After a choppy start, the majors move into the green. Failure to move through to key levels could lead to a reversal, however…
Market risk appetite wanes following Apple’s profit warning. Apple is unlikely to be alone and that doesn’t bode well as COVID-19 cases continue to rise.
Gold markets did very little during the trading session on Monday as we continue to see this market jump back and forth with an upward proclivity as markets would have been limited in their trading do to Presidents’ Day.
The US dollar continues to rally against the Japanese yen, and what would have been somewhat thin trading during half of the day. The Presidents’ Day holiday in the United States had bankers away, so most of the action would have been in Asian and European trading.
The British pound initially tried to rally during the trading session on Monday but pulled back from the 50 day EMA. The market continues to go back and forth just above the 1.30 level, and at this point it looks as if the market is trying to build up enough momentum to make its next move.
The British pound initially tried to rally a bit during the trading session on Monday as traders came back to work but then turned around to fall again. Ultimately, the market continues to consolidate in a bid to build up some type of base.
The Euro initially tried to rally during the trading session on Monday, but as the Europeans went home, the Euro was showing signs of weakness yet again. Ultimately, this is a market that continues to struggle in general, and with the Americans gone, the trading action was a bit less than strong in either direction.
During the trading session on Monday, the Australian dollar initially tried to rally but we continue to see bearish pressure just above pushing this pair back down. That being said, it was Presidents’ Day in the United States, so trading was a bit thin during that timeframe.
As far as looking for a bottom, there is still too much uncertainty out there regarding the economic impact of the coronavirus to think about a meaningful rally.
Gold should continue to catch a bid because a weakening global economy and stimulus tend to be bullish for prices. The market could really start to take off to the upside if the major central banks in the region are forced to make rate cuts they have recently said are unnecessary.
Since the main trend is up, our bias is to the upside. Based on the current price at 109.877, the direction of the USD/JPY the rest of the session on Monday is likely to be determined by trader reaction to the uptrending Gann angle at 109.688 and the downtrending Gann angle at 109.634.
The British pound posted gains every day last week but the upward momentum appears to have stalled at resistance from a horizontal level and the 50-day moving average.
Based on the early price action and the current price at .6435, the direction of the NZD/USD the rest of the session on Monday is likely to be determined by trader reaction to the short-term 50% level at .6441.
Based on the early price action and the current price at .6725, the direction of the AUD/USD the rest of the session on Monday is likely to be determined by trader reaction to the uptrending Gann angle at .6722.
We basically ended the week with Dollar/Yen bulls focusing on the U.S. stock markets hovering near record highs, and the Dollar/Yen bears worried about whether the coronavirus epidemic was worsening.
Beleaguered Indian wireless carrier Vodafone Idea will pay 35 billion rupees ($490 million) in telecoms dues to the federal government by Feb. 21, a lawyer for the company said on Monday. Hopes that Vodafone Idea could outlive the financial squeeze due to the outstanding dues payments helped its shares gain as much as 23.5% on Monday, their best intraday gain since Jan 21, after dropping more than 24% percent on Friday. "While there is a concern that Vodafone is against the wall, there is a slim hope that they will get through," said Siddhartha Khemka, head of research at Motilal Oswal Financial Services in Mumbai.