US Brief: top Trade Setups in Forex - A Day Before Christmas!
|On the forex front, the U.S. Dollar Index was broadly flat on the day at 97.68. The British pound dropped 0.5% to $1.2944 as investors grow increasingly concerned that U.K. Prime Minister Boris Johnson will take a tough stance in talks with the European Union in the wake of his party's victory in the December 12 U.K. election.
While, the AUD/USD climbed 0.3% to 0.6926 and NZD/USD rose 0.4% to 0.6633. Chinese Premier Li Keqiang said the government would continue to cut reserve requirement ratios for banks and introduce measures to lower overall borrowing costs for small firms.
XAU/USD - Ascending Triangle Breakout
The safe-haven-metal-prices rose and hit the six-week high mainly due to the worrisome news from China's Global Time, weaker U.S. data, and hard Brexit risk. All of these fundamentals extended support to the gold prices. The precious metal gold is consolidating near the 1,489.12 after hitting the high level of 1,493.
Gold prices climbed more than 15% during 2019, which is the most significant annual increase in gold prices since 2010. Back then, the yellow-metal gold prices were high, almost 30% in the wake of the global economic slowdown.
As per the market sentiment, the current bullish rally of the yellow metal is mainly due to the geopolitical turbulence and low-interest rates. The primary reason behind gold's price movement has been lower global interest rates due to intensified geopolitical tension in Europe regarding Brexit. Moreover, the Sino-US trade war has also been the driver of gold prices.
According to forecast, the safe-haven-metal prices will be traded between the $1,300 and $1,600 ahead in 2020 in the wake of the United States and China trade talks result.
Looking forward, the investors will keep their eyes on the trade/political headlines. The US Richmond Fed Manufacturing Index for December will also remain in highlights for the fresh impulse about the next Fed rate.
XAU/USD - Daily Technical Levels
|
Support |
Pivot Point |
Resistance |
|
1489.58 |
1491.12 |
1491.91 |
|
1488.79 |
1493.45 |
|
|
1486.46 |
1495.78 |
XAU/USD - Daily Trade Sentiment
As predicted earlier, the yellow metal gold trades higher after breaking above the 1,480 resistance level. The traders continue to drive gold prices higher near 1,488 while the initial target lives around 1,492 level. On the downside, gold's support stays to stay near 1,480. The RSI and MACD are still holding bullish sentiment today.
USD/JPY - Sideways Sessions Continues Ahead of Holiday
The USD/JPY currency pair mostly remain flat and trades near the 109.40 despite the positive comments from the BOJ minutes. As of writing, the USD/JPY currency pair is trading at 109.38 and consolidates in the narrow range between the 109.37 / 109.40.
The BOJ's minute statement highlighted the downside risk along with an agreement between the policymakers that price stability target will not be lost.
Traders have recently been focusing on the US-China trade war because China criticized U.S. interference in matters relating to Hong Kong and Taiwan. On the other hand, U.S. President Donald Trump signaled closeness to sign the phase-one deal. There is no significant event and headlines ahead of the Christmas holidays. However, trade/political headlines will be followed for fresh direction.
USD/JPY - Daily Technical Levels
|
Support |
Pivot Point |
Resistance |
|
109.17 |
109.38 |
109.58 |
|
108.97 |
109.8 |
|
|
108.56 |
110.21 |
USD/JPY - Daily Trade Sentiment
On the 4-hour chart, the USD/JPY extends to trade in a tight area, essentially in the trading range of 109.700 - 109.200. The USD/JPY has achieved the 38.2% Fibonacci retracement near 109.200. For now, this level is likely to extend support to the USD/JPY near 109.200. The 50 periods EMA is also holding the USD/JPY pair over 109.200 level today. Although the RSI and MACD are staying in the selling region. The idea is to remain bullish over 109.300 today.
AUD/USD – Triple Top Resistance In Focus
The AUD/USD currency pair sidelined and consolidates in the narrow range between the 0.6920 / 0.6925, mainly due to the lack of any firm directional bias. As of writing, the currency pair is currently trading at 0.6924.
The currency pair failed to maintain its recent positive momentum to trade near two-week highs. The AUD/USD pair is consolidating in a narrow trading range amid a subdued trading action on Tuesday. For now, the forex market is digesting the latest optimism regarding an incomplete US-China trade agreement. Alongside this, the traders wait for fresh catalysts ahead of taking more trades in the AUD/USD.
Traders have recently been focusing on the US-China trade war because China criticized U.S. interference in matters relating to Hong Kong and Taiwan. On the other hand, U.S. President Donald Trump signaled closeness to sign the phase-one deal.
Earlier, the AUD/USD currency pair gained support from the downbeat performance of the United States, in particular, the weaker Durable Goods Orders and New Home Sales released on Monday.
AUD/USD - Technical Levels
|
Support |
Pivot Point |
Resistance |
|
0.6869 |
0.6879 |
0.6896 |
|
0.6852 |
0.6906 |
|
|
0.6824 |
0.6933 |
AUD/USD - Daily Trade Sentiment
The bullish bias of the Australian dollar leads the AUD/USD higher towards the triple top resistance mark of 0.6930. The AUD/USD has developed a bullish engulfing candle on the 4-hour graph, which has concluded under the triple top resistance of 0.6930. The formation of candles under this 0.6930 is increasing the chances of a bearish reversal in the AUD/USD.
The RSI and MACD are still trading in the bullish region, but these are very close to exhibit a bearish crossover. The plan is to stay bearish below 0.6930 to aim 0.6900 and 0.6870 in the AUD/USD.
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