GBP/USD is bounced from 1.3280 and still looking upside
December 23, 2020GOLD drop from opening session might be maintain 1880$ area.
December 28, 2020EURUSD
The EURUSD pair declines from highs, clinging onto the 1.2200 level ahead of the European open. The bulls ride the Brexit optimism wave, with a potential breakthrough likely to be announced at 1100 GMT.
The UK and the European Union are on the cusp of reaching a long-awaited Brexit trade deal. The optimism is the main driver behind the US dollar’s decline so far this Thursday, helping the upside in the main currency pair.
GBPUSD
GBP/USD couldn’t even take out the December 17th highs near 1.3620 and has pulled back 100 pips from the highs. If traders believe this is the real deal, watch for buyers to enter the market near 1.3445. Monday’s low at 1.3188 is the next support level. If a deal is announced, longer term price levels to watch are 1.3711 and 1.4376. If it turns out to be more of the same and GBP/USD sells off, the downside level to watch is 1.2675.
USDJPY
USD/JPY holds lower ground near 103.50 after recently declining below 200-HMA during early Thursday. The current downside momentum eyes an ascending support line from late-Friday, near 103.40 whereas any further weakness will direct sellers toward 103.20 and the 103.00 round-figures. Alternatively, an upside clearance of 200-HMA and stated resistance line, respectively around 103.55 and 103.65, will eye for the 104.00 before heading to the monthly top of 104.75.
AUDUSD
The AUD/USD pair edged higher through the Asian session on Thursday, with bulls awaiting a sustained move beyond the 0.7600 mark round-figure mark. Despite the supporting factors, the AUD/USD pair remained below weekly tops as investors now seemed reluctant to place any aggressive bets amid relatively thin liquidity conditions ahead of the Christmas break.
USDCAD
The Canadian dollar rose above 78 US cents in early-December, hitting its highest level in two and a half years. That represents an increase of about 9 cents from its March low. Nonetheless, loonie’s recovery is losing momentum and though economists at RBC Economics expect the Canadian dollar to stay robust in the first half of 2021, the USD/CAD pair is set to recover toward end-2021.
WTI crude oil prices bounced off the short-term 20-day Simple Moving Average, following the bullish implications of a ‘Golden Cross’ formed back in late November. Moreover, prices may aim for the 49.42 inflection point which was established back in early February. A climb above resistance would subsequently expose the February high at 54.45.
XAUUSD
Gold prices continue adhering to the short-term rising trend line from late November. At the same time, Gold is struggling to make further upside progress beyond the 50-day SMA as prices hover above the 1848 – 1863 inflection zone. A push above ‘potential resistance’ on the daily chart below could open the door to a reversal of the dominant downtrend since August.