 5270 as targets.

Comment: as long as 5190 is resistance, likely decline to 5100.

Supports and resistances:
5270
5232
5190
5147 Last
5100
5063
5040

 

 

 

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