InvestMacro

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.1277
• Prev Close: 1.1285
• % chg. over the last day: +0.07%

The ECB balance sheet continues to grow steadily. Yesterday, the balance reached a new absolute record of €8,511.5 trillion. However, it should be noted that the increase was by €14.8 billion against the increase of €26.7 billion a week earlier, which indicates a temporary volume contraction. This could provide short-term support for the European currency.

Trading recommendations

• Support levels: 1.1243, 1.1230, 1.1168
• Resistance levels: 1.1323, 1.1360, 1.1436, 1.1535, 1.1613, 1.1667, 1.1717

From a technical point of view, the EUR/USD on the hour time frame is still bearish. The MACD indicator has become inactive. The price is trading in the corridors, both on the higher time frames and on the lower ones. These are complex conditions for trading. It is better to consider sell deals from the resistance level of 1.1323. Buy trades can be considered on the lower time frames from the support level of 1.1243, but only with additional confirmation.

Alternative scenario: if the price breaks out through the 1.1360 resistance level and fixes above, the mid-term uptrend will likely resume.

News feed for 2021.12.22:

• – US GDP (q/q) at 15:30 (GMT+2);
• – US CB Consumer Confidence (m/m) at 17:00 (GMT+2);
• – US Existing Home Sales (m/m) at 17:00 (GMT+2);
• – US Crude Oil Inventories (m/m) at 17:30 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.3207
• Prev Close: 1.3268
• % chg. over the last day: +0.46%

The British currency is supported by rising oil prices as well as the monetary policy of the Bank of England, which has already raised the interest rate and intends to start reducing its stimulus program as the wave of “Omicron” decreases.

Trading recommendations

• Support levels: 1.3220
• Resistance levels: 1.3272, 1.3301, 1.3365, 1.3434, 1.3507, 1.3575, 1.3685

On the hourly time frame, the trend on GBP/USD is still bullish. The price is trading near the moving average. The MACD indicator is in the positive zone with no signs of reversal. Under such market conditions, traders should consider buy positions from the 1.3220 support level but only with additional confirmation in the form of a buyers’ initiative. Sell trades can be considered from the resistance level of 1.3301.

Alternative scenario: if the price breaks down through the 1.3189 support level and consolidates below, the bearish scenario will likely resume.

News feed for 2021.12.22:

• – UK GDP (q/q) at 09:00 (GMT+2).

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 113.54
• Prev Close: 114.08
• % chg. over the last day: +0.47%

The minutes of the monetary policy meeting of the Bank of Japan showed that, in general, the weakening yen is having a positive effect on the Japanese economy. From a fundamental point of view, the situation on the USD/JPY currency pair remains the same. The monetary policy of the Bank of Japan is aimed at active economic stimulation, while the US Federal Reserve, on the contrary, accelerated the reduction of the quantitative easing program last week. Such a situation is in favor of further growth of USD/JPY quotes.

Trading recommendations

• Support levels: 113.95, 113.76, 113.30, 112.62, 112.30
• Resistance levels: 114.17, 115.15, 115.50

The global trend on the USD/JPY currency pair is bearish. But the price has once again reached the priority change level, and this time the sellers’ reaction is much weaker. The probability of breakout is increasing. Buy positions should be considered from the 113.30 support level, but with additional confirmation in the form of a buyers’ initiative or after the price breaks out the priority change level. Sell positions should be considered if the price makes a false breakout of 114.17 level and returns back to the wide corridor with the 113.30-114.17 price range.

Alternative scenario: if the price rises above 114.17, the uptrend will likely resume.

News feed for 2021.12.22:

• – Japan BoJ Monetary Policy Statement at 01:50 (GMT+2).

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2936
• Prev Close: 1.2912
• % chg. over the last day: -0.19%

Positive retail sales data and rising oil prices are now supporting the Canadian currency. Currently, the dollar index is stable as concerns about the Omicron strain are easing. From the fundamental point of view, this situation leads to the fact that the USD/CAD quotes do not have a single dynamic.

Trading recommendations

• Support levels: 1.2828, 1.2721, 1.2677, 1.2638
• Resistance levels: 1.2918, 1.2951

From a technical point of view, the USD/CAD currency pair trend is bullish. The MACD indicator has become inactive. Under such market conditions, it is better to look for buy deals from the support levels near the moving average on the lower time frames. Sell deals should be considered from the resistance level of 1.2918, but with additional confirmation in the form of a sellers’ initiative.

Alternative scenario: if the price breaks down through the 1.2783 support level and fixes below, the downtrend will likely resume.

News feed for 2021.12.22:

• – US Crude Oil Inventories (m/m) at 17:30 (GMT+2).

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.

by JustForex

The US stock indices closed with strong growth yesterday. The rebound was observed in almost all sectors except Healthcare and Consumer Defensive. Separately, it should be noted about the confidence increase in the companies of the tourist industry. By the end of the trading day, the Dow Jones index (US30) gained 1.6%, S&P 500 (US500) added 1.78%, while Nasdaq (US100) jumped by 2.4%.

Micron shares led to the gain among chipmakers, jumping by 10.5%. The company reported better-than-forecast quarterly results. The earnings forecast for the current quarter also beats Wall Street expectations. The companies’ positive reports help ease some of the investors’ concerns about broader supply chain constraints in the face of high inflation.

On Tuesday, US President Joe Biden said that he does not intend to impose a national quarantine, emphasizing testing and vaccinations. Starting next month, the White House will make 500 million tests available to everyone for free. Military doctors and nurses may be involved to help overcrowded hospitals cope with the winter surge.

European stock indices also closed in the green area yesterday. The British FTSE 100 (UK100), German DAX (DE30), and French CAC 40 (FR40) increased by 1.4%. Spanish IBEX 35 (ES35) jumped by 1.8%. The market was supported by reducing concerns about the Omicron variant, as future vaccines will be effective against the new strain. The price of gas in Europe for the first time exceeded $2,000.

Meanwhile, the price of natural gas futures, on the contrary, has been decreasing for three weeks. However, the reason for the rise in gas prices in Europe is due to the stoppage of Gazprom’s key pipeline, as well as a drop in temperatures in the region. The UK GDP increased by 1.1% in Q3; a 1.3% growth was expected.

The Turkish lira strengthened sharply amid government support measures to protect local currency savings from exchange rate fluctuations. On Tuesday, Turkey’s central bank said it would support the conversion of foreign-currency deposit accounts into lira deposits. Resident individuals who already have a foreign currency deposit account will be eligible for benefits if they convert their accounts into Turkish lira term deposit accounts. At the moment, more than half of the savings of local residents are in foreign currencies and gold due to the loss of confidence in the lira after a sharp depreciation. Over the past two days, the Turkish currency increased by 30%.

Crude oil prices also rose yesterday as risk appetite returned to the markets, helped by easing concerns over the Omicron strain. Crude oil inventories data will be released today. Analysts believe the government data will show a 2.6 million barrel drop in crude oil inventories from the previous week. The supply shortage may cause oil prices to rise further.

The Asian stock indices supported the overall growth dynamics yesterday. At the same time, the indices continued to rise at the opening of trading today. Japan’s Nikkei stock index (JP225) increased by 1.6% yesterday. News of Monday’s enactment of an extra budget to fund the Japanese government’s economic stimulus package aimed at mitigating the effects of Covid-19 also seemed to support the domestic stock market. Hong Kong’s Hang Seng Index (HK5) increased by 0.2%. Hong Kong’s consumer price index rose to 1.8% on an annualized basis. Compared to the previous month, the increase was 0.1%. Hong Hao, a head of research at BOCOM International, said that Chinese investors were more focused on potential supply chain problems caused by COVID outbreaks than on inflation indicators. One major Chinese port was closed as a result of the Omicron outbreak yesterday.

Main market quotes:

S&P 500 (F) (US500) 4,649.23 +81.21 (+1.78%)

Dow Jones (US30) 35,492.70 +560.54 (+1.60%)

DAX (DE40) 15,447.44 +207.77 (+1.36%)

FTSE 100 (UK100) 7,297.41 +99.38 (+1.38%)

USD Index 96.59 +0.10 (+0.10%)

• – Japan BoJ Monetary Policy Statement at 01:50 (GMT+2);
• – UK GDP (q/q) at 09:00 (GMT+2);
• – US GDP (q/q) at 15:30 (GMT+2);
• – US CB Consumer Confidence (m/m) at 17:00 (GMT+2);
• – US Existing Home Sales (m/m) at 17:00 (GMT+2);
• – US Crude Oil Inventories (m/m) at 17:30 (GMT+2).

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.

Article By RoboForex.com

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD is trading at 1.3217; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s upside border at 1.3235 and then resume moving downwards to reach 1.3075. Another signal in favour of a further downtrend will be a rebound from the resistance level. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 1.3320. In this case, the pair may continue growing towards 1.3415.

NZDUSD, “New Zealand Dollar vs US Dollar”

NZDUSD is trading at 0.6725; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s upside border at 0.6765 and then resume moving downwards to reach 0.6605. Another signal in favour of a further downtrend will be a rebound from the descending channel’s upside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 0.6825. In this case, the pair may continue growing towards 0.6915.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is trading at 113.73; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s downside border at 113.35 and then resume moving upwards to reach 114.95. Another signal in favour of a further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 112.95. In this case, the pair may continue falling towards 112.05.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Article By RoboForex.com

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, the asset is still trading upwards. After forming a Hammer reversal pattern not far from the support level, XAUUSD may reverse and continue forming its rising impulse. In this case, the upside target may be the resistance area at 1820.00. At the same time, an opposite scenario implies that the price may correct towards 1775.00 first and then resume trading upwards.

NZDUSD, “New Zealand vs US Dollar”

As we can see in the H4 chart, NZDUSD has formed a Hammer reversal pattern close to the support area. At the moment, the asset may reverse in the form of a new correctional impulse towards the resistance level. In this case, the upside target may be at 0.6780. After that, the asset may rebound from the level and resume moving downwards. However, an alternative scenario implies that the price may continue falling to reach 0.6655 without any corrections towards the resistance level.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, GBPUSD has formed an Engulfing reversal pattern near the support area. At the moment, the pair may reverse and start a new correctional wave. In this case, the upside correctional target may be at 1.3260. After testing the resistance level, the market may rebound from it and resume trading downwards. Still, there might be an alternative scenario, according to which the asset may continue falling to reach 1.3150 without any corrections towards the resistance level.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.1236
• Prev Close: 1.1276
• % chg. over the last day: +0.36%

Electricity prices in Europe increased to record levels due to the cold weather on Monday. Also, there is a rising incidence of disease in the region. Bundesbank predicts that the German economy may contract this quarter due to the Omicron strain. At the moment, the ECB is not taking any decisive steps to tighten monetary policy, so there are no fundamental reasons for the European currency to grow.

Trading recommendations

• Support levels: 1.1243, 1.1230, 1.1168
• Resistance levels: 1.1323, 1.1360, 1.1436, 1.1535, 1.1613, 1.1667, 1.1717

From a technical point of view, the EUR/USD on the hour time frame is still bearish. The MACD indicator has become inactive. Under such market conditions, traders should consider sell positions from the resistance level of 1.1323. Buy trades can be considered on the lower time frames from the support level of 1.1243, but only with additional confirmation.

Alternative scenario: if the price breaks out through the 1.1360 resistance level and fixes above, the mid-term uptrend will likely resume.

There is no news feed for today.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.3238
• Prev Close: 1.3208
• % chg. over the last day: -0.23%

The UK reported 91,743 new Covid-19 cases on Monday, compared to 82,886 the day before. The country has already imposed strict restrictions, and the government is ready to tighten even more if necessary. The British pound may be supported by oil quotes growth, as well as the monetary policy of the Bank of England, which has already raised the interest rate last week.

Trading recommendations

• Support levels: 1.3189
• Resistance levels: 1.3272, 1.3301, 1.3365, 1.3434, 1.3507, 1.3575, 1.3685

On the hourly time frame, the GBP/USD trend is still bullish. The price reached the priority change level yesterday, but the buyers defended their positions. The MACD indicator has become inactive. Under such market conditions, traders should consider buy positions from the priority change level but only with additional confirmation in the form of a new buyers’ initiative. Sell trades can be considered from the resistance levels near the moving average.

Alternative scenario: if the price breaks down through the 1.3189 support level and consolidates below, the bearish scenario will likely resume.

There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 113.61
• Prev Close: 113.62
• % chg. over the last day: +0.00%

From a fundamental point of view, the situation on the USD/JPY currency pair remains the same. The monetary policy of the Bank of Japan is aimed at active economic stimulation, while the US Federal Reserve, on the contrary, accelerated the reduction of the quantitative easing program last week. Such a situation is in favor of further growth of USD/JPY quotes.

Trading recommendations

• Support levels: 113.30, 112.62, 112.30
• Resistance levels: 113.95, 114.17, 115.15, 115.50

The global trend on the USD/JPY currency pair is bearish. The price is trading in a wide corridor. Under such market conditions, traders are best to look for sell positions from the resistance level of 113.95, but with additional confirmation. Buy positions should be considered from the 113.30 support level, but with additional confirmation in the form of a buyers’ initiative or after the price breaks out the priority change level.

Alternative scenario: if the price rises above 114.17, the uptrend will likely resume.

There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2889
• Prev Close: 1.2943
• % chg. over the last day: +0.42%

The Canadian dollar is a commodity currency, so it is highly correlated with both the dollar index and oil prices. Now the dollar index has fundamental support from the US Federal Reserve, while oil prices have been declining because of the Omicron strain, which negatively impacts fuel demand. However, analysts expect oil prices to recover soon, which could lead to a temporary strengthening of the Canadian dollar and a decrease in USD/CAD quotes.

Trading recommendations

• Support levels: 1.2918, 1.2828, 1.2721, 1.2677, 1.2638
• Resistance levels: 1.2951

From a technical point of view, the trend of the USD/CAD currency pair is bullish. The MACD indicator is in the positive zone, but there are the first signs of divergence. Under such market conditions, it’s better to look for buy deals from the support levels near the moving average on the lower time frames. Sell deals should be considered after the price returns below the level of 1.2918, but with additional confirmation in the form of a sellers’ initiative.

Alternative scenario: if the price breaks down through the 1.2766 support level and fixes below, the downtrend will likely resume.

News feed for 2021.12.21:

• – Canada Retail Sales (m/m) at 15:30 (GMT+2).

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.

By Orbex

AUDUSD sees limited rebound

The Australian dollar softens over dovish RBA meeting minutes. The pair has met stiff selling pressure near the 30-day moving average (0.7220).

On the hourly chart, a bearish MA cross and a break below 0.7100 indicate weakness in the latest rebound. An oversold RSI may cause a brief rally, but the bears may sell into strength around 0.7160.

0.7050 at the base of the initial breakout is an important support. A lack of bids could send the Aussie to 0.6990 with the reversal attempt at stake.

XAGUSD to test demand area

Silver drops as the US dollar inched higher across the board. A bullish RSI divergence suggests a loss of momentum in the sell-off.

Then the recent surge has broken above multiple levels of resistance, prompting the short side to cover some of their bets. However, the bulls may need to defend their gains after the initial push overextended.

The demand zone between last September’s low (21.40) and 21.80 is critical in keeping the rebound valid. 22.65 is now a fresh resistance before a full-blown recovery could materialize.

US 30 struggles for support

The Dow Jones retreated as major countries imposed curfews ahead of the holiday season. Following a double top under 36200, a drop below 35450 has broken buyers’ attempt to resume the rally.

The index is struggling to hold above the base of the December recovery (34800) which coincides with the 61.8% Fibonacci retracement level of the rally from 34000.

Buyers will need to lift 35620 before they could attract followers’ attention. 34000 is the daily support to safeguard the bullish bias in the medium-term.

Article by Orbex

Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

EURUSD is trading at 1.1253; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 1.1265 and then resume moving downwards to reach 1.1145. Another signal in favour of a further downtrend will be a rebound from the downside border of the Triangle pattern. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 1.1325. In this case, the pair may continue growing towards 1.1415. To confirm further decline, the asset must break the support level and fix below 1.1205.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is trading at 0.7105; the instrument is moving inside Ichimoku Cloud, thus indicating a sideways tendency. The markets could indicate that the price may test the cloud’s upside border at 0.7125 and then resume moving downwards to reach 0.6965. Another signal in favour of a further downtrend will be a rebound from the rising channel’s downside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 0.7190. In this case, the pair may continue growing towards 0.7280.

BRENT

Brent is trading at 71.00; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 73.05 and then resume moving downwards to reach 63.45. Another signal in favour of a further downtrend will be a rebound from the descending channel’s upside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 75.65. In this case, the pair may continue growing towards 77.65.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

As we can see in the H4 chart, EURUSD is trading not from the “oversold area”. In this case, the price is expected to rebound from 0/8 and then resume growing to reach the resistance at 2/8. Still, this scenario may no longer be valid if the price breaks 0/8 to the downside. After that, the instrument may fall towards the support at -2/8.

In the M15 chart, the pair may break the upside line of the VoltyChannel indicator and, as a result, continue its growth.

GBPUSD, “Great Britain Pound vs US Dollar”

In the H4 chart, GBPUSD is trading below the 200-day Moving Average, thus indicating a descending tendency. In this case, the price is still expected to test 4/8, break it, and then continue falling towards the support at 3/8. However, this scenario may no longer be valid if the price breaks 5/8 to the upside. After that, the instrument may correct to reach the resistance at 6/8.

As we can see in the M15 chart, the pair has broken the downside line of the VoltyChannel indicator and, as a result, may continue trading downwards.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.1329
• Prev Close: 1.1236
• % chg. over the last day: -0.83%

The German producer price index, which shows the inflation rate between factories and large companies, reached a new absolute record of 19.2% on an annualized basis. High energy prices remain a major factor in the rise in inflation. Energy prices increased by 49.4% this year due to a strong increase in natural gas prices of 83.4%. Spain’s inflation rate reached 5.5%. This is less than forecast, but inflation is at its highest level in 29 years, and it is rising faster than wages. The consumer price index in the Eurozone remained at 4.9% as expected.

Trading recommendations

• Support levels: 1.1230, 1.1168
• Resistance levels: 1.1265, 1.1323, 1.1360, 1.1436, 1.1535, 1.1613, 1.1667, 1.1717

From a technical point of view, the EUR/USD on the hour time frame is still bearish. The price is trading in a wide corridor. Against the background of a sharp strengthening of the dollar index on Friday, the EUR/USD quotes fell sharply. The MACD indicator has become negative, sellers’ pressure prevails. Under such market conditions, traders should consider sell positions from the resistance levels around the moving average. Buy trades can be considered on the lower time frames after the price fixes above the level of 1.1265.

Alternative scenario: if the price breaks out through the 1.1360 resistance level and fixes above, the mid-term uptrend will likely resume.

There is no news feed for today.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.3318
• Prev Close: 1.3235
• % chg. over the last day: -0.63%

UK retail sales increased by 1.4% in November; a rise of 0.8% was expected. Omicron strain infections in the UK continue to rise before the Christmas holidays. Official figures show a 52% increase in illnesses over the past week. Across the country, Premier League games, which have always been considered the most popular entertainment for Brits over the Christmas vacations, have begun to be canceled.

Trading recommendations

• Support levels: 1.3220, 1.3189
• Resistance levels: 1.3272, 1.3301, 1.3365, 1.3434, 1.3507, 1.3575, 1.3685

On the hourly time frame, the trend on GBP/USD is still bullish. But the rise in the dollar index led to the weakening of the British currency. The MACD indicator has become negative, sellers’ pressure prevails. Under such market conditions, traders should consider buy positions from the nearest support levels but only with additional confirmation in the form of a buyers’ initiative. Sell trades can be considered from the resistance levels near the moving average.

Alternative scenario: if the price breaks down through the 1.3189 support level and consolidates below, the bearish scenario will likely resume.

There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev Open: 113.62
• Prev Close: 113.70
• % chg. over the last day: +0.07%

From a fundamental point of view, the monetary policy of the Bank of Japan is aimed at active economic stimulation, while the US Federal Reserve, on the contrary, accelerated the reduction of the quantitative easing program last week. Such a situation is in favor of further growth of USD/JPY quotes.

Trading recommendations

• Support levels: 113.30, 112.62, 112.30
• Resistance levels: 113.95, 114.17, 115.15, 115.50

The global trend on the USD/JPY currency pair is bearish. The price failed to break out through the f priority change level and again returned to the wide corridor. Under such market conditions, traders can look for sell positions from the resistance level of 113.95, but with additional confirmation. Buy positions should be considered from the 113.30 support level, but with additional confirmation in the form of a buyers’ initiative or after the price breaks out the priority change level.

Alternative scenario: if the price rises above 114.17, the uptrend will likely resume.

There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev Open: 1.2773
• Prev Close: 1.2887
• % chg. over the last day: +0.89%

Federal Reserve officials said Friday that the first interest rate hike may come as soon as March. Investors began to shift their portfolios back to “cash”, which led to an increase in the dollar index. The rise in the dollar led to a decline in major currencies against the US dollar. The Canadian dollar is a commodity currency, so it is highly correlated with both the dollar index and oil prices. Oil prices are declining sharply amid the rapid spread of the Omicron strain. All of these factors are weakening the Canadian currency.

Trading recommendations

• Support levels: 1.2828, 1.2721, 1.2677, 1.2638
• Resistance levels: 1.2918, 1.2951

From a technical point of view, the USD/CAD currency pair trend is bullish. The MACD indicator has become positive, the buyers’ pressure has increased, there are no signs of reversal at the moment. Under such market conditions, it is better to look for buy deals from the support levels near the moving average on the lower time frames. Sell deals should be considered from the false breakout area, but with additional confirmation in the form of a sellers’ initiative.

Alternative scenario: if the price breaks down through the 1.2766 support level and fixes below, the downtrend will likely resume.

There is no news feed for today.

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.

by JustForex

Last week, investors were focused on the decision of the central banks in the United States, Great Britain, Switzerland, Japan, the Eurozone, and closely watched inflation data in European countries, Great Britain, and Canada. Following Wednesday’s FOMC meeting, the US Federal Reserve doubled the pace of reducing the quantitative easing program to $30 billion a month. At the same time, Fed officials forecast 3 rate hikes in 2022 and 3 rate hikes in 2023. On Thursday, the Bank of England unexpectedly raised its key rate to 0.25% from 0.1%. At the same time, the central bank has left the volume of the program of state bond purchase at the level of 875 billion pounds.

The European Central Bank left monetary policy unchanged but raised its inflation forecasts and lowered expectations for economic growth in 2022 because of the Omicron option. The Swiss National Bank (SNB) stayed true to its ultra-soft monetary policy, deviating from its tightening course. As for inflation, the consumer price index and the producer price index broke records in nearly all countries.

It is not surprising that more and more central banks are turning to more aggressive measures to fight inflation, from cutting stimulus programs to raising interest rates. Federal Reserve officials said on Friday that the first interest-rate hike could come as soon as March. Investors began shifting their portfolios back to the “cash,” which led to an increase in the dollar index and a decrease in the stock indices quotes.

The US stock market closed in the red area on Friday. The Financial sector fell by 2% as 10-year yields fell below 1.4% due to concerns about the impact of the Omicron strain. The Dow Jones index (US30) decreased by 1.48% (-1.65% for the week), the S&P 500 index (US500) decreased by 1.03% (-1.90% for the week), and the NASDAQ technology index (US100) lost 0.07% and became the leader of the fall for the week (-2.89%) among US indices.

A Goldman Sachs study found that the US stock market has grown very disproportionately over the past year. The giants TSLA, NVDA, GOOGL, MSFT, and AAPL showed 35% growth in the S&P 500 index. And if you look at April, they gave a total of 50%. FB and AMZN increased slightly, and the remaining 493 companies in the index traded within +-2% over the past year.

At the end of each year, the largest investment companies evaluate the prospects for markets and give forecasts for the main stock indices. JPMorgan Chase Bank predicts growth in the US stock market next year. Analysts expect the rise of the S&P 500 index (US500) to 5050 points. The potential growth from current levels is about 8%. The chief strategist of Goldman Sachs, David Kostin, expects that by the end of 2022, the S&P 500 (US500) index will rise to 5100 points (+9%) due to the continued growth of corporate earnings. Morgan Stanley expects the S&P 500 (US500) index to decline to 4,400 points over the next 12 months.

Pharmaceutical company Pfizer expects sales of the Covid-19 vaccine to be about $31 billion in 2022.

The World Health Organization said a variant of the Omicron coronavirus had been detected in 89 countries. According to the study, the probability of re-infection with Omicron is five times higher than that of the Delta. Scientists predict that Omicron will lead to record hospitalizations and tremendous strain on health care systems in all countries.

European stock indexes were traded without a single dynamic on Friday. British FTSE 100 (UK100) gained 0.13% on Friday (-0.30% for the week), German DAX (DE40) decreased by 0.67% (-0.78% for the week), Spanish IBEX 35 (ES35) decreased by 0.82% (-0.78% for the week) and French CAC 40 (FR40) lost 1.12% and became the leader of the fall among the main European indices.

France’s consumer price index increased to 2.8% in November. According to INSEE, the main reasons for the increase were energy prices, industrial goods, and services. Spain’s inflation rate reached 5.5%. This is lower than forecast, but the overall picture remains the same: inflation is at its highest level in 29 years and is rising faster than wages. Germany’s statistical data showed that producer price inflation reached its highest level since 1951 at 19.2%.

Consumer prices in the Eurozone remained at a 4.9% level. Omicron strain infections continue to rise in the UK. The Netherlands imposed a lockdown until January 16 due to an increase in Omicron cases: stores, bars, restaurants, and other public places of prime necessity will be closed from December 19.

The EU has extended sanctions against Russia for six months.

Asian markets mostly traded in negative territory on Friday. Japan’s Nikkei 225 (JP225) decreased by 1.79% (-0.56% for the week), Hong Kong’s Hang Seng (HK50) decreased by 1.20% (-4.33% for the week), and Australia’s S&P/ASX 200 (AU200) added 0.11% (-0.67% for the week). China’s central bank cut its benchmark interest rate for the first time since the pandemic. The People’s Bank of China cut the one-year lending rate to 3.8% from 3.85%. The five-year lending rate remained unchanged from the previous month at 4.65%. In China, domestic gasoline and diesel prices have been lowered since December 18.

At the commodities market, futures on orange juice (+9.03%), timber (+1.85%), and palladium (+1.5%) showed the biggest gains by the end of the week. Futures on natural gas (-6.52%), Brent oil (-3.03%), sugar (-2.94%), and WTI crude oil (-2.13%) showed the biggest drop.

Oil prices fell again last week, and gold closed above $1,800 a troy ounce for the first time in a month. The decline in oil prices has been attributed to Omicron fears, leading to a drop in fuel demand and last week’s sharp drop in crude inventories. Gold ended the week with 1.1% growth, its highest weekly gain since early November. The rise in gold came after the Federal Reserve announced its heightened concern over inflation in the US and began cutting the QE program more quickly while scheduling several interest rate hikes next year. On the one hand, this should, on the contrary, have led to a decline in gold prices. But because of high inflation and low prices for the “yellow metal,” investors began to buy gold again as a hedge against inflation.

Main market quotes:

S&P 500 (F) (US500) 4,620.64 −48.03 (−11.03%)

Dow Jones (US30) 35,365.44 −532.20 (−11.48%)

DAX (DE40) 15,531.69 −104.71 (−10.67%)

FTSE 100 (UK100) 7,269.92 +9.31 (+0.13%)

USD Index 96.57 +0.63 (+0.66%)

• – Australia Mid-Year Economic and Fiscal Outlook at 02:30 (GMT+2);
• – China PBoC Loan Prime Rate (m/m) at 03:30 (GMT+2).

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.