Currencies
- EUR/USD- formed a downward wedge on a 60 minute time frame. The Support is near the 1.3520 and resistance at 1.3779
- USD/JPY- the pair is moving up after breaking out of a reverse head and shoulder pattern on a 60 minute time frame. The resistance is near the 103.55 and the support at 102.22
- GBP/USD- the pair is above its 50day and 100 day moving average on a 30 minute time frame, which is a bullish sign. The RSI and CCI are trading in line with the price action.
Indicators
Indices
- Asian Markets closed mixed on the second trading day of the week. The Nikkei index was the worst performer during the session and it closed lower with a loss of 0.17%. The index is down by nearly 0.36% in the past 5 days
- European stock markets are trading higher during the early hours of trading. The IBEX index is the best performing index during the session and it is trading higher with a gain of 1.21%. The index is up by almost 1.42% in the past 5 days.
- US Indices futures are trading higher ahead of the consumer confidence economic data. Most indices closed lower yesterday and the NASDAQ index was the worst performer with a loss of 1.07%
TOP News
- The economic data – Business confidence for Australia matched the expectations of 6.
- In Japan, the corporate service index on annual basis, shown improvement during the month of December with the final reading of 1.3% which was nearly up by 1.2% as compared to November
- Turkey and France will be working together towards a nuclear deal, which both countries signed yesterday
Things to Remember
- Stops are the most important aspect of systematic trading
Market Sentiment
- Gold. The precious metal trading above the 200 day moving average on a 30 minute time frame which means that the recent uptrend is still intact. However, this trend is weak, as the price is below the 100 day moving average. The near term support is at 1252 and a break of this, will open the floor towards the 1242 and the resistance at the 1265 mark.
- Crude Oil: The black gold is trading in line with the RSI, which means that the bias could be to the downside. The near term support is near the 95 mark and resistance near the 99 level.
- VIX- Volatility index dropped by 3.97% yesterday.
News Agenda For Today
09:30 GMT
GBP – Prelim GDP q/q
13:30 GMT
USD – Core Durable Goods Orders m/m
15:00 GMT
USD – CB Consumer
Trend
The AUD and NZD are trending up against the dollar, while the CAD and EUR are trading lower against the dollar on an intra-day basis.
Disclosure & Disclaimer:
The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader. by Naeem Aslam