Gold markets did very little during the trading session on Monday, as the Americans were celebrating Martin Luther King Jr. Day. That being said, we are at extreme highs and it looks like we are ready to “kill time” in order to build up pressure again.
The US dollar has rallied a bit against the Japanese yen early on Monday, as we continue to see strength in general. At this point, the market will more than likely find buyers on dips as we have clearly broken through a major level at one point last week.
The British pound initially fell during the trading session on Monday but did recover a bit as we are starting to test the 1.30 level. The uptrend line is coming into play as well, although we are just short of the 50 day EMA.
The British pound initially gapped lower on Monday, but then turned around to show signs of strength. At this point, the gap has been filled, and it looks as if it is trying to continue going higher.
The Euro rallied a bit during the trading session on Monday but ran into a ton of trouble at the 1.11 handle, and then dropped. However, we have seen to try to recover since then as well.
The Australian dollar initially tried to rally during the trading session on Monday but found trouble at the 200 day EMA. The market has broken down towards the 50 day EMA which of course should show support.
Based on the early price action and the current price at 1.1085, the direction of the EUR/USD the rest of the session on Monday is likely to be determined by trader reaction to the main Fibonacci level at 1.1080.
The direction of the February Comex gold market the rest of the session on Monday will be determined by trader reaction to the minor top at $1564.20.
GBP/USD attempted to recover higher last week but sellers stepped in after a weak UK retail sales report that encouraged rate cut speculation.
Monday is a day off in the American markets due to the Martin Luther King’s Day. Because of the holiday, trading on other markets also promises to be muted.
Will 2020 turn out better than 2019 for the yellow metal? Gold prices don’t move in a vacuum – the macroeconomic situation definitely plays a key fundamental role.
Based on the early price action and the current price at .6874, the direction of the AUD/USD on Monday is likely to be determined by trader reaction to the main 50% level at .6876.
British numbers were dismal last week. On Friday, retail sales declined by 0.6%. The pound is showing signs of weakness, as it has slipped below the symbolic 1.30 level. Is cable headed for further losses?
With only a couple of data releases amidst the Fed’s communication blackout period, this holiday-shortened week looks to be relatively lackluster from the US economics perspective.
Dear Traders, The USD/JPY has already reached M H5 camarilla level. We can see that the pink dot appeared, signaling for a potential counter trend move.
The tailwind from better than expected data continues to support equity markets as US stocks traded at record levels, and those in Europe notched new highs on Friday after Chinese growth data reassured investors over the health of the world’s second-largest economy.
The Bank of Japan will issue its Outlook Report and Monetary Policy on Tuesday. It is expected to leave interest rates and policy unchanged. Also expect policymakers to say they are optimistic about a recovery in the economy because of the signing of the U.S.-China trade deal.
This week’s price action will be largely controlled in Australia by the Employment Change and Unemployment Rate reports. The results of these reports could determine whether the Reserve Bank of Australia trims their benchmark interest rate in February.
Investing.com - The U.S. dollar was largely flat in European trading Monday, with the U.S. holiday providing little incentive for traders to take risks. That said, the greenback still looks strong against its main competitors.