Based on last week’s close at 109.774, the direction of the USD/JPY this week is likely to be determined by trader reaction to the main 50% level at 109.695.
Based on the earlier price action, the direction of the EUR/USD into the close is likely to be determined by trader reaction to the uptrending Gann angle at 1.1369.
Gold markets pulled back a bit during the trading session on Monday, in what would have been relatively thin trading. We did find support at the $1280 level, which is a good sign as it is so important.
The US dollar continues to levitate a bit against the Japanese yen during the day on Monday, but keep in mind that the Martin Luther King holiday of course would have a lot of influence on what the Americans were doing as they were mainly away from their desks during the day.
The British pound stabilized a bit during the trading session on Monday, as the 1.2850 level seems to be offering support yet again. Ultimately, I think that this market is still gyrating to the “thought of the moment” when it comes to Brexit.
The British pound pulled back initially during the trading session on Monday but found enough support underneath to turn around and it stabilized a bit. We are right at the 50 day EMA, and more importantly the ¥141 level. This is an area that has been important more than once.
The Euro rallied a bit during the trading session on Monday, and then gave up all of those gains to reach towards the 1.1350 level. This is a negative turn of events, but we are still in the “rounded bottom” that I had pointed out previously, it’s a bit early to start shorting. Beyond that, I see several points of support underneath.
The Australian dollar initially tried to rally during the trading session on Monday but gave back the gains and rolled over towards the 0.7150 level. At this point, it certainly looks as if we are running out of momentum to the upside, so I think it’s only a matter of time before we fall a bit further.
Stronger than expected Chinese retail Sales and Industrial production also buoyed global yields weighing on gold prices. Momentum has recently turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occur as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line.
London markets were up on Monday, as China announces its economy had grown by 6.6% in 2018 and investors wait for Prime Minister Theresa May to outline her latest Brexit proposal to parliament
Rangebound price action to continue during American market hours amid thin trading volume as US market is closed for the day.
Gold continues to trade positive supported by steady demand from European markets as investors remain cautious over ongoing political debacle and Brexit proceedings.
The gold prices have pulled back in the Friday’s session, reaching down to the $1280 level which is offering a bit of support. The market will continue to be bullish in the long term as the Federal Reserve is likely to go easy on rate hikes. The silver market has entered a bearish territory of the trend by breaking below the supportive $15.50 level.
If the market breaks below the 1.1350 level, then it could break down towards the 1.12 level. The AUD witnessed a massive resistance as it tried to break higher but has pulled back from there. It has been a bit bullish in the market and if the market breaks above the 110 level, then the market could witness a lot of upside pressure.
Investing.com - Gold prices fell on Monday to their lowest level of the year, as investor appetite for risk held up despite data showing China's 2018 economic growth slowed to a near three-decade low.
Investing.com - Cryptocurrencies traded lower on Monday as the Organization for Economic Cooperation and Development (OECD) called for global coordination on the regulation of initial coin offerings (ICO).
The pair is on a consolidative action post corrective price rally as investors await further updates from today’s UK parliament session before placing major bets.
EURO continues to suffer bearish influence from ongoing political issues in the European market, the bearish pressure is further intensified owing to escalating Sino-U.S. trade war tensions.
Investing.com - The pound slid on Monday as British Prime Minister Theresa May prepared to outline her Plan B for Brexit, designed to break the deadlock in parliament by setting out proposals that are expected to focus on winning more concessions from the European Union.
Investing.com -The safe haven Japanese yen firmed against the dollar on Monday as investors digested the latest signs of a slowdown in China after data pointing to a dip in fourth quarter growth.
With a Plan B seemingly in the wind, Theresa May could be in hot water later today, with Parliament getting restless.
Investing.com - Gold prices traded near flat on Monday in Asia as investors awaited further news on trade talks for signs of a resolution in the U.S.-China dispute.
Investing.com - The Chinese yuan fell on Monday in Asia after data showed China’s GDP slowed in the fourth quarter.