The EUR/USD started a new uptrend and climbed above 1.2100, but faces hurdles. It started a fair rebound and cleared the 1.2120 resistance. There was also a break from the 50 Fib retracement level which dropped from the highest 1.2189 to the lowest 1.2059. However, the pair appears to be facing a number of significant hurdles starting with 1.2160 and a connecting bearish trend line. The next big resistance is almost 1.2200 or 200 normal moving average (4 hours). Beyond the trend line, resistance and 1.2200 may open the door for a reasonable rise in the coming sessions. In contrast, EURUSD cannot continue above 1.2160 or 1.2200.There is a risk of a further decline towards the 1.2060 support zone.
The GBPUSD has support at 1.36 and while that holds the currency could remain within 1.36-1.3750/1.38 for the near term. Note that 1.3750-1.38 is an immediate resistance and while that holds, Pound could range in a narrow 1.36-1.38 for the near term.
The USDJPY pair is only bullish while trading above the 104.30 level, key resistance is found at the 105.00 and 105.50 levels. The USDJPY pair is only bearish while trading below the 104.30 level, key support is found at the 104.10 and 103.80 levels.
The AUDUSD has dipped sharply towards 0.76 but needs to break below 0.76 in order to head lower towards 0.7550-0.75 in the medium term before seeing a bounce from there in the longer run. Else if AUDUSD holds above 0.76 immediately, we may expect a rise towards 0.77 or higher from current levels itself. Wait and watch price action near 0.76.
USD/CAD remains neutral first. Rebound from 1.2588 short term bottom is expected to extend higher as long as 1.2684 minor support holds. Break of 1.2880 will target 1.2994 support turned resistance. However, break of 1.2684 minor support will argue that the rebound has completed and bring retest of 1.2588 low
The WTI markets continue to Consolidate for the third week. Price action continues to trade nearly flat for three weekly sessions so far. As a result, price increases are firmly anchored in the sideline between 53.77 and 51.87. The flat trade stems from concerns about vaccine rollouts that could potentially slow the global economic recovery. . The 51.87 level price action is repeatedly tested, which is still maintained. However, a break below this level could potentially deliver a short-term correction on the horizon. We maintain that the down target has stayed close to the 49.00 handle.
The precious metal tested 1880 on the upside on Friday before falling from there. Immediate range of 1880-1820 seems to be holding well for now and an eventual rise towards 1900 and higher looks more likely in the medium term. Only a break below 1820, if seen would make Gold vulnerable to a sharp fall targeting 1780-1740. While above 1820, view is bullish.
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.