Technical Analysis – EURUSD faces big challenge around SMAs in ascending channel

Posted on January 25, 2021 at 8:03 am GMT

EURUSD rebounded on the 1.2050 support level on January 18, flirting now with the 20- and 40-day simple moving averages (SMAs). In the broader outlook, the price has been developing within an upward sloping channel since June 2020. Looking at the technical indicators, the stochastic is moving towards the overbought territory, suggesting a strong bullish action, however, the RSI is standing marginally above the 50 level. In case of an upward attempt above the SMAs, the pair would likely meet [..]


Daily Market Comment – Stocks retreat, dollar edges up as virus concerns creep in again

Posted on January 22, 2021 at 10:11 am GMT

Equity rally loses steam after strong weekly gains amid renewed virus jitters Talk of Biden tax increases also undermines risk appetite, lifting the dollar Poor data pull down pound and aussie but euro fares better after ECB stays put Virus outbreaks, recession fears cap risk rally The stimulus-led stock market rally faltered on Friday as investors paused for breath after sharp gains in a week when US President Joe Biden formally took office, reaffirming expectations of higher spending and borrowing [..]


Daily Market Comment – Wall Street at fresh record as Biden sworn in; euro up ahead of ECB

Posted on January 21, 2021 at 10:10 am GMT

Hopes of more stimulus and relief over Biden’s peaceful transition lift sentiment US stocks close at new record highs as strong earnings add extra fuel Dollar skids again, euro bounces off lows ahead of ECB decision Optimism high as Biden enters White House After four tumultuous years, Trump’s presidency came to a historic end on Wednesday, as Joe Biden marked his first day at the White House by spreading a message of hope and unity to a fractious nation. While [..]


Technical Analysis – EURUSD consolidates after correction below 200-MA

Posted on January 21, 2021 at 9:02 am GMT

EURUSD’s recent bounce within a key support region, after a deep retraction below the 200-period simple moving average (SMA), seems to be curbed by the 50-period SMA. Promoting a paused bearish plunge is the falling 50-period SMA and the slight upturn in the 20-period SMA. Furthermore, the gliding 100-period SMA and the slowing upward pace of the 200-period SMA are suggesting further weakening in the positive structure. Taking a glimpse at the short-term oscillators, it is apparent that positive momentum [..]


ECB: May hold steady with eyes on the euro – Forex News preview

Posted on January 20, 2021 at 3:11 pm GMT

The European Central Bank (ECB) will conclude its first rate-setting meeting of the year on Thursday at 12:45 GMT and although worsening virus conditions have made a double-dip recession all but certain at the end of 2020, the central bank may decide to stay on the sidelines. The policy announcement itself is not expected to be a big market mover for the euro, though criticism of the euro’s strength could bring a major support area under examination.  ECB to stand [..]


Daily Market Comment – Stocks climb, dollar slips as Yellen makes case for more stimulus

Posted on January 20, 2021 at 9:53 am GMT

Stocks power higher after Yellen calls for more big spending to fight pandemic Risk assets rally ahead of Biden inauguration as reflation trade boosted Dollar under renewed selling pressure, gold capitalizes Yellen talks up big spending Risk appetite was riding high on Wednesday after Treasury Secretary nominee Janet Yellen reignited hopes of more massive stimulus packages in the United States in her confirmation hearing yesterday. Yellen went out of her way to make the case for higher spending to counter [..]


Daily Market Comment – Wall Street eyes Yellen testimony, dollar eases

Posted on January 19, 2021 at 9:31 am GMT

Stocks perk up after slow start to the week as focus turns to Yellen and earnings Hopes that Biden administration will spend “big” bolsters sentiment Euro steadies as Italian worries abate, dollar retreats Yellen to tell US lawmakers to “act big” After a sluggish start to the week, risk sentiment improved late on Monday as investors turned their attention on incoming Treasury Secretary Janet Yellen’s confirmation hearing before the Senate today (1500 GMT), while bracing themselves for a slew of [..]


Daily Market Comment – Strong China GDP can’t shake off virus blues, dollar firms

Posted on January 18, 2021 at 9:55 am GMT

Markets wrestle vaccine and stimulus optimism with worsening near-term gloom Upbeat Chinese GDP highlights global growth disparity as US retail sales sag Euro stuck in the doldrums, eyes Italian confidence votes China notches up positive full-year growth in 2020 As most major economies struggle under the weight of the pandemic, China is demonstrating to the world that a full recovery from the virus slump is possible. China’s gross domestic product (GDP) rose by an annual rate of 6.5% in the [..]


Technical Analysis – EURUSD aims to halt decline as bears hold near-term edge

Posted on January 18, 2021 at 8:46 am GMT

EURUSD started the week in a neutral tone, consolidating last week’s losses around the 50-day simple moving average (SMA), which happens to be near a key restrictive line and the 38.2% Fibonacci retracement of the 1.1600 – 1.2348 upleg, at 1.2063. While this could be an ideal place for a rebound, the momentum indicators continue to provide conflicting signals in favor of the bears. The MACD, comfortably below its red signal line, is converging towards the zero line, while the [..]


Week Ahead – ECB, BoJ and BoC meet but all eyes on US Capitol

Posted on January 15, 2021 at 12:17 pm GMT

The first of the new year’s central bank meetings will get under way next week and it will be a heavy schedule on the data front as well. The European Central Bank, Bank of Japan and Bank of Canada will almost certainly be debating the latest setback to the recovery from the worsening Covid-19 outbreak. China will report its fourth quarter GDP print and flash PMIs along with inflation and retail sales numbers will be doing the rounds in most [..]

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