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Price Signal Summary - USD Rally Extends

MARKET INSIGHT
  • In the equity space, S&P E-minis remain volatile and continue to trade above Monday’s low of 4212.75. This week’s price action is allowing the recent oversold reading to unwind. Initial resistance to watch is yesterday’s high of 4446.25, Jan 26 high. The trigger for a resumption of bearish activity is 4212.75 low. EUROSTOXX 50 futures have recovered from overnight lows and activity remains volatile. Price continues to trade above Monday’s low of 3990.50 which is the trigger for a resumption of the recent bearish threat. Resistance is seen 4215.50, Jan 24 high.
  • In FX, the EURUSD move lower has accelerated and the pair has traded below support at 1.1222, Dec 15 low. This reinforces the current bearish threat and attention turns to the key support handle of 1.1186/85, the Nov 24 and Jul 1 2020 lows. A breach of this support would confirm a resumption of the broader downtrend. GBPUSD remains vulnerable and has traded lower again today. Short-term conditions remain bearish and the focus is on 1.3387, 61.8% retracement of the Dec 8 - Jan 13 bull phase. Recent USDJPY price action has defined a new key short-term support at Monday’s low of 113.47. The pair is trading higher once again today and has probed resistance at 115.06, the Jan 18 high. A clear break of this hurdle would reinstate a bullish theme and open 115.85/116.35, the Jan 10 / Jan 4 high . The latter is the bull trigger.
  • On the commodity front, the Gold rally has stalled. Yesterday’s sharp sell-off exposes support at $1805.9, Jan 18 low and the base of the bull channel at $1794.1 - the channel is drawn off the Aug 9 low. For now, the move lower is considered corrective, however a break of the channel base would alter the picture and highlight a more significant reversal. Resistance to watch is $1853.9, Jan 25 high. WTI futures resumed their uptrend yesterday, trading through $87.10, the Jan 20 high. This confirms a resumption of the uptrend and the focus is on the psychological $90.00 handle.
  • In the FI space, Bund futures traded higher Monday and probed key short-term resistance at 171.00, the Jan 13 high. A clear break of this hurdle would signal potential for a stronger short-term corrective bounce and open the 50-day EMA at 171.55. The trend remains down, a resumption of weakness would refocus attention on the bear trigger at 168.95, Jan 19 low. Gilts remain in a downtrend and below resistance at 123.79, Jan 13 high. A break of this hurdle is required to highlight a short-term base. The bear trigger is unchanged at 121.93, Jan 19 low.
Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets
Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets

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