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EURUSD stays pressured toward 1.0600 amid risk-aversionEURUSD extends the previous day’s pullback from a four-month-old support-turned-resistance as sour sentiment underpins the US Dollar demand early Friday. In doing so, the Euro pair takes clues from the bearish MACD signals while paying little attention to the RSI (14) line suggesting a weak support for the current momentum. With this, the quote appears well set to revisit the latest trough surrounding the 1.0600. However, the 78.6% Fibonacci retracement of the pair’s October-December upside, near 1.0595, will join the downbeat RSI conditions to challenge the bears afterward. Should the sellers keep the reins past 1.0595, 1.0520 and 1.0495 may act as intermediate halts before directing the prices toward the previous yearly bottom surrounding 1.0450. Meanwhile, the aforementioned previous support line from December 2023, close to 1.0675, guards the immediate recovery of the EURUSD pair ahead of the 10-day Exponential Moving Average (EMA) level near 1.0690. In a case where the Euro pair rises past 1.0690, and also crosses the 1.0700 threshold, the early-month bottom around 1.0725 and 50% Fibonacci retracement level near 1.0800 will challenge the upside moves. Above all, the bull’s dominance needs validation from a convergence of the four-month-old resistance line and 38.2% Fibonacci retracement level, around 1.0880. To sum up, the EURUSD pair is likely to remain weak but the room toward the south appears limited.
by MTradingGlobal
USDJPY eyes further losses, 112.80 is the keyUSDJPY extends pullback from a four-year high, recently failed to keep the bounce off 113.50, amid downbeat MACD and RSI. That said, the yen pair’s further downside will poke the 100-DMA level of 113.25 but the previous resistance line from March 2021, around 112.80, could challenge the bears afterward. It should be noted, however, that a clear downside break of 112.80, won’t hesitate to direct the pair sellers towards tops marked in early October and May 2021, respectively around 112.00 and 111.65. Meanwhile, recovery moves can initially aim for the three-week-old resistance line near 114.50 before challenging the 20-DMA level surrounding 114.85. If USDJPY prices rise past 114.85, November 2021 peak near 115.50 will be in focus as it holds the key to the pair’s further advances targeting a fresh high of 2022, currently around 116.35. To sum up, USDJPY is expected to witness further declines but the bullish trend remains intact until the quote stays beyond 112.80.
Short
by MTradingGlobal
NZDUSD drops back towards 0.6900 despite RBNZ rate hikeRBNZ leads the developed-world central banks with a 0.25% rate hike on Wednesday but couldn’t lift the NZDUSD prices. The reason can be linked to the broad US dollar strength amid risk-off mood and firmer Treasury yields. Technically, the Kiwi pair’s failures to cross the 10-DMA hurdle joined the bearish MACD signals and downward sloping RSI line to weigh on the quote. However, a horizontal area established from mid-June near 0.6915-25, becomes the key barrier for the pair’s further downside towards an ascending support line from August 20, around 0.6870. Also acting as a support is the latest swing low close to 0.6860 that can question the sellers before offering the yearly bottom of 0.6805. On the contrary, a clear upside break of the 10-DMA, at 0.6857 by the press time, won’t be enough for the NZDUSD bull’s welcome as a three-week-old resistance line near 0.7015 holds the gate for entry. In a case where the pair cross the trend line resistance, the 0.7080-85 region comprising multiple levels marked since late July may act as a buffer before propelling the quote to the last month’s high near 0.7170.
Short
by MTradingGlobal
USDCAD keeps rebound from 100-day EMA ahead of BOCUS dollar bulls dominate markets following the return of the American and Canadian traders on Tuesday, portraying the heaviest daily gains of the greenback in three weeks. The same portrayed the USDCAD bounce off 100-day EMA, keeping the recovery moves ahead of the key Bank of Canada (BOC) monetary policy meeting. Given the firmer RSI and fundamental scopes for the USD’s further upside, the pair buyers seem to aim for the late August tops surrounding 1.2710 by the press time. Following that, July’s high of 1.2806 and the yearly peak surrounding 1.2950 should lure the bulls. On the contrary, a daily closing below 100-day EMA surrounding the 1.2500 threshold needs validation from 50% Fibonacci retracement of June-August upside and late July’s bottom, respectively near 1.2475 and 1.2420, to please the USDCAD bears. If the pair sellers keep reins below 1.2420, the quote becomes vulnerable to drop towards the June 23 trough close to 1.2250. Overall, the Bank of Canada (BOC) is likely to repeat its hawkish bias and provide hints of tapering. However, any disappointment will be received with firmer USD to entertain the bulls.
Long
by MTradingGlobal
GBPUSD teases head-and-shoulder confirmation on H1With the recent risk-off mood favoring the US dollar’s strength, GBPUSD breaks the support line of a short-term head-and-shoulders bearish chart pattern on the hourly (H1) play. However, a sustained close below the neckline, currently around 1.3645 will be needed to confirm the south-run targeting the previous week’s low near 1.3520. However, the 1.3600 round-figure can probe the bears and so do the monthly employment data from the UK for December. On the contrary, upbeat UK jobs report and the pair’s failures to stay below 1.3645 will have to cross 200-bar SMA, at 1.3652 now, to attack the weekly resistance line near 1.3665. It’s worth mentioning that the pair’s sustained trading above 1.3665 enables it to challenge the monthly top surrounding 1.3745 wherein the 1.3700 acts as an intermediate halt. Overall, the risk aversion wave takes clues from the delay in the US fiscal stimulus and Sino-American tension. As a result, further weakening of the quote can be expected despite recently positive catalysts from the UK.
Short
by MTradingGlobal