Markets Roundup by Scandinavian Capital Markets

Discussion in 'Technical Analysis' started by SCM Forex, Feb 5, 2018.

  1. SCM Forex

    SCM Forex Trader

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    Gold inched lower on Monday, decreasing the price of yellow metal to less than $1350.00 an ounce after some key economic releases. The technical bias remains bullish because of a higher high in the ongoing upside move.

    XAU/USD Technical Analysis

    As of this writing, the precious metal is being traded near $1331.46 an ounce. A hurdle can be noted near $1365, a key psychological level ahead of $1373, the high of the last major upside rally on the daily chart and then $1400, the psychological level. A break and daily closing above the $1400 level shall trigger renewed buying interest, validating a rally towards the $1440 resistance zone.
    [​IMG]
    On the downside, a support may be noted around $1311, an immediate horizontal support ahead of $1300, the psychological level as well as another key horizontal support area and then $1250, a major psychological number. The technical bias shall remain bullish as long as the $1200 support area is intact.

    US Payrolls Report

    The ADP national employment report showed private sector employment rose by 234,000 jobs in January, beating economists’ expectations for an increase of only 185,000. December’s payrolls count was revised down to 242,000 from 250,000.

    Manufacturing added 12,000 jobs last month and construction payrolls increased 9,000 despite bitterly cold temperatures in many parts of the country. There were also widespread job gains in the private services sector.

    The ADP report is jointly produced with Moody’s Analytics. It, however, has a poor record predicting the private payrolls component of the government’ more comprehensive employment report. The Department of Labor will publish January’s employment report on Friday.

    Trade Idea

    Considering the overall technical and fundamental outlook, selling the precious metal around current levels appears to be a good strategy in short to medium term.
     
  2. SCM Forex

    SCM Forex Trader

    12
    0
    6
    The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Tuesday, increasing the price of NZDUSD to more than 0.7250 following some key economic releases. The technical bias shall remain bullish because of a higher high in the ongoing downside move.

    NZD/USD Technical Analysis

    As of this writing, the pair is being traded around 0.7278. A support can be noted around 0.7212 an immediate horizontal support ahead of 0.7200 the psychological number and then 0.71257, another key horizontal support as demonstrated in the given below chart.
    [​IMG]
    On the upside, a hurdle can be noted near 0.7377, an immediate horizontal resistance level ahead of 0.7400, the psychological level and then 0.7478, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.7500 resistance area is intact.
    US Services PMI

    A closely-watched gauge of U.S. service sector sentiment rose in January, according to a business survey released on Monday.

    The Institute of Supply Management’s non-manufacturing purchasing manager’s index(PMI) increased to 59.9, compared to forecasts for a reading of 56.5.

    The prior month’s reading was 56.0.

    On the index, a reading above 50.0 indicates the non-manufacturing sector economy is generally expanding, below 50.0 indicates the sector is contracting.

    The Non-Manufacturing Business Activity Index increased to 59.8 last month, 2.0 points above December’s reading of 57.8.

    Economists had forecast a decline to 57.2.

    Trade Idea

    Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.
     
  3. SCM Forex

    SCM Forex Trader

    12
    0
    6
    The Great Britain Pound (GBP) inched lower against the US Dollar (USD) on Wednesday, decreasing the price of GBPUSD to less than 1.4000 following some key economic events. The technical bias remains bullish because of a higher low in the recent downside move.

    GBP/USD Technical Analysis

    As of this writing, the pair is being traded near 1.3957. A hurdle may be noted around 1.4262 (a major horizontal resistance zone) ahead of 1.4300 (a psychological level) and then 1.4343 (another major resistance area).

    [​IMG]


    On the downside, a support can be noted around 1.3000 (a psychological number) ahead of 1.2634 (the low of the last major downside move) and then 1.2500 (the confluence of horizontal support as well as psychological number) as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 1.2700 support area is intact.


    US Trade Deficit

    The U.S. trade deficit widened to the biggest monthly and annual levels since the last recession, underscoring the inherent friction in President Donald Trump’s goal of narrowing the gap while enjoying faster economic growth.


    The deficit increased 5.3 percent in December to a larger-than- expected $53.1 billion, the widest since October 2008, as imports outpaced exports, Commerce Department data showed Tuesday. For all of 2017, the goods-and-services gap grew 12 percent to $566 billion, the biggest since 2008.

    Trade Idea

    Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.
     
  4. SCM Forex

    SCM Forex Trader

    12
    0
    6
    The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Thursday, decreasing the price of AUDUSD to less than 0.7850 following some key economic releases. The technical bias shall remain bearish because of a lower high in the ongoing downside move.

    AUD/USD Technical Analysis

    As of this writing, the pair is being traded around 0.7827. A support can be noted around 0.7500, an immediate horizontal support ahead of 0.7450 the psychological number and then 0.7367, another key horizontal support as demonstrated in the given below chart.

    [​IMG]
    On the upside, a hurdle can be noted near 0.8090, an immediate horizontal resistance level ahead of 0.8100, the psychological level and then 0.8249, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.8024 resistance area is intact.

    Australia Trade Balance
    Australia has slipped to a heavy trade deficit in December after imports surged during the month.

    The trade balance for the month fell to a deficit of $1.36 billion, down from a revised $36 million surplus in November and against market expectations for a surplus of $200 million.

    Exports were up by $510 million or 2.0 per cent for the month led mainly by an increase in shipments of iron ore and coal, the country’s top two export earners, the Australian Bureau of Statistics said.

    However, imports jumped by $1.9 billion or 6.0 per cent during the month, mainly on account of a surge in imports of fuel as well as machinery and equipment.

    Trade Idea
    Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.
     
  5. SCM Forex

    SCM Forex Trader

    12
    0
    6
    The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Friday, increasing the price of GBPUSD to more than 1.3900 following some key economic events. The technical bias remains bullish because of a higher low in the recent downside move.

    GBP/USD Technical Analysis

    As of this writing, the pair is being traded near 1.3935. A hurdle may be noted around 1.4262 (a major horizontal resistance zone) ahead of 1.4300 (a psychological level) and then 1.4343 (another major resistance area).


    [​IMG]


    On the downside, a support can be noted around 1.3000 (a psychological number) ahead of 1.2634 (the low of the last major downside move) and then 1.2500 (the confluence of horizontal support as well as psychological number) as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 1.2700 support area is intact.

    BoE Interest Rate
    The Bank of England said on Thursday it was likely to raise interest rates sooner and by more than it thought only three months ago, because Britain’s slow-moving economy is getting a boost from the global recovery.

    The BoE’s rate-setters gave themselves time to assess how Britain is coping with the approach of Brexit by voting unanimously to hold Bank Rate at 0.5 percent, as expected.

    But Governor Mark Carney and his colleagues said they saw a growing need to keep a grip on inflation, echoing other central banks which are moving toward tighter monetary policy a decade after the financial crisis.

    Trade Idea
    Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.
     
  6. SCM Forex

    SCM Forex Trader

    12
    0
    6
    Gold inched higher on Monday, increasing the price of yellow metal to more than $1300.00 an ounce after some key economic releases. The technical bias remains bullish because of a higher high in the ongoing upside move.

    XAU/USD Technical Analysis

    As of this writing, the precious metal is being traded near $1325.46 an ounce. A hurdle can be noted near $1365, a key psychological level ahead of $1373, the high of the last major upside rally on the daily chart and then $1400, the psychological level. A break and daily closing above the $1400 level shall trigger renewed buying interest, validating a rally towards the $1440 resistance zone.

    [​IMG]

    On the downside, a support may be noted around $1311, an immediate horizontal support ahead of $1300, the psychological level as well as another key horizontal support area and then $1250, a major psychological number. The technical bias shall remain bullish as long as the $1200 support area is intact.

    China Consumer Price Index

    China’s consumer inflation cooled to 1.5 percent in January, in line with economists’ forecasts, official data showed on Friday.

    The consumer price index (CPI) had been expected to moderate from a 1.8 percent gain in December.

    The producer price index (PPI) rose 4.3 percent from a year earlier, also cooling from the previous month’s rise of 4.9 percent, the National Bureau of Statistics (NBS) said on its website.

    Analysts polled by Reuters had predicted producer inflation would ease to 4.4 percent in January.

    Trade Idea

    Considering the overall technical and fundamental outlook, buying the precious metal around current levels appears to be a good strategy in short to medium term.
     
  7. SCM Forex

    SCM Forex Trader

    12
    0
    6
    The New Zealand Dollar (NZD) inched higher against the US Dollar (USD) on Tuesday, increasing the price of NZDUSD to more than 0.7250 following some key economic releases. The technical bias shall remain bullish because of a higher high in the ongoing downside move.

    NZD/USD Technical Analysis

    As of this writing, the pair is being traded around 0.7265. A support can be noted around 0.7212 an immediate horizontal support ahead of 0.7200 the psychological number and then 0.71257, another key horizontal support as demonstrated in the given below chart.

    On the upside, a hurdle can be noted near 0.7377, an immediate horizontal resistance level ahead of 0.7400, the psychological level and then 0.7478, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.7500 resistance area is intact.

    New Zealand Employment Data

    New Zealand employment growth slowed less than economists projected in the final quarter of 2017, when a change of government caused a slump in business confidence and made firms more cautious about hiring. The jobless rate unexpectedly fell to a fresh nine-year low. Here are some key points from the report;

    · Employment rose 0.5% q/q; economists expected 0.4% gain

    · Jobless rate fell to 4.5%; economists’ tipped rise to 4.7%

    · Jobless rate lowest since 4.4% in 4q 2008

    · Participation rate dropped to 71%, matching economists’ forecast

    · N.Z. dollar climbed to 73.43 U.S. cents at 11:20 a.m. in Wellington from 73.06 cents before the report

    Trade Idea

    Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.
     
  8. SCM Forex

    SCM Forex Trader

    12
    0
    6
    The Euro (EUR) inched higher against the US Dollar (USD) on Wednesday, increasing the price of EURUSD to more than 1.2350 following some key economic releases. The technical bias shall remain bullish because of a higher high in the ongoing downside move.

    EUR/USD Technical Analysis

    As of this writing, the pair is being traded around 1.2383. A support can be noted around 1.2162, an immediate horizontal support ahead of 1.2100 the psychological number and then 1.1979, another key horizontal support as demonstrated in the given below chart.

    On the upside, a hurdle can be noted near 1.2453, an immediate horizontal resistance level ahead of 1.2500, the psychological level and then 1.2537, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 1.2300 resistance area is intact.

    Germany Import Prices

    German import price inflation in December was the lowest in over a year, though prices rose during the whole year 2017, erasing the decline seen in the previous year, preliminary data from the statistical office Destatis showed Monday. The import price index climbed 1.1 percent year-on-year, which was sharply slower than the 2.7 percent increase in November. The latest gain was the smallest since November 2016, when import prices rose just 0.3 percent.

    On a month-on-month basis, import prices grew 0.3 percent in December. For the whole year 2017, import prices rose 3.8 percent versus a 3.1 percent fall in 2016. The latest increase was the highest since 2011, when import prices jumped 6.4 percent.

    Trade Idea

    Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.
     
  9. SCM Forex

    SCM Forex Trader

    12
    0
    6
    The Australian Dollar (AUD) inched higher against the US Dollar (USD) on Thursday, increasing the price of AUDUSD to more than 0.7900 following some key economic releases. The technical bias shall remain bullish because of a higher high in the recent upside move.

    AUD/USD Technical Analysis

    As of this writing, the pair is being traded around 0.7932. A support can be noted around 0.7500, an immediate horizontal support ahead of 0.7450 the psychological number and then 0.7367, another key horizontal support as demonstrated in the given below chart.

    On the upside, a hurdle can be noted near 0.8090, an immediate horizontal resistance level ahead of 0.8100, the psychological level and then 0.8249, the high of the last major upside rally as demonstrated in the given above chart. The technical bias shall remain bearish as long as the 0.8024 resistance area is intact.

    Australia Trade Balance

    Australia has slipped to a heavy trade deficit in December after imports surged during the month.

    The trade balance for the month fell to a deficit of $1.36 billion, down from a revised $36 million surplus in November and against market expectations for a surplus of $200 million.

    Exports were up by $510 million or 2.0 per cent for the month led mainly by an increase in shipments of iron ore and coal, the country’s top two export earners, the Australian Bureau of Statistics said.

    However, imports jumped by $1.9 billion or 6.0 per cent during the month, mainly on account of a surge in imports of fuel as well as machinery and equipment.

    Trade Idea

    Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.
     
  10. SCM Forex

    SCM Forex Trader

    12
    0
    6
    The Great Britain Pound (GBP) inched higher against the US Dollar (USD) on Friday, increasing the price of GBPUSD to more than 1.4100 following some key economic events. The technical bias remains bullish because of a higher low in the recent downside move.

    GBP/USD Technical Analysis

    As of this writing, the pair is being traded near 1.4146. A hurdle may be noted around 1.4262 (a major horizontal resistance zone) ahead of 1.4300 (a psychological level) and then 1.4343 (another major resistance area).

    On the downside, a support can be noted around 1.3000 (a psychological number) ahead of 1.2634 (the low of the last major downside move) and then 1.2500 (the confluence of horizontal support as well as psychological number) as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 1.2700 support area is intact.

    BoE Interest Rate

    The Bank of England said on Thursday it was likely to raise interest rates sooner and by more than it thought only three months ago, because Britain’s slow-moving economy is getting a boost from the global recovery.

    The BoE’s rate-setters gave themselves time to assess how Britain is coping with the approach of Brexit by voting unanimously to hold Bank Rate at 0.5 percent, as expected.

    But Governor Mark Carney and his colleagues said they saw a growing need to keep a grip on inflation, echoing other central banks which are moving toward tighter monetary policy a decade after the financial crisis.

    Trade Idea

    Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.
     
  11. SCM Forex

    SCM Forex Trader

    12
    0
    6
    Gold inched higher on Monday, increasing the price of yellow metal to more than $1300.00 an ounce after some key economic releases. The technical bias remains bullish because of a higher high in the ongoing upside move.

    XAU/USD Technical Analysis

    As of this writing, the precious metal is being traded near $1350.56 an ounce. A hurdle can be noted near $1365, a key psychological level ahead of $1373, the high of the last major upside rally on the daily chart and then $1400, the psychological level. A break and daily closing above the $1400 level shall trigger renewed buying interest, validating a rally towards the $1440 resistance zone.

    On the downside, a support may be noted around $1311, an immediate horizontal support ahead of $1300, the psychological level as well as another key horizontal support area and then $1250, a major psychological number. The technical bias shall remain bullish as long as the $1200 support area is intact.

    China Consumer Price Index

    China’s consumer inflation cooled to 1.5 percent in January, in line with economists’ forecasts, official data showed on Friday.

    The consumer price index (CPI) had been expected to moderate from a 1.8 percent gain in December.

    The producer price index (PPI) rose 4.3 percent from a year earlier, also cooling from the previous month’s rise of 4.9 percent, the National Bureau of Statistics (NBS) said on its website.

    Analysts polled by Reuters had predicted producer inflation would ease to 4.4 percent in January.

    Trade Idea

    Considering the overall technical and fundamental outlook, buying the precious metal around current levels appears to be a good strategy in short to medium term.
     

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