CFDs Technical Overview With a Priced in Hike By the Feds
Most markets are highly anticipating a hike today by the U.S. Fed with 0.25% basis to initial 1.25%. Analysts are supporting the rate hike decision especially that Mrs. Yellen has recently stressed out that any future hikes will be subject to economic data. As a result, we have seen the DXY rallying by $1.78 since Nov. 27th, soaring all currency rivals as rates will be increased as a done deal especially recent U.S. upbeat data.
Last year when the Fed hiked rates, market saw an opposite performance for the Dollar Index, and instead of further upside action, the DXY was sold off aggressively which leaves us wondering if the same scenario will be repeated as Déjà vu because market anticipated the hike and it was priced in. Now that we have covered this section, eyes will be focused on the FOMC statement and projections for 2018 whether they will drop a hawkish or dovish tone.
Last but not least, yesterday's democrat Jones winning U.S senate in Alabama state has flipped the cards for Trump and his tax plan final touch. Trump will cross wires today giving more hints about so the long awaited tax reform plan. As a result, the U.S dollar stands at two battles, first as FOMC released the statement, and second Trump's tax plan updates.
CFD's Technical overview:
MAR US DOLLAR
Closing price: 93.825
Target price: 93.755 achieved
Resistance levels: 93.755*, 94.01
Support levels: 93.89, 93.17, 92.77*
Trend: Sdwys/Up
trend reversal price: 92.77
Comment: The market has worked into a short term bottoming / bullish pattern with rallies pushing beyond the 93755* resistance, giving bull signals for a climb to 9434+. Any near term dips should try to hang in sideways congestion, stabilizing over 9317. A close under 9277* is needed to reverse back to lower prices.
MAR B-POUND
Closing price: 1.3366
Target price: 1.3289
Resistance levels: 1.3441-58, 1.3504*
Support levels: 1.3355, 1.3289*
Trend: Sdwys/Down
Trend reversal price: 1.3504
Comment: The market is signaling a short term negative turnover and warns for a larger selling wave to 1.3289*. A sustained press below 1.3355 will fuel selloffs. Any corrections contained to narrow sideways congestion should bear flag into additional selloffs. A close over 1.3504* is needed to reverse back to higher prices.
MAR CANADIAN$
Closing price: (77855)
Target price: None
Resistance levels: 7829, 7869*, 79585*
Support levels: 7760-45, 7672-
Trend: Sdwys/Down
Trend reversal price: 79585
Comment: The market still favors reactionary selloffs to test the previous week's low. A penetration below 7758-54 could possibly open up a bear target to 7672-. Any corrections will likely fade in the low 7800's. Only a close over 7869* stops aggressive bear forces. A close over 79585* is needed to mark a bull turn for a drive to 8000+/-.
MAR EURO
Closing price: (1.1821)
target price: None
Resistance levels: 1.1880, 1.1904, 1.1949*
Support levels: 1.1799*, 1.1728
Trend: Sdwys/Down
Trend reversal price: 1.1954
Comment: The current slide puts short term trend forces down and warns for a larger unfolding selling wave to 1.1700. Trade is poised for selling and a close under 1.1799* will fuel selloffs. Trade may recover for near term congestion up near 1.1900. However, a close over 1.1949* is needed to highlight a reversing upturn for a bull wave over 1.2000+.
MAR J-YEN
Closing price (88545)
Target price: None
Resistance levels: 88945, 89305*, 8984*
Support levels: 8831-, 87825-
Trend: Down
Trend reversal price: 89865
Comment: The market is in a downturn and suggests further washouts to 8831-. A close under 8831 is negative. We may see some corrective congestion, but keeping corrections trapped below 89305* should maintain a bear alignment. Only a close over 8984* alerts for a reversing turn.
MAR SWISS
Closing price: (10156)
Target price: None
Resistance levels: 1.0188, 1.0222, 1.0257*
Support levels: 1.0038-25, 1.0000-
Trend: Sdwys/Down
Trend reversal price: 1.0257
Comment: The market is short term bearish and a close under Friday's low alerts for a selling wave to attack the 1.0062 low. Suspect a fight to correct for a few days. Narrow corrective congestion around 1.0200 for a few days will likely bear flag. A close over 1.0257* is needed for a shift back to the upside.
MAR AUSSIE$
Closing price: (7554)
Target price: 7430
Resistance levels: 7579, 7592*
Support levels: 7495-?, 7430-10
Trend: Sdwys/Down
Trend reversal price: 7592
Comment: The market is bearish. Despite corrective rebounds the past couple days, the pattern alerts for a potential wash to 7430-. Trade is poised for follow through selloffs with a close under 7498 fueling declines. Any further corrections should struggle with previous congestion levels over 7550 and tight congestion should bear flag. A close over 7592* is needed for a reversing turnaround.
FEB GOLD
Closing price: 1246.40
Target price: 1233
Resistance levels: 1254.00-1256.00, 1260
Support levels: 1233- 1220+
Trend: Down
Trend reversal price: 1265.10
Comment: The market is bearish, alerting for an acceleration in the selloff, opening up potential for a drop to 1233. The pattern still warns for pressing selloffs. Any corrections will likely find downside forces keeping trade in sideways congestion, stopped in the upper 1250's. A close over 1265.10* is needed to alert for a reversing turnaround.