Tuesday, January 19

Tag: Forex

EUR/USD Price Analysis: Extends downside break of 50-day SMA to refresh six-week low
Forex

EUR/USD Price Analysis: Extends downside break of 50-day SMA to refresh six-week low

EUR/USD takes offers near the lowest since December 09, 2020. Sustained break of 50-day SMA, downward sloping RSI favor sellers. Seven-day-old falling trend line adds to the upside barriers.EUR/USD takes offers near 1.2065, down 0.10% intraday, during Monday’s Asian session. In doing so, the currency pair drops to the fresh low since early December 2020 while stretching Friday’s downside break of 50-day SMA.In addition to the successful break below 50-day SMA, descending RSI line, which is far from oversold conditions, also back the EUR/USD bears in attacking 38.2% Fibonacci retracement of an upside from November 2020 to the monthly high.It should, however, be noted that December 02 low near 1.2040 and the 1.2000 threshold will be tough nuts to crack for the EUR/USD sel...
US Dollar Index Price Analysis: Looks consolidative near-term
Forex

US Dollar Index Price Analysis: Looks consolidative near-term

DXY extends the side-lined trading above 90.00 on Friday. Further upside targets the 2021 high near 90.70.DXY remains in a consolidative-mode and manages well to keep the trade above the 90.00 mark for the time being.If bulls regain control of the sentiment on a more serious stance, then the index could re-visit the so far YTD tops in the 90.70/75 band ahead of the weekly high in the 91.00 region (December 21). Above this level, the prevailing downside pressure is expected to mitigate somewhat.In the longer run, as long as DXY trades below the 200-day SMA, today at 94.50, the negative view is forecast to prevail.DXY daily chartCredit: FX Street
NZD/USD breaks above key downtrend, sets double top at 0.7240
Forex

NZD/USD breaks above key downtrend, sets double top at 0.7240

NZD/USD broke above a key downtrend on Thursday, though is back of 0.7240 highs now. The US dollar weakened predominantly against its more risk-sensitive G10 peers on Thursday, including the kiwi. The pair now appears to be in the early stages of forming an ascending triangle.NZD/USD has been somewhat on the back foot in recent trade, dropping back from close to session highs in the upper 0.7230s to current levels around 0.7220 and remaining well supported above 0.7200. The pair closed Thursday FX trade with decent gains amid a broadly softer US dollar, rising 0.6% or 46 pips. The US dollar weakened predominantly against its more risk-sensitive G10 peers on Thursday in the run-up to comments from the Chairman of the Federal Reserve Jerome Powell, who largely stuck to the usual dovish sc...
GBP/USD off the lows, looks to regain 1.3650 ahead of US data, Powell
Forex

GBP/USD off the lows, looks to regain 1.3650 ahead of US data, Powell

GBP/USD picks up fresh bids amid risk-on mood. DXY and Treasury yields bounce to cap cable’s upside. Eyes on US data, Powell and Biden’s speech amid UK covid updates.Fresh bids emerged once again near the 1.3615 region, allowing a bounce in GBP/USD back towards 1.3650 ahead of the European session.Despite the quick pullback, the bulls remain cautious ahead of the critical US weekly jobless claims data and a scheduled speech by the Fed Chair Jerome Powell. Investors will watch out for any hints on tapering amidst ongoing chatter over the taper talks, although many of the Fed officials dismissed the chances of tapering.The main event risk for the USD traders will likely remain President-elect Joe Biden’s expected $2 trillion stimulus package, the report of which trigger...
AUD/USD continues consolidation within pennant since start of 2021, breakout likely
Forex

AUD/USD continues consolidation within pennant since start of 2021, breakout likely

AUD/USD back below the 0.7750 mark on Wednesday, closing with losses of about 0.5%. Focus will be on events stateside this week, with Biden unveiling stimulus plans, Fed Chair Powell and plenty of data.AUD/USD came off the boil on Wednesday, closing FX trade with losses of about 0.5% or 40 pips and dropping back below the 0.7750 mark. The pair has been setting lower highs and higher lows since the start of 2021 and appears to be consolidating within a pennant structure that could be subject to a breakout.To the downside, support comes in the form of an uptrend linking the 28 December high and the 4 and 11 January lows. A break below this trendline would open the door to a move towards the 21-day moving average at 0.7650, which also happens to coincide with the current 2021 lo...
GBP/USD: Fizzles BOE’s Bailey-led gains below 1.3700 amid UK’s covid fears
Forex

GBP/USD: Fizzles BOE’s Bailey-led gains below 1.3700 amid UK’s covid fears

GBP/USD eases from eight-day top after posting the heaviest gains in 10 weeks the previous day. BOE’s Bailey ruled out negative rates, UK government forced to set up temporary morgues amid virus-led challenges to healthcare system. Brexit costs more to UK fisheries, Brussels-London will talk finance cooperation soon. US policymaker push for Trump impeachment, President-elect Biden’s stimulus and virus woes eyed.GBP/USD steps back from the weekly top of 1.3693 to 1.3680, up 0.15% intraday, while heading into London open on Wednesday. The sterling jumped the most since early November the previous day as Bank of England (BOE) Governor Andrew Bailey dropped calls of negative rates. While the initial US dollar weakness helped cable to extend those gains early in Asia, rene...
What is a Pip? | Forex in 60 Seconds
Forex, Learn in 60 sec

What is a Pip? | Forex in 60 Seconds

https://www.youtube.com/watch?v=EfGmUiOPJCAA point in price, or pip for short, is the measure of change in a currency pair in the forex market. The acronym can also stand for a “percentage in point” and “price interest point”. It is a standardized unit and is the smallest unit of measurement by which a currency quote can change. Most currency pairs are measured to five decimal places. For pairs like EURUSD, a pip corresponds to the fourth decimal digit [EURUSD 1.06712]. Yen-based currency pairs like USDJPY are the exception, and are measured to three decimal places and the pip corresponds to the second decimal digit (USDJPY 114.612).Disclaimer: The content in this video comprises personal opinions and ideas and should not be construed as containing personal and/or other investm...
XAG/USD holds recovery gains above $25.00
Forex

XAG/USD holds recovery gains above $25.00

Silver snaps four-day losing streak, wavers around intraday high off-late. Bullish MACD, gradual bounce off $24.33 favor buyers eyeing 50-HMA. One-week-old resistance line, 200-HMA add to the upside filters.Silver consolidates recent losses around $25.12, up 0.64% intraday, while heading into the European session on Tuesday. In doing so, the white metal rises for the first time in the last five days.It should also be noted that the recovery moves are gradual and in the pattern, backed by the bullish MACD, which in turn suggests further upside to the 50-HMA level near $25.50.However, the commodity’s further rise past-$25.50 will be challenged by a descending resistance line from last Wednesday, near $26.25, ahead of an area comprising 200-HMA and January 06 low surroundi...
S&P 500 eyes 4,300 by the end of 2021 – Goldman Sachs
Forex

S&P 500 eyes 4,300 by the end of 2021 – Goldman Sachs

As per the latest client note published on Sunday, shared via Forbes, Goldman Sachs sounds bullish over S&P 500 while citing expectations of US fiscal stimulus. The details suggest, another round of fiscal stimulus totaling roughly $750 billion, including $300 billion in stimulus checks, $250 billion in relief for state and local governments and $150 billion in extended unemployment benefits, per the report.The investment bank signals 6.4% US GDP growth for 2021, versus -3.6% marked in 2020 and 5.9% estimated earlier.Concerning the US unemployment rate, Goldman Sachs hints 4.8% level after staying mostly unchanged near 6.7%.It was also mentioned in the report that S&P 500 will grow their earnings by a better-than-expected 31%, but a likely corporate tax hike under Democrats...
USD/SGD: Neutral SGD NEER slope to dampen Singapore dollar gains
Forex

USD/SGD: Neutral SGD NEER slope to dampen Singapore dollar gains

During 2020 the Singapore dollar strengthened against the US dollar from 1.3453 to 1.3211.According to economists at MUFG Bank, neutral SGD NEER policy is likely to be maintained which should dampen Singapore dollar gains.Key quotes“The Singapore dollar’s modest appreciation despite the sharp decline in the dollar in 2020 reflected the impact of MAS’ neutral SGD NEER policy set in response to the COVID-19 shock. This neutral policy will set the tone for USD/SGD trading for the whole of 2021, setting constraints for Singapore dollar gains despite extended dollar weakness and potential improvements in current account surpluses. Further monetary easing is unlikely this year as fiscal policy is doing the heavy lifting.”“Spillover effects from last year’s massive fiscal spending aroun...