Technical analysis on USDJPY, AUDUSD and EURGBP: 22th January -27th January

USDJPY technical analysis: 22th January -27th January

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USDJPY daily chart

In the last trading week, the USDJPY pair dropped initially but the pair managed to recover in the final part of that last trading week. The pair dropped to 112.56 level and the pair rebounded from this critical support level. For the next trading week, the initial bias for this currency pair is bullish. We might see a test of 115.62 resistance level this resistance level is also the 50 % Fibonacci level (swing high 15th December 2016 to sewing low 17th January 2017) .which might restrict the upside trend. If pair manages to break this resistance level then we might see another bullish run in the currency market. The pair might hit the next resistance level at 116.32 which is the 61.8% Fibonacci level for this currency pair. If we look at the chart there is not much resistance after 116.32 level so if buyer manage to break this level we might see a strong bluish run in the market. Many professional traders’ looks forward to buying this pair if pair manages to breach the 61.8 Fibonacci level then The price might touch the top price of this currency pair which is at 118.60 level.

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Price of gold edging higher in the New Year beginning

There has been a massive confusion into mind of gold investors in the last year as the price of yellow metal sank into the market due to the intense heat of the green bucks. Most of the gold investors were overly cautious about the gold price since it was breaking critical support level one after another. The price of gold is measured in the dollar so a slight variation in the value of the green bucks significantly impacts the gold market in the global community. The U.S dollar gained its first bullish momentum in the market on 8th November during the U.s presidential election held on 2016.Mr. Trump becomes the newly elected president and gave the dollar its first strongest boost in the year by stating that they are going to increase the fiscal spending and going to inaugurate tax cut policy in the near future. Such an optimistic statement from the newly elected president created extensive positive consumer sentiment and push the green bucks higher in the global market. On that event the price of gold sharply dropped in the market as the weight of the green bucks was significantly heavy in the global world.

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Mixed sentiment in the oil market as the new trading year starts

There has been a massive chaos in the energy field in the last year. All the leading investors in the global world was in fear to see the sharp fall in the price of oil. The excessive supply in the production of oil is forcing the investors to lower down the price of oil in the global market. Due to variations of the demand and supply line in the financial market CFD trading was extremely difficult in the last year. Even the price of coking coal was suffering from bearish pressure in the global market. But things settled down to a great extent in the global economy after the Chinese government initiated 275 working day policy on the coal miners. Due to restriction in the production of coal, the price of coking coal surged higher in the global market. After that, the OPEC member decided that they should restrict the bearish movement in the gold price in order to bring stability in the energy field. But most of the OPEC leaders were overly cautious about their plan. Meanwhile, during that interval, the oil price suffered an extensive loss in the global market.

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Dollar bulls losing their steam prior to the new trading year

In the last year, the dollar bulls have shown an immense amount of strength in the global market and pushed the dollar higher against its all major rivals. The green bucks gained its first bullish momentum in the market during the U.S presidential election held on 8th November 2016.Mr. Trump surprised the whole world by becoming the new U.S president and he gave the dollar its first boost by stating that they are going to increase the fiscal spending in the very beginning of the next year. Most importantly he also stated that they are going to initiate tax cut policy to give a better standard of life to their citizen. Such an optimistic statement from the newly elected president create extreme positive consumer confident in the U.S consumers. The long anticipated rate hike decision was finally implemented by the FED in their last FOMC meeting minute as they hike their interest rate on the basis of 25 points. The green bucks became broadly stronger against its major rivals in the forex market. However, most of the investors are thinking that the dollar will lose its strength in the near future.

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Dollar slips in last Friday’s trading session yet holds the ground firmly

There has been a massive chaos in the global market from the very beginning of the year 2916.Most of the professional traders were cautiously waiting for the rate hike decision from the FED from the very beginning of the year 2016.The performance of the U.S economy was significantly good in the last two couple of months and this helped the FED to hike their interest rate in their last FOMC meeting minutes. The dollar started to gain its strength in the global market after the U.S presidential election which held on 8th November 2016.The dollar gained a significant amount of strength in the global market after U.S president Mr. Trump stated that the U.S government will increase the fiscal spending and they will also work with the current tax conditions of the U.S citizen. Read more