EUR/USD traders remains cautious in the first day of the week as price keeps trading unchanged around 1.0540. On Friday the US dollar was benefited by positive US data and that drove the price of the pair down. Now bears seem to have an edge that would give them control over the pair for the short-term.
Rosen's Daily
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Gold registered a new high today going above $1,190 for the first time since 30 November last year. The precious metal has been gaining in price since 15 December when it reached a low of $1,123 and then started going North.
Although the asset looks clearly bullish, going long for the short-term might turn out to be a bad choice. The odds are still in favor of the US dollar as we approach the Inauguration day when Donald Trump will officially be elected as President of the United States. In light of this, markets might react excesivelly volatile without any reasoning behind it.
Best decision would be to remain cautiously optimistic and observe the turn of events with a clear head to not fall prey to the desire for quick money on news trading.
Current Gold price is trading at resistance and if bulls want to continue their rally they need to go above the psychological $1,200 in order for them to have an edge against their peers.
Although the asset looks clearly bullish, going long for the short-term might turn out to be a bad choice. The odds are still in favor of the US dollar as we approach the Inauguration day when Donald Trump will officially be elected as President of the United States. In light of this, markets might react excesivelly volatile without any reasoning behind it.
Best decision would be to remain cautiously optimistic and observe the turn of events with a clear head to not fall prey to the desire for quick money on news trading.
Current Gold price is trading at resistance and if bulls want to continue their rally they need to go above the psychological $1,200 in order for them to have an edge against their peers.
USD/JPY continues to trade sideways with price fluctuating around 116 in recent days. The pair registered a close to one year high in December reaching up to 118.66. After that high, however, bears stepped in and ended the multi-month rally that started from 98.85.
Price is now 116.09 as consolidation continues. First bull target is seen at 117.39 while first bear target is below the lowest low at 115.05.
We are only 10 days away from the Inauguration of Donald Trump and that event can cause heavy volatility in the US equity and currency market.
As to USD/JPY, traders might attempt to reach major resistance zone at 121.00. In that case, bears are expected to react and push price down.
Price is now 116.09 as consolidation continues. First bull target is seen at 117.39 while first bear target is below the lowest low at 115.05.
We are only 10 days away from the Inauguration of Donald Trump and that event can cause heavy volatility in the US equity and currency market.
As to USD/JPY, traders might attempt to reach major resistance zone at 121.00. In that case, bears are expected to react and push price down.
USD/CAD is trading below the long-term support and just about to touch the 200SMA. The pair broke the support level at 1.3160 and continued to the downside to reach a low of 1.3125. The low comes after the US dollar advanced to a high of 1.36 against its peer and then took a turn South.
Yesterday's speech of Donald Trump influenced the US currency market and the US dollar depreciated against its competitors. Today it seems that the move is likely to continue as there would be no major news that can change the direction of the market.
Current market price is 1.3127 and we are only some 30 points away from the 200SMA. If bears are able to push price below that level we might see selling to accelerate to potential target below 1.30.
On the other hand, the 200SMA might be used by the bulls to bounce off as a strong support level and go back above the support at 1.32.
Yesterday's speech of Donald Trump influenced the US currency market and the US dollar depreciated against its competitors. Today it seems that the move is likely to continue as there would be no major news that can change the direction of the market.
Current market price is 1.3127 and we are only some 30 points away from the 200SMA. If bears are able to push price below that level we might see selling to accelerate to potential target below 1.30.
On the other hand, the 200SMA might be used by the bulls to bounce off as a strong support level and go back above the support at 1.32.
EUR/USD is now trading above 1.0630 with a high of 1.0639. The first speech of Donald Trump since July impacted the US dollar as it depreciated against all competitors. First support zone is seen at 1.0630 while first resistance is seen at 1.0660.
EUR/USD is trading steadily in today's session due to lack of fresh news that can stir the market. Later today we have the Advance Retail Sales and Michigan Confidence. The events have the potential to create the outlook for market behavior for next week.
AUD/USD registered a good move to the upside in the last couple of weeks going from a low 0.7159 to a high of 0.7520. The move comes after the pair has been declining in price due to the 14 year high US dollar. Even that was not enough to keep the Australian dollar bulls from taking control over the pair. The australian currency rose significantly on good economic data thus putting an end to the dominance of the Greenback.
The rise of the AUD, however, might have come to an end as the pair has reached a resistance level created by a double top that has the potential to turn the trend. AUD/USD is already lower after meeting resistance at 0.7515 and is now trading at 0.7485. Another factor that can influence the price is the 200SMA that lays at the same level of resistance.
If the pair closes the last day of the week with an inverted hammer candle it would be a good sign that we might witness further depreciation next week.
The rise of the AUD, however, might have come to an end as the pair has reached a resistance level created by a double top that has the potential to turn the trend. AUD/USD is already lower after meeting resistance at 0.7515 and is now trading at 0.7485. Another factor that can influence the price is the 200SMA that lays at the same level of resistance.
If the pair closes the last day of the week with an inverted hammer candle it would be a good sign that we might witness further depreciation next week.
Dow Jones hit an all time high after Trump won the Presidential elections. The index reached just five points shy of 20,000 and is currently trading at 19,852. The skyrocket rally occurred due to the high expectations of market participants that Trump will actually make America great again. The reality, however, does not have anything to do with the latest rally in US stocks. Earning reports are not that impressive and job growth is at the same place as pre-election times.
Inflated expectations allowed the US companies to improve their earnings performance, but eventually reality may not be able to keep up with expectations. After a twilight period the price trend may be reversed. If Trump does not manage to sustain the rapid growth in US equities prices, the problems will surface and the earnings will collapse.
US companies and hedge funds are optimistic about the Trump presidency as he has surrounded himself with the intellectual and financial elite. In light of this, all the great minds that run the capitalist world are gathered under one roof towards one common goal - the wellbeing of the United States. All of this suggests that what we are about to see will be game changing.
Inflated expectations allowed the US companies to improve their earnings performance, but eventually reality may not be able to keep up with expectations. After a twilight period the price trend may be reversed. If Trump does not manage to sustain the rapid growth in US equities prices, the problems will surface and the earnings will collapse.
US companies and hedge funds are optimistic about the Trump presidency as he has surrounded himself with the intellectual and financial elite. In light of this, all the great minds that run the capitalist world are gathered under one roof towards one common goal - the wellbeing of the United States. All of this suggests that what we are about to see will be game changing.
EUR/USD is trading to the downside in today's early European hours as market participants are expecting the speech of Theresa May that may influence the Sterling. Traders are heading to the stronger US dollar in an attempt to preserve their capital in case of unwanted volatility in the UK currency. CMP 1.0584 EUR/USD.
EUR/USD is trading to the upside in today's session after the selling ended yesterday. The pair is now 1.0676, close to day high at 1.0678. Theresa May's speech may affect the currency pair as traders might flee from Sterling on signals for a hard Brexit.
GBP/AUD is trading close to major support at 1.5750. The pair is in its worst performance since the beginning of September 2015 when it started going downhill. Then in mid-2016 Brexit came and made things worse and now the pair is at a 4 year low. The last time GBP/AUD reached below 1.60 was in 2013 when it bottomed out at 1.4380.
Now the pair is trading at 1.6150 as bulls find it hard to push above the 200SMA at 1.76. They tried to go higher in the last two months of 2016 and made it to 1.72 but bears took the stage again and now the near future of the Sterling looks fragile.
Today we have important news coming out of Britain - GBP Consumer Price Index. If it's good, then we should see the Sterling go higher, but if not, the major support level is exposed to bear attacks.
Now the pair is trading at 1.6150 as bulls find it hard to push above the 200SMA at 1.76. They tried to go higher in the last two months of 2016 and made it to 1.72 but bears took the stage again and now the near future of the Sterling looks fragile.
Today we have important news coming out of Britain - GBP Consumer Price Index. If it's good, then we should see the Sterling go higher, but if not, the major support level is exposed to bear attacks.
The Sterling took off after Theresa May's speech to pursue a hard Brexit and exit the common EU market. Traders and investors apparently believed in her words that a hard Brexit would be positive for the UK as the country expects to come out stronger than when they were a part of the EU. She emphasized that an exit from the EU is not an exit from Europe and would pursue to keep an open market between the UK and the EU.
All of this signaled a buy and the Sterling valued against all its competitors. GBP/USD reached a high of 1.2415 a few hours after the speech, up from 1.1985.
Currently, minor selling has occurred which is probably some profit-taking and the pair has devalued to 1.2270. The move, worth noting, was a reflection on May's outlook for the future and not actual facts so the retrace can be expected to continue.
All of this signaled a buy and the Sterling valued against all its competitors. GBP/USD reached a high of 1.2415 a few hours after the speech, up from 1.1985.
Currently, minor selling has occurred which is probably some profit-taking and the pair has devalued to 1.2270. The move, worth noting, was a reflection on May's outlook for the future and not actual facts so the retrace can be expected to continue.
GBP/JPY is in its fourth day of consecutive gains going from 136.40 to a high of 141.50. The pair reacted to the bullish remarks made by May in her speech to pursue a hard Brexit. Usually when traders and investors buy the Sterling, they sell the Yen causing it to depreciate against all of its peers.
In the case of GBP/JPY, market participants favored the Sterling and what we currently observe is the continuation of the move that started a few days ago. The short-term outlook looks bullish only if bulls manage to push through the 200SMA that is occurring in current market price. A few attempts have proved successful in the near-past so bulls still have the advantage.
On the other hand, the inauguration of Trump might turn out to be a bearish signal for the US dollar, as we already saw a 10% rise in US equities and it's unlikely that the move can hold on much longer. In light of this, what could be happening is buy the election, sell the inauguration, in which case, the Yen might again start to appreciate.
In other news, in less than a day we will witness how Trump becomes President! Markets are anticipating the historical event and high volatility can be expected.
In the case of GBP/JPY, market participants favored the Sterling and what we currently observe is the continuation of the move that started a few days ago. The short-term outlook looks bullish only if bulls manage to push through the 200SMA that is occurring in current market price. A few attempts have proved successful in the near-past so bulls still have the advantage.
On the other hand, the inauguration of Trump might turn out to be a bearish signal for the US dollar, as we already saw a 10% rise in US equities and it's unlikely that the move can hold on much longer. In light of this, what could be happening is buy the election, sell the inauguration, in which case, the Yen might again start to appreciate.
In other news, in less than a day we will witness how Trump becomes President! Markets are anticipating the historical event and high volatility can be expected.
EUR/USD is trading absolutely unchanged since yesterday's level around the 1.0660 level. The pair appears to be anticipating the Inauguration of Donald Trump as President of the United States of America. High volatility can be expected and traders are advised to use low leverage and small positions as market can go either way.
Gold has been having a good start of 2017 with price up $70 from $1,149 to $1,219. The latest high came last week when Trump was officially inaugurated as the 45th President of the USA. Since then, Gold has had some troubles pushing higher and made a low at.$1,210. Price is now $1,211 and it would take a fresh touch backed by fundamentals in order for the pair to continue North.
What's somehow worrisome for the Gold bulls is that Gold has reached the prior high level at $1,220 and retraced back below it thus forming a short-term double top. As of now, the double top is confirmed and market can try to go below the support level at $1,195.
If the precious metal reaches $1,200 bulls may consider this a buying opportunity and support the price. On the other hand, a breach below that level could indicate that bears are taking control over the market.
What's somehow worrisome for the Gold bulls is that Gold has reached the prior high level at $1,220 and retraced back below it thus forming a short-term double top. As of now, the double top is confirmed and market can try to go below the support level at $1,195.
If the precious metal reaches $1,200 bulls may consider this a buying opportunity and support the price. On the other hand, a breach below that level could indicate that bears are taking control over the market.
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