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EURUSD extends post-Fed losses, US GDP in focusFed’s dovish halt and ECB policymakers hint favoring further negative rates dragged EURUSD below 50-day SMA for the first time since early November the previous day. The bears are currently eyeing a horizontal area comprising lows marked during December and the present month, around 1.2060-50. However, the preliminary readings of the US Q4 GDP can exert additional downside pressure to break the key support zone and test a 100-day SMA near 1.1950. It should, however, be noted that the November 09 top near 1.1920 can challenge the pair’s further downside. In a case where the US GDP surprise markets with better-than-forecast figures, EURUSD can combat the 50-day SMA level of 1.2120 but a falling trend line from January 06, at 1.2155 now, will challenge the bulls afterward. Also acting as an upside barrier is the last week’s peak near 1.2190 and the 1.2200 round-figure. If at all the quote rises past-1.2200 threshold, it’s the run-up to the monthly peak surrounding 1.2350 can’t be ruled out.
Short
by MTradingGlobal
AUDUSD is still in the long-term uptrend channel.AUDUSD is still in the long-term uptrend channel. The Australian Dollar (AUDUSD) fell from the high of 0.7820 on January 6 to the low of 0.7659 on January 18. It rebounded in the past two trading days and returned to above the 0.7700 integer. From the long-term trend and the FED Chairman Powell's dovish attitude, as well as the 1.9 trillion dollar stimulus plan of the new President Joe Biden, the long-term trend of the US Dollar Index is still downward, so the long-term trend of the AUDUSD is upward. By technical analysis, the AUDUSD is still in the long-term uptrend channel, so it is recommended to Buy operations. As shown in the figure: it can be buy now (entry market price around 0.7740), or price falling to above 0.7650 support. Jan.20.2021 Reliability: 3-10 Market Days.
Long
by FxIntelligenceIN
Trump on Twitter, undervalued euro and important dataTraditionally, financial markets could not relax mainly because of one person. It is all about US President Donald Trump. Yesterday, he said that if the head of Sino, Xi Jinping, does not meet with him at the G-20 summit, the United States will impose additional tariffs on Chinese goods. So, as we warned, you should not relax and calm down. Accordingly, buying gold and Japanese yen, especially at current prices, seems to us one of the best trading ideas today. Well, about Trump, we cannot but pay attention to the next wave of verbal interventions on his part. This time, he said that "The Euro and other currencies are devalued against the dollar, putting the U.S. at a big disadvantage." Not that everyone rushed to buy euros after that, but Trump definitely sowed seeds of doubt. Immediately, a whole series of major analysts burst out with forecasts in favor of euro growth. In particular, Deutsche Bank noted that the euro is undervalued by 7 against the dollar and should cost 1.20. And according to the Organization for Economic Cooperation and Development model, the euro is generally undervalued by 22% (!). Yesterday, unexpectedly, quite good data on the UK labor market appeared. Employment in April rose by 32K (with the forecast +4K), and the average salary showed growth above analysts' expectation 3.1% (with a forecast 3.0%). We have been waiting for much weaker statistics. Nevertheless, we consider the pound growth as an opportunity for its sales. Well, there are no reasons for the pound optimism. Brexit pauses until the new Prime Minister will be chosen this will happen no earlier than July. And it is not a fact that it will be a positive sign for the pound. So, you can re-open trade a little bit later in case of os stop-loss execution. The main event of the day will be the inflation statistics publication from the United States. The output of data below forecasts or below 2% (the Feds target ), would be a pretty strong signal in favor of dollar sales. Recall, in a week the Fed’s decision on the parameters of monetary policy in the United States will be announced and it is very likely that the rate will be lowered this month. Perhaps even by 0.5%. Today's data will have an impact on it. Our trading preferences for today are as follows: we will continue to look for points for the sales of the US dollar against the Japanese yen, as well as the euro, sales of oil and the Russian ruble, as well as buying of gold and sales of GBPUSD.
Long
by Trade24Fx
3
DXY TNX spreadThe USD would ususally move according to the USD strength i.e. DXY. Lately, it hasn't been the case. There could be multiple theories around it..from fundamental to political to technical. I am wondering what gives! One plausible explanation is may be the Fed policy has gone beyond what's needed. But then again, it's pretty much set in stone now! Is it a coincidence that this is happening around G20 and North Korea missile launch? Or may be Fed has something to do with it? But then again..Fed is never really out of the news. They are taking backseat most in last 10 years though. And it's good. So what gives? Is it Trump? He alienated Yellen and now she has made sure that the policy won't change even if she is removed. That fiscal stimulus better be coming soon.
TVC:DXY
by Kaustubh