by JustForex
The ECB minutes showed that the European Central Bank officials agreed that the recent and near-term forecasted rise in inflation was mainly due to temporary causes, which are likely to reduce in 2022. According to ECB President Christine Lagarde, the European Central Bank has “good reason” not to respond as forcefully as the Federal Reserve to rising consumer prices. Interest rates are not expected to rise in 2022.
From the technical point of view, the EUR/USD on the hour time frame is bearish. The MACD indicator is in the negative zone, but there are signs of divergence. Under such market conditions, it is better to consider sell trades from the resistance levels near the moving average. Buy trades can be considered on the lower time frames from the support level of 1.1317, but only with additional confirmation in the form of a buyer’s initiative.
Alternative scenario: if the price breaks out through the 1.1405 resistance level and fixes above, the mid-term uptrend will be renewed.
Yesterday, British Prime Minister Boris Johnson announced the abolition of mandatory covid passports in England and the wearing of masks in public places. He also announced that Plan B, introduced due to the spread of the Omicron strain, would not be extended after January 25th, and England would return to Plan A. The government is no longer required to work from home.
On the hourly time frame, the trend on GBP/USD is bearish. The MACD indicator is in the negative zone, but there are the first signs of divergence. Under such market conditions, sell deals are best to look at from the resistance level of 1.3619. Buy trades should be considered from the support level of 1.3581, but only with additional confirmation in the form of buyers’ initiative.
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Alternative scenario: if the price breaks out through the 1.3661 resistance level and consolidates above, the bearish scenario will be broken.
Core consumer prices in Japan increased by 0.5% in December compared to last year. The nationwide core consumer price index, excluding food prices, showed growth for the fourth month in a row. The Japanese yen is strengthening now as a safe haven currency amid a massive sell-off in the US stock market.
The global trend on the USD/JPY currency pair is bearish. Buy deals are best to look at the lower time frames from the nearest support levels. Sell trades can be considered from the resistance level of 113.99, but only with confirmation in the form of a sellers’ initiative, as the monetary policy of the Bank of Japan is now aimed at decreasing the Japanese yen.
Alternative scenario: if the price fixes above 114.63, the uptrend will likely resume.
The Canadian dollar is a commodity currency, so it depends not only on the monetary policy of the Bank of Canada but also on the oil prices and the dollar index. Oil quotes fell sharply by 2% on the background of sell-off on the US stock market and unexpected growth of weekly crude oil reserves in the USA. Taking into account the dollar index growth, USD/CAD quotes rose slightly by the end of the day.
From a technical point of view, the USD/CAD currency pair is bearish. The price is now trading in a corridor with a range of 1.2476-1.2537. The price range has shifted slightly lower, but the price has remained trading within the corridor. The MACD indicator has become positive. Under such market conditions, it is better to look for buy deals from the level of 1.2476 on the lower time frames. It is better to consider sell deals from the upper border of the range of 1.2537.
Alternative scenario: if the price breaks through the 1.2575 resistance level and fixes above, the downtrend is likely to be broken.
by JustForex
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
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