Get started

Fed

GBPUSD hovers above 1.2770 resistance-turned-support on key dayGBPUSD regains 1.2800 after snapping a six-day losing streak, making rounds to 1.2820 heading into Tuesday’s European session. In doing so, the Cable pair portrays the market’s cautious mood ahead of the all-important UK employment data and the US Consumer Price Index (CPI) figures. That said, the overbought RSI (14) line joins the pre-data anxiety to test the Pound Sterling buyers. However, a seven-month-old resistance line, now support around 1.2770, challenges the immediate downside of the quote. Even if the pair drops beneath the resistance-turned-support of 1.2770, the 50-SMA level of 1.2690 and convergence of the 100-SMA and 200-SMA, close to 1.2585, will act as the final defense of the buyers before giving control to the bears. Meanwhile, the GBPUSD pair’s sustained run-up needs strong UK data, as well as softer US inflation to entertain the keep the Pound Sterling buyers on board. Even so, the yearly high marked on last Friday, around 1.2895, will be a tough nut to crack for the Cable buyers. In a case where the pair remains firmer past 1.2895, backed by the positive fundamentals, the quote could aim for the tops marked in July 2023 near 1.2995 and 1.3140 in that order. To sum up, the GBPUSD pair buyers keep the reins on the day of releases of the key employment and inflation data from the UK and the US.
by MTradingGlobal
USDJPY probes four-day losing streak despite upbeat Japan GDPUSDJPY seesaws at the lowest level in five weeks as bulls and bears jostle after the biggest weekly loss in eight months. In doing so, the Yen pair fails to justify better-than-previous Japanese GDP while challenging the four-day losing streak. That said, the oversold RSI (14) conditions and the 200-SMA support of near 146.30-25 also challenge the quote’s further downside. Following that, the mid-2023 peak of around 145.00 could act as an intermediate halt before directing the bears toward the late 2023 bottom of 140.25. Meanwhile, the USDJPY pair’s rebound needs validation from the 100-SMA level of 147.60, as well as the support-turned-resistance line stretched from early January, close to 148.80 at the latest. However, the 150.00 threshold and multiple tops surrounding 151.00 could check the Yen pair buyers afterward. Also acting as the upside filter is the previous yearly high of 151.90 and a one-year-old previous support line, now resistance around 152.80. Overall, the USDJPY pair’s sustained trading beneath the key technical supports, now resistances, join the bearish MACD signals to keep sellers hopeful. However, the oversold RSI and nearness to the 200-SMA might challenge the quote’s short-term downside.
by MTradingGlobal
Gold eases from record top, focus on $2,150, US NFPGold price snaps seven-day winning streak while retreating from the all-time high (ATH) of nearly $2,165 to $2,156 early Friday. In doing so, the precious metal portrays the consolidation of recent gains ahead of the all-important US employment details for February amid the overbought RSI (14) conditions. It’s worth noting, however, that the bullion still trades above the immediate resistance-turned-support, namely the previous record high marked in 2023 around $2,150. Hence, the XAUUSD sellers need validation from the US jobs report as well as the $2,150 to retake control. Following that, a quick fall toward the late December 2023 peak of around $2,090 and the $2,065-64 support zone can’t be ruled out. Even so, the commodity bears need to remain cautious unless the quote offers a daily closing beneath three-week-old rising support and the 100-SMA, respectively near $2,050 and $2,022. On the flip side, the Gold buyers stay in the driver’s seat and can aim for a 10-month-old ascending resistance line, close to $2,185 by the press time, during further upside. Should the quote manage to ignore the RSI conditions and remain firmer past $2,185, the $2,200 round figure will act as an extra filter toward the north. It’s worth noting that the XAUUSD’s successful trading above $2,200 enables buyers to aim for the 78.6% Fibonacci Extension (FE) of its moves between 2018 and 2022, around $2,336. Overall, Gold price remains on the bullish trend but a pullback appears imminent unless the scheduled data fail to inspire US Dollar’s rebound.
OANDA:XAUUSD
by MTradingGlobal
EURUSD pullback appears imminent but bulls stay hopefulEURUSD bulls take a breather at a six-week high as a rising wedge challenges the quote’s further upside. Apart from the stated bearish chart formation’s top line, the overbought RSI (14) line and sluggish MACD signals also challenge the Euro pair’s further advances. As a result, a pullback toward the 38.2% Fibonacci retracement of the pair’s December 2023 to February 2024 downturn, close to 1.0865, appears imminent. However, a convergence of the 100-bar and 200-bar Exponential Moving Average (EMA), as well as the aforementioned wedge’s bottom line, around 1.0830, appears a tough nut to crack for the sellers. In a case where the quote drops below 1.0830, it confirms a bearish chart pattern suggesting a theoretical target of 1.0610. During the likely fall, the lows marked in late 2023 and in the previous month, respectively near 1.0725 and 1.0700, could offer a breathing space to the bears. On the contrary, the EURUSD pair’s successful rejection of the rising wedge formation, by a clear upside break of the 1.0900 hurdle, could help it challenge the late January peak surrounding 1.0930. Following that, the 1.1000 psychological magnet and the yearly high of near 1.1040 and late 2023 top around 1.1140 will lure the Euro buyers. Overall, the EURUSD pair is likely to witness a pullback amid a lack of more incentive for the bulls. That said, the bearish trend, however, remains off the table until the quote stays beyond 1.0830.
by MTradingGlobal
GBPUSD bulls jostle with multi-month-old resistance lineGBPUSD rose to the highest level in a month the previous day but failed to offer a daily closing beyond a downward-sloping resistance line from July 2023. In addition to the inability to cross the key trend line resistance, softer prints of the UK PMIs and sluggish MACD signals also challenged the Cable pair buyers. However, the quote’s capacity to remain firmer past the 200-bar Exponential Moving Average (EMA) and the firmer RSI (14) line push back the bears. Hence, the Pound Sterling bulls are likely to keep the reins and can overcome the immediate resistance line, close to 1.2700 by the press time, but its further advances need validation from the late 2023 swing high of around 1.2830 and the MACD signals to confirm the bullish trend. In that case, tops marked on July 23 and 13, respectively around 1.3000 and 1.3140, will be in the spotlight. Meanwhile, the GBPUSD pair’s pullback moves remain elusive beyond a one-month-old rising support line, close to 1.2600. Following that, the Cable bears will need confirmation from the 200-EMA level of 1.2530 on a daily closing basis to retake control. Should that happen, the quote’s gradual downward trajectory toward highs marked in November and October of 2023, around 1.2430 and 1.2335 in that order, can’t be ruled out. Overall, the GBPUSD pair remains on the bull’s radar despite the latest struggle with the key resistance line. Apart from the technical details, the cautious mood ahead of the US ADP Employment Change and Fed Chair Jerome Powell’s Testimony also appear crucial to determine near-term moves of the Pound Sterling.
by MTradingGlobal
USDJPY bulls struggle but bears need validation from 149.00USDJPY reverses the first weekly loss in five while printing mild gains around 150.50 early Tuesday. In doing so, the Yen pair seesaws near a three-week-old horizontal resistance surrounding 150.90-151.00. It’s worth noting that the lackluster RSI and sluggish MACD signals suggest further grinding of the quote below the stated key resistance. The bearish momentum, however, appears less likely until the prices stay beyond a convergence of the 200-SMA and a two-month-long rising support line, close to 149.00. Apart from the 149.00 support confluence, January’s high of near 148.80 will also try to challenge the Yen pair sellers before giving them control. Meanwhile, an upside break of the 150.90-151.00 resistance region will allow the USDJPY buyers to aim for the double tops marked during late 2022 and 2023 near 152.00. It should be observed that the Yen pair’s run-up beyond the 152.00 hurdle highlights the 160.00 psychological magnet and the year 1990 peak of around 160.40 for the bulls. In that case, the overbought RSI line and likely adjustments in the Bank of Japan’s (BoJ) monetary policy will challenge the pair’s further upside. Overall, the USDJPY pair’s upside momentum runs out of steam but the bearish move is yet to gain acceptance and hence needs validation from the key support of near 149.00, as well as the US/Japan fundamental catalysts scheduled for publishing during this week.
by MTradingGlobal
EURUSD snaps three-day losing streak but remains vulnerableEURUSD stays defensive around 1.0820 as it rebounds from the 50% Fibonacci ratio of the October-December 2023 upside. In doing so, the Euro pair prints the first daily gain in four while approaching the 200-SMA resistance surrounding 1.0830. Not only the 200-SMA but the 50-SMA level of around 1.0870 also challenges the pair buyers. Following that, the lat January swing high of around 1.0930 and the 1.1000 threshold will be the final defenses of the bears before welcoming the bulls. On the contrary, the 50% and 61.8% Fibonacci ratios around 1.0795 and 1.0710 respectively act as the strong downside support levels for the EURUSD. Also acting as the downside filter is the monthly low of around 1.0695, a break of which will divert the Euro sellers toward the October 2023 swing low of around 1.0450. That said, bullish MACD signals and the upbeat RSI conditions also challenge the quote’s further downside past the Golden Fibonacci Ratio, namely the 61.8% Fibonacci ratio. Overall, the EURUSD bears appear taking the rest but are still in the game even if the quote’s downside past 61.8% Fibonacci ratio needs a strong reason to lure the sellers. As a result, today’s Eurozone inflation numbers and PMI data will be important to watch for clear directions.
by MTradingGlobal
Bull cross keeps Gold buyers hopeful ahead of Fed InflationThe price of spot Gold (XAUUSD) defends the previous day’s rebound from a weekly low despite lacking momentum around $2,035 early Thursday. In doing so, the yellow metal portrays the market’s anxiety ahead of the US Federal Reserve’s (Fed) preferred inflation gauge, namely the US Core Personal Consumption Expenditure (PCE) Price Index. It should be noted that the sluggish MACD signals and steady RSI near 50.00 also depict the trader’s lack of conviction. However, the 50-SMA pierces off the 200-SMA from below and portrays a bullish moving average crossover, namely the Bull Cross, which in turn suggests a short-term upside bias of the market. The same highlights $2,042 as an immediate resistance ahead of an eight-week-old horizontal area surrounding $2,062-66 that holds the key to the bullion’s further advances. In a case where the quote remains firmer past $2,066, the late 2023 peak of around $2,088 and the $2,100 round figure will lure the XAUUSD bulls. On the flip side, an area comprising the 50-SMA and the 200-SMA, around $2,028-26, restricts short-term declines in the Gold price. Following that, the $2,010 level and the previous monthly low of around $2,001 could test the XAUUSD bears before giving them control. In that case, the monthly bottom surrounding $1,984 and the late 2023 trough near $1,973 will be imperative to watch as the final defenses of the buyers. Overall, the Gold buyers are in command ahead of the key US data but the upside room appears limited.
OANDA:XAUUSD
by MTradingGlobal
NZDUSD drops 1.0% on RBNZ’s dovish halt, focus on 0.6080-70NZDUSD marks the biggest daily loss in two weeks as the Reserve Bank of New Zealand (RBNZ) announces monetary policy decision. That said, the RBNZ not only pushed back the concerns about rate hikes while keeping the practices unchanged but Governor Adrian Orr signaled the end of the rate hike trajectory in his press conference and drowned the New Zealand Dollar (NZD). With this, the quote extends the previous day’s U-turn from the 50-SMA hurdle while justifying a looming bear cross on the MACD. However, a convergence of the 200-SMA, an upward-sloping trend line from mid-November 2023 and a 50% Fibonacci ratio of the Kiwi pair’s October-December 2023 upside, near 0.6080-70, appears a tough nut to crack for the bears. Should the quote manage to remain bearish past 0.6070, the odds of witnessing a slump toward the 0.6000 psychological magnet can’t be ruled out. Meanwhile, the 38.2% Fibonacci retracement level and the 50-SMA will restrict the NZDUSD pair’s corrective bounce respectively near 0.6150 and 0.6180. Following that, the 0.6200 round figure and the monthly high of around 0.6220 will lure the Kiwi pair buyers. It should be noted that the quote’s sustained run-up beyond 0.6220 will need validation from the 0.6280 and the 0.6300 upside hurdles before targeting the late 2023 peak of around 0.6370. Overall, the RBNZ disappoints the Kiwi bulls and lures the pair bears but the downside room appears limited.
by MTradingGlobal
USDJPY bulls lack momentum as US, Japan inflation clues loomUSDJPY rose in the last four consecutive weeks even if the US Dollar Index (DXY) snapped a five-week uptrend, amid an increase in the near-term US Treasury bond yields and chatters about a delay in the Bank of Japan’s (BoJ) delay in ending the ultra lose monetary policy. It’s worth noting, however, that the technical signals are against the Yen pair buyers as the nearly overbought RSI (14) line joins the bearish MACD conditions. Also challenging the upside momentum is the quote’s retreat from a week-old horizontal resistance around 150.80. Even if the pair crosses the immediate upside hurdle, he previous yearly high of 151.90 and an ascending resistance line from late December 2023, forming part of a rising wedge bearish chart formation near 153.80, will be tough nuts to crack for the bulls. On the contrary, the USDJPY pair’s pullback remains elusive unless the price stays above the lower line of a 10-week-old rising wedge bearish chart formation’s bottom line, close to 149.80 at the latest. Following that, a quick fall to January’s top surrounding 148.80 can’t be ruled out. However, the 100-bar and 200-bar Exponential Moving Averages (EMAs) will test the Yen pair bears near 147.10 and 145.00 respectively before directing the quote toward the theoretical target of the rising wedge confirmation, namely around 139.40. It should be It should be observed that the 140.00 threshold and the mid-2023 swing low of near 137.25 act as additional downside filters to watch. Overall, the USDJPY pair lacks upside momentum but the bears need confirmation from the short-term rising wedge chart formation before taking control. Also important are the initial inflation clues from Japan and the US.
by MTradingGlobal
200-SMA tests EURUSD’s biggest weekly gain in nineEURUSD seesaws between a one-week-old rising support line and the 200-SMA resistance after rising to a three-week high the previous day. In doing so, the Euro pair portrays the market’s indecision ahead of the second-tier German statistics. Even so, the major currency pair is on the way to posting the biggest weekly gain in 2024. That said, the sluggish MACD signals and steady RSI (14) line favor the pair’s latest run-up, which in turn suggests brighter chances of the quote’s run-up beyond the 200-SMA hurdle of around 1.0840. However, a horizontal area comprising the monthly high of near 1.0900 will be a tough nut to crack the pair buyers afterward. Should the quote manage to remain firmer past 1.0900, a quick run-up toward the 1.1000 threshold becomes imminent. On the flip side, a clear break of the aforementioned support line, close to 1.0800 at the latest, won’t be an open signal for the EURUSD bull’s entry as a resistance-turned-support line from early January, near 1.0755 as we write, will test the quote’s further declines. In a case where the Euro bears keep the reins past 1.0755, the monthly low of near 1.0700 and the mid-2023 bottom of 1.0635 will be in their radars. Overall, the EURUSD is likely to remain firmer but the upside past 1.0900 becomes necessary to reverse the quote’s previous fall.
by MTradingGlobal
Gold buyers attack 50-SMA with eyes on Fed MinutesGold price remains firmer for the fifth consecutive day while extending the previous week’s rebound from the 100-SMA within a nine-week-old bearish trend channel. In doing so, the XAUUSD buyers prod the 50-SMA upside hurdle while keeping eyes on the Federal Open Market Committee (FOMC) Meeting Minutes, up for publishing late Wednesday. Given the quote’s sustained rebound from the key SMA, backed by the upbeat RSI (14) line and the bullish MACD signals, the price is more likely to cross the immediate hurdle surrounding $2,030, which in turn will allow buyers to aim for the aforementioned channel’s top line of near $2,052. However, a clear rejection of the bearish chart pattern, via sustained trading past $2,052, will open doors for the metal’s run-up toward the monthly high of near $2,066 and then the late December peak of around $2,088. Meanwhile, hawkish Fed Minutes could derail the latest recovery momentum of the Gold price and drag it back toward the $2,000 psychological magnet. Though, the 100-SMA and bottom line of the previously stated channel, respectively near $1,997 and $1,986, would challenge the XAUUSD bears afterward. Should the quote remain bearish past $1,986, the late December swing low of around $1,973 will act as the final defense for the buyers before directing prices toward the November 2023 bottom surrounding $1,931. Overall, the Gold price is likely to remain firmer but the bearish chart pattern and looming threat to the commodity bulls from the FOMC Minutes challenges the hopes of witnessing more upside.
OANDA:XAUUSD
by MTradingGlobal
USDCAD rises within rising wedge ahead of Canada inflationUSDCAD prints a three-day winning streak despite mildly bid Oil price, bracing for the monthly Canada inflation numbers within a seven-week-old rising wedge bearish chart formation. In doing so, the Loonie pair extends last week’s rebound from a 200-bar Exponential Moving Average (EMA) backed by the price-positive RSI conditions and a looming bull cross on the MACD. With this, the quote is likely to extend the latest run-up toward a month-long horizontal resistance surrounding 1.3535-40. Following that, the stated wedge’s top line, close to the 1.3600 threshold, will be in the spotlight. In a case where the pair price remains firmer past 1.3600, it defies the bearish chart pattern and enables the buyers to aim for the late 2023 highs. Meanwhile, a convergence of the 200-EMA and the aforementioned rising wedge’s lower line, near 1.3465 by the press time, puts a floor under the USDCAD price. Should the quote break the stated key support, it confirms the bearish chart formation and highlights a theoretical target of 1.3050. However, lows marked during late January and December, around 1.3360 and 1.3180 respectively, could test the Loonie pair bears during the fall past 1.3465. Additionally acting as a downside filter is the 1.3000 psychological magnet. Overall, the USDCAD is likely to extend its recent run-up within a bearish chart formation unless today’s Canada data and the latest increase in Oil price, Canada’s key export, propel the Canadian Dollar (CAD).
by MTradingGlobal
USDJPY recovers within two-month-old rising wedgeUSDJPY snaps a two-day losing streak early Friday while challenging the previous day’s rising wedge bearish chart pattern’s confirmation. In doing so, the Yen pair justifies an upbeat RSI (14) line, as well as an impending bull cross on the MACD. It’s worth noting, however, that a clear upside break of 150.50 support-turned-resistance becomes necessary to defy the downside signals. Following that, an ascending trend line from January 31, also forming part of a short-term rising wedge near 151.70, will lure the bulls. It’s worth noting that the upper line of a broader rising wedge, close to 152.40 at the latest, appears the last defense of the pair sellers before directing the quote toward the June 1990 swing high of around 155.80. Meanwhile, the USDJPY pair’s failure to cross the 150.50 immediate upside hurdle will drag it back below the 150.00 threshold. In that case, a convergence of the 100-SMA and the aforementioned wedge’s bottom line surrounding 148.40 will be a crucial level to watch for the pair sellers as a clear break of that will open doors for a theoretical fall toward 137.90. During the fall, the 200-SMA level of 147.00, monthly low of near 145.90 and December’s trough surrounding 140.25 will act as intermediate halts. Overall, USDJPY remains on the bear’s radar despite the latest recovery move.
by MTradingGlobal
EURUSD rebound is elusive, ECB’s Lagarde, US Retail Sales eyedEURUSD struggles to defend the previous day’s corrective bounce from a three-month low early Thursday. In doing so, the Euro pair seesaws around the key 1.0730-20 support zone comprising levels marked since early November. It’s worth noting that the RSI (14) line’s gradual recovery from the oversold territory joins the bearish MACD signals and the early February’s downside break of the key technical levels to keep the sellers hopeful. That said, a fresh selling needs validation from the latest trough surrounding 1.0695 before directing the quote toward the November 10 swing low of around 1.0655. Following that, the early October 2023 swing high of around 1.0640 will be the last defense of the buyers before giving control to the bears. On the flip side, the support-turned-resistance line stretched from early October, around 1.0770 by the press time, guards the immediate recovery of the EURUSD pair. Even if the quote manages to cross the 1.0770 hurdle, it won’t be capable of luring the bulls as the 100-SMA hurdle of around 1.0800 will test the upside momentum. It’s worth noting, however, that any upside momentum must stay beyond the 1.0825-30 resistance confluence comprising the 200-SMA and a five-week-old falling trend line to convince the markets of a bullish trend. Overall, the EURUSD pair remains well beneath the key support-turned-resistances and hence any recovery below 1.0830 remains unconvincing.
by MTradingGlobal
GBPUSD bears keep 1.2500 on radar, UK inflation eyedGBPUSD licks its wounds around 1.2600 early Wednesday as traders await the UK inflation clues for January. That said, the Cable pair marked a stellar move the previous day, initially rising to a seven-day high before posting the biggest daily loss in a week while reversing from the 50-bar Exponential Moving Average (EMA). It should be noted that Tuesday’s reversal from 50-EMA also defends the Pound Sterling’s early month break of a 12-week-old rising support line, now resistance around 1.2685. Additionally, the bearish MACD signals and an absence of the oversold RSI (14) also keep the pair sellers hopeful. However, a convergence of the 200-EMA and multiple levels marked since early December 2023, close to 1.2520-2500, appears a tough nut to crack for the pair bears. In a case where the prices drop below 1.2500, the mid-November 2023 swing low of around 1.2375 will be in the spotlight. Alternatively, the strong UK inflation numbers could allow the GBPUSD pair to have another battle with the 50-EMA and the aforementioned support-turned-resistance, respectively near 1.2635 and 1.2675. If at all the Cable bulls manage to keep the reins past 1.2675, a downward-sloping resistance line from January 12, close to 1.2770 by the press time, will be the final defense of the pair sellers. Following that, the late 2023 peak of near 1.2830 and the 1.3000 psychological magnet will lure the Pound Sterling buyers. Overall, the GBPUSD pair remains bearish unless staying below 1.2675, especially when the US inflation data appears more lucrative to the Fed hawks. Even so, the Bank of England (BoE) officials have been optimistic of late and hence today’s UK inflation clues will be closely observed for clear directions.
by MTradingGlobal
Gold teases sellers above $2,000 as US inflation loomsGold price stays pressured for the fifth consecutive day, licking its wounds around $2,018 early Tuesday, as traders brace for the all-important US Consumer Price Index (CPI) data for January, scheduled for release later in the day. In doing so, the XAUUSD justifies the previous day’s downside break of a two-month-old rising support line, now immediate resistance surrounding $2,021. Also keeping the bullion sellers hopeful is the impending bear cross on the MACD. It’s worth noting, however, that the pre-data anxiety joins the nearly oversold RSI to challenge the precious metal bears. That said, January’s low of around $2,000 appears immediate support to watch for the metal sellers during the further downside. However, a downward-sloping trend line from December 15, 2023, forming part of a broad bearish channel, will challenge the bears near $1,990 afterward. On the flip side, a surprise recovery of the Gold Price needs to stay beyond the support-turned-resistance line of nearly $2,021 to convince the intraday buyers. Even so, the 200-SMA surrounding $2,037 could test the XAUUSD bulls before giving them control. In a case where the precious metal remains firmer past the key SMA hurdle, the top line of an aforementioned channel, close to $2,058 at the latest, will precede a six-week-old horizontal resistance of $2,066 to gain the market’s attention. Overall, the Gold Price is likely to extend the latest fall but the downside room appears limited. Also, the US inflation numbers need to defend the Fed’s efforts to push back the rate cut bias to keep the XAUUSD bears hopeful.
OANDA:XAUUSD
by MTradingGlobal
NZDUSD bulls can ignore recent pullbackNZDUSD drops the most among the G10 currency pairs while reversing the previous weekly gains, the first in four, as market players show a lack of conviction in the hawkish speech from Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr. It’s worth noting that a long holiday season in China also allowed the Kiwi pair traders to consolidate the previous week’s upside ahead of the US inflation data, scheduled for release on Tuesday. However, Friday’s falling wedge confirmation and bullish MACD signals, as well as the upbeat RSI (14) line, favor the quote’s gradual rise unless it slips back beneath the 0.6100 resistance-turned-support. Even so, the 100-SMA and the stated bullish chart pattern’s lower line, respectively near 0.6075 and 0.6030, quickly followed by the 0.6000 psychological magnet, will challenge the pair sellers before giving them control. Meanwhile, fresh buying in the NZDUSD pair can wait for a clear upside break of a five-week-old horizontal resistance surrounding 0.6175-80. Following that, the mid-January swing high of around 0.6280 and the late 2023 peak of near 0.6370 will lure the Kiwi pair buyers. In a case where the quote remains firmer past 0.6370, the theoretical target of the falling wedge breakout, namely around 0.6450, will be in the spotlight. Overall, the NZDUSD pair’s latest retreat becomes less attractive unless backed by the downbeat US inflation data, as well as a sustained trading beneath 0.6100.
by MTradingGlobal
GBPUSD struggles with support-turned-resistanceGBPUSD snapped a two-day winning streak on Thursday while retreating from a previous support line stretched from November 22. It’s worth noting, however, that late Thursday’s corrective bounce in the Cable pair renewed bullish bias about the quote, especially amid the upbeat RSI conditions. With this, the support-turned-resistance line surrounding 1.2650 challenges the Pound Sterling buyers. Apart from that, a convergence of the 100 and 200-bar Exponential Moving Average (EMA), around 1.2660 by the press time, also acts as a tough nut to crack for the bulls. In a case where the prices remain firmer past 1.2660, a quick run-up toward a one-month-old resistance line, close to 1.2770 at the latest, can’t be ruled out. Meanwhile, the GBPUSD pair sellers need validation from the previous day’s low of near 1.2570 to take fresh positions. Even so, a two-month-old horizontal support zone surrounding 1.2520–2500 will challenge the quote’s downside momentum. Following that, the mid-November 2023 swing low of around 1.2370 will act as the final defense of the Cable buyers before giving control to the bears. Overall, the GBPUSD pair buyers flex muscles ahead of the key week comprising a slew of UK and US data.
by MTradingGlobal
Gold again retreats from 200-SMA but bears need validationGold price fades bounce off a two-month-old rising support line, failing to cheer the US Dollar’s weakness, as the 200-SMA hurdle again challenges the metal buyers ahead of the second-tier employment clues from the US. Not only the 200-SMA resistance surrounding $2,040 and the pre-data anxiety, steady RSI and sluggish MACD signals also challenge the XAUUSD buyers. Even if the quote manages to cross the $2,040 upside hurdle, a five-week-long horizontal resistance zone of around $2,065 will be a tough nut to crack for the bullion buyers before retaking control. Following that, a run-up toward the late December 2023 peak of near $2,088 will be quick to witness on the chart. Meanwhile, an ascending support line from early December, close to $2,020 by the press time restricts the short-term downside of the Gold price. In a case where the XAUUSD remains bearish past $2,020, the mid-January swing low of near the $2,000 threshold will return to the charts. It’s worth noting, however, that the quote’s weakness past $2,000 makes it vulnerable to slump toward the two-month low of nearly $1,973 before challenging the November 2023 trough surrounding $1,930. Overall, Gold Price remains pressured on a short-term basis but the sellers need validation from technical and fundamental perspectives.
OANDA:XAUUSD
by MTradingGlobal
USDJPY portrays bullish consolidation, further downside expectedOn Tuesday, the USDJPY pair snapped a two-day winning streak while reversing from a 13-day-old horizontal resistance surrounding 148.80-90. The pullback move also justifies the upbeat RSI and bearish MACD signals. With this, the Yen pair is likely to decline further toward the 50-bar Exponential Moving Average (EMA) level of nearly 146.60. However, the 100-EMA of 146.20 and the monthly low of 145.90 will challenge the sellers afterward, suggesting another U-turn in the price. In doing so, the quote manages a fortnight-long trading range that consolidates the pair’s gains marked since late December. Meanwhile, USDJPY buyers remain off the table unless they witness a daily closing beyond the aforementioned horizontal resistance of around 148.80-90. Even so, the late November 2023 swing high of around 149.80 and the 150.00 threshold will test the Yen pair’s upside moves. In a case where the bulls keep the reins past 150.00, the odds of witnessing the quote’s run-up toward the previous yearly high of around 151.90 can’t be ignored. Overall, USDJPY remains in the bullish consolidation mode and hence likely witnessing further downside. However, the yields and the US Dollar moves are telling a different story and may test the sellers, which in turn requires caution on the part of the pair traders.
by MTradingGlobal
AUDUSD bears can ignore post-RBA rebound from 11-week lowAUDUSD prints the first daily gain in three while bouncing off the lowest level since mid-November after the Reserve Bank of Australia (RBA) kept the benchmark rates unchanged. The corrective bounce also justified the RSI (14) line’s rebound from the oversold territory. However, the bearish MACD signals and the previous week’s confirmation of the Head-and-Shoulders (H&S) bearish chart pattern keeps the Aussie pair sellers unless the quote jumps back beyond a convergence of the neckline and the 100-SMA, around 0.6525-30 by the press time. It’s worth noting, however, that the quote’s sustained trading beyond 0.6530 isn’t an open invitation to the Aussie pair buyers as multiple tops marked during late January and early February near 0.6620 and the 50-SMA hurdle of 0.6650 will act as the final defense of the sellers. Meanwhile, the AUDUSD pair’s fresh downside needs validation from the latest multi-day bottom surrounding 0.6470 and the mid-November swing low of around 0.6450. Following that, the odds of witnessing the Aussie pair’s quick fall toward the November 10 swing low of 0.6338 and then to the theoretical target of the H&S, namely the 0.6190 can’t be ruled out. That said, the previous yearly low marked in October around 0.6270 may act as an intermediate halt during the fall between 0.6338 and 0.6190. To sum up, the AUDUSD pair’s recovery remains off the table despite the pair’s latest gains.
Editors' picks
by MTradingGlobal
1
EURUSD slides beneath key support as Fed’s Powell defends hawksEURUSD dropped to the lowest level in two months after Federal Reserve (Fed) Chairman Jerome Powell firmly pushed back the March rate cut. The same allowed the Euro pair to keep the previous day’s downside break of a 1.0810 support confluence comprising the 200-bar Exponential Moving Average (EMA) and a four-month-old rising trend line. Additionally keeping the sellers hopeful are the bearish MACD signals. However, the below 50.0 level of the RSI (14) line raises doubts about the downside momentum and hence the bears need validation from December’s low of around 1.0720 to tighten the grips. Following that, October’s high of 1.0695 and early November swing low surrounding 1.0655 will be in the spotlight. Alternatively, the EURUSD rebound needs acceptance from the support-turned-resistance confluence of around 1.0810 and the US ISM Services PMI. Even so, a downward-sloping resistance line from early January, close to 1.0875 at the latest, quickly followed by the 1.0900 threshold, will act as the final defense of the Euro sellers before giving control to the bulls. It’s worth noting, however, that the quote’s successful trading above 1.0900 enables the buyers to aim for the 1.1000 psychological magnet and November’s peak near 1.1020. Overall, EURUSD teases bears on hawkish Fed concerns but the road toward the south appears long and bumpy.
by MTradingGlobal