GBP/USD, AUD/USD, USD/JPY – Charts for Next Week & More

Charts to Watch:

  • GBP/USD coiled adult for a pierce to shortly unfold
  • AUD/USD is trade down into vital support
  • USD/JPY is subsidy down into trend support

GBP/USD bounced off support yesterday only before to a BoE, and gathering serve aloft in a arise of a meeting. The convene doesn’t meant most so far, though, as cost stays good contained within a building crowd that is seen as heading a suggestive pierce soon.

A mangle above 13173 could get a upside going, while a mangle next 12954 competence maybe be even some-more suggestive given how most support between there and a 13000-line we have seen this month. For now, patiently watchful for a cue.

GBP/USD Daily Chart (coiled up, prepared to make a move)

GBP/USD daily chart, coiled up, prepared to make a move

GBP/USD Chart by TradingView

USD Forecast
USD Forecast

AUD/USDhas been tanking utterly hard, and during a time of this essay it is contrast vital support underneath 6700. It’s been an extended pierce to a downside, and on that it competence be on a oversold side. However, watchful for bullish cost movement to initial come in looks like a advantageous play. A mangle next 6671 will have Aussie during it’s misfortune levels given 2009.

AUD/USD Daily Chart (at vital support)

AUD/USD daily chart

AUD/USD Chart by TradingView

USD/JPYhas been subsidy down solemnly towards a 200-day and rising trend-line from a Aug low. It topsy-turvy yesterday from only above it, though could do some some-more probing before perplexing to indurate it as support. Should USD/JPY mangle by and offered accelerate it expected means we are also saying some-more de-risking in a equity markets.

USD/JPY Daily Chart (support only below)

USD/JPY daily chart, support only below

USD/JPY Chart by TradingView

For all a charts we looked at, check out a video above…

Resources for Index Commodity Traders

Whether we are a new or an gifted trader, DailyFX has several resources accessible to assistance you; indicator for tracking trader sentiment, quarterly trading forecasts, methodical and educational webinars hold daily, and trading guides to assistance we urge trade performance.

We also have a array of guides for those looking to trade specific markets, such as a SP 500, Dow, DAX, gold, silver, crude oil, and copper.

—Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter during @PaulRobinsonFX

AUD/USD At Major Level On US Core PCE

AUD/USD Talking Points:

Since a London event open (3 AM ET) US Dollar cost movement has been bearish, promulgation a index down nearby a 97.75 level. In a same time period, a Australian Dollar has seemed generally supportive to US Dollar strength. The span has been incompetent to locate new lows of 0.6710 as a US Dollar index has depressed by over 0.15%. When compared to GBP/USD, it is transparent to see only how supportive a Australian Dollar has been to US Dollar Strength.

DXY, AUD/USD, GBP/USD 15-Minute Price Chart

DXY, AUDUSD, GBPUSD 15 notation Price Chart

Chart prepared by Austin Sealey; AUDUSD on TradingView

The Core PCE Price Index is ordinarily used to magnitude acceleration in a US. The dual anniversary and some-more flighty food and appetite prices are left out to paint a clearer design of cost boost or inflation. This measure, along with CPI, is closely watched by a Federal Reserve as a partial of last financial policy. As a reminder, aloft acceleration in a brief tenure indicates mercantile strength. This morning’s print, as can be seen in a DXY draft below, has had an altogether notation effect, and a index is still incompetent to sire support.

DXY 60-Minute Price Chart

one hour dxy cost chart

Chart prepared by Austin Sealey; DXY on TradingView

US Core PCE comes in following Wednesday’s FOMC rate preference and yesterday’s annualized 4th entertain 2019 US GDP information release. The US Dollar has witnessed some bearish cost movement following both information releases, though has given found support during a 97.80 spin that has come into play as resistance branch into support given saying a 2-hr candle shutting above a 97.85psychological level.

As risk appetites will continue to change widely in a entrance weeks, traders spin their eyes toward a US production and practice sectors for Feb 3rd recover of ISM data.

–Written by Austin Sealey, Market Analyst for DailyFX.com

US Dollar Suffers, EUR/USD & GBP/USD Rise on Brexit Day

MARKET DEVELOPMENT US Dollar, GBP/USD, EUR/USD Analysis

USD: Month-end rebalancing flows has driven a US Dollar reduce with important offered seen opposite a Pound. Alongside this, a Euro has also found support from month-end dollar selling, that in spin has seen a Euro pull above 1.1050.

FX choice expiries: Vanilla options end during a 10am New York Cut

EURUSD 1.0990-1.1000 (1.9bln), 1.1040-50 (1bln)

EURGBP 0.8450 (700mln)

USDJPY 108.50 (1.1bln), 109.00-10 (700mln), 109.40-50 (700mln), 109.55 (1.2bln)

Today is Brexit Day, But What Next?

US Dollar Suffers, EUR/USD amp; GBP/USD Rise on Brexit Day - US Market Open

CAD: While a Canadian Dollar stays soft, it has pulled off event lows following improved than approaching GDP data. However, given a rising concerns over a coronavirus conflict a Canadian Dollar stays exposed to descending oil prices, that nears a bear market. Alongside this, following a new dovish change from a Bank of Canada, eyes will be on subsequent week’s work marketplace report, where a diseased news will see near-term dovish repricing of rate expectations.

US Dollar Suffers, EUR/USD amp; GBP/USD Rise on Brexit Day - US Market Open

Source: DailyFX, Refinitiv

Economic Calendar (31/01/20)

US Dollar Suffers, EUR/USD amp; GBP/USD Rise on Brexit Day - US Market Open

Source: DailyFX,

WHAT’S DRIVING MARKETS TODAY

  1. British Pound Latest: Sterling (GBP) Price Rally as The UK Leaves The EU” by Nick Cawley, Market Analyst
  2. Canadian Dollar Outlook – USD/CAD Ramping into Big Resistance Test” by Paul Robinson, Currency Strategist
  3. SP 500 Dow Jones Forecast: Fed Balance Sheet Key to Outlook” by Justin McQueen, Market Analyst

— Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX

US Dollar Slides as Chicago PMI Points to Continued Manufacturing Decline

Chicago PMI Talking Points:

  • The US Dollar forsaken as Chicago PMI printed a unsatisfactory figure of 42.9 this morning, blank expectations of 48.9
  • Manufacturing in a US entered a 5th month of contraction in December, accelerating fears of a tellurian slowdown
  • The University of Michigan’s final review on consumer view for Jan picked adult to 99.8, though did small to support USD debility

Hopes for a pickup in production activity were dampened this morning as Chicago PMI crossed a wires during a lowest symbol given 2015, adding to debility in a US Dollar. The production zone has engaged for 5 months now according to a Institute for Supply Management’s ISM production gauge. The US Dollar forsaken serve as a Chicago PMI news crossed a wires, with a DXY index dropping to a lowest spin given Jan 23rd, now trade during 97.66 from a 97.90 spin progressing this morning.

USD and TNX Chart

Regional Federal Reserve production surveys along with ISM’s informal reports such as this mornings Chicago news give insights into how production is behaving on a informal spin and in turn, provides clues to production activity in a US. This mornings skip might moderate expectations for subsequent weeks ISM production news that is approaching to cranky a wires during 48.5 that would send a US into a sixth month of contraction for a sector.

US Dollar Slides as Chicago PMI Points to Continued Manufacturing Decline

Source: Bloomberg

Digging into a total behind a title series for a recover paints a murky design for production activity in a vital mercantile heart for a Midwest. All components in a index declined from a prior months read. New orders fell to 41.5 from 47.6, highlighting a slack in production demand.

The consult asked participants a special doubt for Jan with a news from ISM stating, “Will a signing of a USMCA agreement urge your retailer lines?”. The answers showed small certainty for a pickup in activity from a recently sealed USMCA agreement with 60 percent of respondents awaiting no improvement.

Michigan view and US 10-Year Yield

The University of Michigan’s final review for Jan was expelled shortly after display a some-more certain note on a economy entrance in during 99.8, adult somewhat from a rough imitation of 99.1. However, a news did small to support USD or lift financier risk-appetite. The Michigan news was increased by a certain opinion on consumer finances as 53 percent of all consumers reported gains in their personal finances. The news points to serve spending ardour from US consumers, who have been peerless in gripping a US economy chugging along. Despite consumer certainty remaining returning to nearby historically high level, US book produce have continued to tumble as investors worry about a tellurian mercantile slowdown.

EUR/GBP Price Continues to Pressure Short-Term Support

Sterling (GBP) and Euro (EUR) Price, Chart and Analysis:

  • Eurozone GDP and Inflation trip lower, while German sell sales crater.
  • Sterling continues a post-BOE rally.

EUR/GBP – Unable to Break Resistance, Tests Support

As a UK prepared to finally leave a UK during 23:00GMT today, a Brexit proxy, EUR/GBP, continues to slip reduce and eyes levels final seen in mid-December. A extensive mangle and tighten subsequent here would assistance to endorse a longer-term bearish outlook.

Euro-Zone information expelled progressing currently showed expansion of only 0.1% in Q4, blank both expectations and final quarter’s 0.2%. Core acceleration in Jan also fell to 1.1% from a before month’s 1.3%, while CPI nudged adult 0.1% to 1.4%. In addition, French Q4 GDP slumped to 0.8%, blank expectations of 1.2% and a before entertain 1.4%, while German sell sales for Dec cratered to -3.3% opposite expectations of -0.5% and a before month’s 1.5%. The new confidence that a Euro-Zone economy has stabilized looks ungrounded on today’s numbers.

The British Pound on a other palm has preformed good in a final 24 hours after a Bank of England motionless to leave all financial process settings unchanged. Going into a assembly a 0.25% rate cut was labelled as a 50/50 call by a market, though MPC members motionless a wait-and-see proceed was justified. The assembly was also a final one chaired by administrator Mark Carney who maybe felt that hiking rates and flitting a rod to new administrator Andrew Bailey – who starts his tenure on Mar 17 – was not a right march of action.

EUR/GBP has depressed heavily given mid-August from a high around 0.9325 to a stream turn of 0.8415. The sell-off had small remit until mid-December though a draft now suggests that another mangle reduce could see sellers recover a top hand. The low imitation during 0.8277 on Dec 12 is a subsequent downside aim and subsequent here would see a span demeanour during a really low 0.8100s before 0.8000 ‘big figure’ support comes into play.

GBP Forecast
GBP Forecast

EUR/GBP Daily Price Chart (August 2019 – Jan 31, 2020)

EUR/GBP Price Continues to Pressure Short-Term Support

Traders might be meddlesome in dual of a trade guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are expected to be meddlesome in a latest Elliott Wave Guide.

What is your perspective on Sterling (GBP) and a Euro (EUR) – bullish or bearish?? You can let us know around a form during a finish of this square or we can hit a author around Twitter @nickcawley1.

WTI Crude Oil Tests Critical Support Zone: Can Oil Bulls Hold a Lows?

WTI Crude Oil Price Action Talking Points:

  • WTI wanton oil prices have depressed by as most as 21.8% in a month of January.
  • Oil bulls were in-control to start a year, though that quick changed.
  • WTI wanton oil is now contrast a vicious section of support that reason 3 tests final year.

WTI Crude Oil Falls to Critical Support Zone

It’s been a heartless month in wanton oil markets as a array of drivers have pushed prices down to a uninformed three-month-low. It didn’t start that way, however, as a discerning rush of fear shortly after a New Year open pushed WTI wanton oil prices adult to a uninformed eight-month-high, with a quick pierce above a $65 level. This was driven by fears of heightened tensions between a US and Iran that could, of course, pierce on supply disruptions. But as tensions calmed and cooler heads prevailed, Oil prices gave behind those gains and afterwards some; usually for another bearish motorist to take over after-the-fact.

This motorist is one that competence stay in a headlines for a while and given a significance of tellurian dynamics for oil prices, this could potentially keep vigour on a offer. The flourishing fear around Coronavirus hasn’t unequivocally been equivalent yet and a conditions continues to develop. The some-more fear that shows around this theme, a reduction people will be means to openly transport or even trade between countries, and that can serve subdue direct for oil.

At this point, WTI wanton oil is contrast a vicious support section that reason a lows via final year’s trade. This section is a feeder area of Fibonacci levels that runs from 50.54 adult to 51.68; a former turn is a 23.6% retracement of a Q4 2018 sell-off while a latter turn is a 61.8% retracement of a liberation pierce from that before bearish theme. This section reason 3 apart support tests final year, a final of that was in Oct before buyers came behind to pull into a finish of a year.

WTI Crude Oil Daily Price Chart: Return to Key Support

wti wanton oil daily cost chart

Chart prepared by James Stanley; Crude Oil on Tradingview

Can Sellers Breach a 50-Handle? And if So, Where to Next?

Support is doubtful to reason adult perpetually but, during this point, a bewilderment as to either this stream exam will reason or not comes down to matter of force and how aggressively sellers competence continue to push. Prior instances of support in this segment have mostly been joined with supply cuts or other wordiness from meddlesome parties that helped to lean a supply/demand equation behind into a preference of oil bulls. But, for this test, those same actors competence not have a same firepower as a stream bearish run is emblematic of a fear-based unfolding that, as yet, doesn’t have an answer or even most clarity.

On a longer-term basement and something that I’ve mostly discussed in webinars, time does not seem to be on a side of bulls in Oil. Similar to a shorter-term layout, there’s a turn of support sneaking next stream cost movement that’s reason 3 apart tests: This takes place around a 42-level, and this was a same cost that helped to detain that Q4 2018 sell-off. A crack of a 50-handle opens a doorway for another exam down around a 42-handle.

On a approach down to that three-year-low around 42, a intensity interlude indicate for a pierce could seem around 47.50, where exists a bit of Fibonacci confluence.

WTI Crude Oil Weekly Price Chart

wti wanton oil weekly cost chart

Chart prepared by James Stanley; Crude Oil on Tradingview

— Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX