EUR/USD gained around 67 pips in Thursday’s trading making it the top performing pair against the majors. The pair looks to be back in a well-established uptrend after breaking above a consolidation zone in place since August. Key resistance at the 1.2265 level has been broken to the upside. The next major target resistance levels are 1.2415 and 1.2535 in extension. A break below the 20-day moving average would be a bearish warning signal. Key support can be seen at the breakout level of 1.202.
The GBPUSD was halted at the 1.3618 resistance level, while the follow-up corrective phase will most likely be limited to the level of the first support at 1.3500. The sentiment remains positive, for another test of the resistance zone. On the other hand, a negative scenario for the pound cannot be yet ruled out, should the negotiations between the EU and the United Kingdom take a turn for the worse.
The USDJPY continued to appreciate against the retreating U.S. dollar, reaching levels of 102.85 during the last trading session. However, the breach of the support at 103.00 was not confirmed due to the subsequent corrective move, which would most likely be limited to the resistance level of 103.72. Negative sentiments remain intact, with the most likely scenario being a move towards the support level at the not-so-distant level of around 101.00.
AUDUSD fell from levels near 0.7638 yesterday despite the rally seen in commodities. The sharp rise expected in Copper, if seen could be bullish for Aussie also in the near term taking it higher towards 0.77 on the upside.
USD/CAD is staying in consolidation from 1.2668 temporary low and intraday bias remains neutral. In case of another recovery, upside should be limited by 1.2928 support turned resistance. On the downside, break of 1.2688 will resume recent down trend for 161.8% projection of 1.3389 to 1.2928 from 1.3172 at 1.2426.
WTI crude oil prices continue to climb after the bullish implications of a ‘Golden Cross’ from November. Prices are on the cusp of the early February inflection point at 49.42. A push above this price exposes the February peak at 54.45. Keeping the upside momentum could be the moving averages pointed out on the daily chart below.
Gold has moved up significantly and could soon be headed towards 1900-1920 on the upside before a corrective decline is seen again in the longer run. Immediate 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.