Trading news

USD starts the week with gains

Fundamentals, click here for more: https://bit.ly/3ip6lmD

 

    • Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
    • As for the vaccine, European countries reported a delay in Pfizer’s vaccine deliveries. They are receiving significantly fewer doses of the Pfizer coronavirus vaccine than expected.
    • US Core retail sales came out much worse than the forecast. Sales dropped by 1.4%, while the estimate was only -0.1%. It marked the third decline in a row.
    • Unlike the US and EU, China encouraged investors with better-than-expected GDP and industrial output reports. Notably, China’s economy exceeded its pre-pandemic growth rates.

 

Technical tips

EUR/USD steeply plunged, but the support of the 50-day moving average in combination with the 61.8% Fibonacci level at 1.2070 stopped the pair. A short pullback to the upside is expected. If it finally manages to break this level, the way down to the key psychological mark of 1.2000 just above the 50.0% Fibo level will be open. Resistance levels are 1.2150 and 1.2200.

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GBP/USD is edging lower towards the one-week low at 1.3500. The pair shouldn’t break it on the first try. However, if it moves below this level, the doors towards the lower trendline and the 50-day moving average at 1.3420 will be open.

1610953236-19dda06215037e098a5fb4cc5581889f-1200x1200-q90v3

Gold takes a break after a steep decline and moves sideways in the $1 825-1 865 range. The 50-period moving average has already crossed the 100-period MA and now it is approaching the 200-period MA to make the second dead cross. Therefore, we can assume that gold will fall further to the next support of $1 800, once it breaks below the support of $1 825.

1610953235-9c198315c31bd7bfd8e47c742afb7d4d-1200x1200-q90v3

Finally, let’s discuss the aussie. The risk-off sentiment pressed AUD/USD below 0.7700. The pair has already crossed two moving averages and isn’t likely to stop. If it drops below the low of January 4 at 0.7650, the way down to the psychological mark of 0.7600 will be clear. Resistance levels are 0.7740 and 0.7800.

1610953235-77792247dfb92d8a1910c0d72fd89ccb-1200x1200-q90v3

Follow the speech of Bank of England's Governor Bailey at 15:30 MT time.

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FBS Review

Monday, 18 Jan, 2021 / 12:03

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Source : https://fbs.com/analytics/news/usd-starts-the-week-with-gains-11638

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