EUR/USD has broken the 1.2250 and 1.2200 support levels to enter a short-term bearish zone. As a result, there was a sharp decline below the 1.2180 level and the 100 simple moving average ( 4-hours). The pair traded near the 1.2065 support level and also exceeded the normal moving average of 200 (4 hours). A low is formed around 1.2064 and the pair is currently consolidating losses. The first major resistance to the upside is close to 1.2100. The base resistance for the recent surge is close to 1.2180 and 200 SMA.
In contrast, the pair may not be able to make new gains above 1.2100 and 1.2120. In the specified case, there is a risk of a break below the 1.2065 support zone. The next major support is near the 1.2010 and 1.2000 levels. Overall, EUR / USD should stay above 1.2065 for a fresh move above 1.2180.
The British pound was back up to 1.3600 against the US dollar on Friday on risky sentiment. Technical analysis revealed that the GBPUSD pair is strongly supported by the 1.3520 region. Overall, the GBPUSD pair is still setting highs on the weekly timeframe so the bears still need to be careful at this stage. The GBPUSD pair is only bullish if it trades above the 1.3580 level. The key resistance is at 1.3660 and 1.3710.GBPUSD pair trades below the 1.3580, and then we may test the 1.3520 and 1.3460 support levels.
The USD / JPY pair took slight one-day losses during the early European session and was last seen near the daily lows in the 103.70 region.The pair failed to take advantage of its initial uptrend and instead found a new supply near 104.00 and can now be hit at the end of the four day old trading range. The safe haven yen benefited from the usual cautious sentiment and was seen as a key driver of pressure on the US dollar / JPY pair.
AUD / USD is relatively high, supporting 0.7535, especially if the US interest rate continues to rise. Below 0.7550 there is a risk of profit taking, but below that the support from major trends is strong and stable. The vertical and near bullish AUD / USD over the past two months has pushed the 21-day moving average to a parallel line near the upper channel and supports 0.7675 at 0.7678. The daily average and 200-day average profit of 0.7092 are much higher than expected.
USD/CAD remains neutral first. Near term outlook stays bearish as long as 1.2834 resistance holds. On the downside, break of 1.2623 will resume the down trend from 1.4667 to 61.8% projection of 1.4667 to 1.2994 from 1.3389 at 1.2355. On the upside, however, break of 1.2834 should indicate short term bottoming and turn bias back to the upside for 1.2957 resistance.
WTI has similar support near 51 and while that holds, we may expect a bounce towards 54-55 to be seen soon. A break below 51, if seen could drag the price lower towards 49. Watch price action near respective support levels.
XAUUSD prices remain in a bearish setup after breaking below the “Ascending Channel” in early January . Prices have likely found some near-term support at around US$ 1,807 – where the lower Bollinger Band and a previous support level intercept. The MACD indicator is trending lower, suggesting that bearish momentum might be prevailing in the near term. Breaking below the US$ 1,807 support may open the door for further losses with an eye on US$ 1,770 – the previous low.
Legal: CF Merchants is the trading name of Commodity and Forex Merchants registered and regulated in many Jurisdictions. CF Merchants Limited is regulated with license number 24535/2018, at Suite 305, Griffith Corporate Center, P. O. Box 1510, Beachmont, Kingstown, Saint Vincent and the Grenadines as an International Broker Company under the company act of Saint Vincent & the Grenadines. The objects of the Company are all subject matters not forbidden by International Business Companies (Amendments and Consolidation) Act, Chapter 149 of the Revised Laws of Saint Vincent and Grenadines 2009, in particular but not exclusively all commercial, financial, lending, borrowing, trading, service activities and the participation in other enterprises as well to provide brokerage, training and managed account services in currencies, commodities, indexes and leveraged financial instruments.
Commodity and Forex Merchants Limited is authorized under license number 1092420 by the Companies House, Cardiff, United Kingdom on 21st August 2017.
High Risk Investment Warning: Margin FX are leveraged products that carry an extraordinary level of risk to your funds. Trading is not suitable for everyone and may result in you losing significantly more than your investments and therefore, you should not speculate with capital that you cannot afford to lose. You should consider whether you understand how this work and whether you can afford to take the high risk of losing your money. All the trading related information on this website is general in nature and does not take into account your or your client’s personal intentions, financial conditions and needs. We encourage you to seek independent advice if necessary. It is the responsibility of the client to ascertain whether he/she is allowed to use the services of the CF Merchants based on the legal requirements in his/her country of residence. Please read full Risk Disclaimer for more details.
Regional Restrictions: CF Merchants (SV) Ltd does not provide services and accept applications from the residents of certain countries, such as United States of America, Canada, Israel, North Korea and Saint Vincent & The Grenadines. The statistics on this website is not directed at residents in any country or jurisdiction where such distribution or use would be contradictory to local law or regulation.