AUD/CHF rebounds strongly from near 0.7000

JFD Team JFD

AUD/CHF has been trading in a recovery mode yesterday, after it hit support near the crossroads of the psychological round number of 0.7000 and the upside support line drawn from the low of January 28^th.Today, the pair broke above yesterday’s high of 0.7125, which suggests that the buyers have stayed in the driver’s seat. Thus, we will adopt a bullish stance for now.

In our view, the move above yesterday’s high of 0.7125 may have opened the way towards Thursday’s high of 0.7260. If that barrier is not able to halt the advance, its break will confirm a forthcoming higher high on the daily chart and may set the stage for extensions towards the peak of December 3^rd, 2018, near the 0.7375 area.

Taking a look at our short-term oscillators, we see that the RSI has recently rebounded from near its 50 line and continues to point up, while the MACD, already above its trigger line, has just turned positive. Both indicators suggest that the rate may have started gaining upside speed again, which enhances the case for more advances.

In order to abandon the bullish case, we would like to see a clear dip below 0.7000. This would confirm a forthcoming lower low and will also place the pair below the aforementioned short-term upside line. The bears may push the action towards the low of February 18^th, at 0.6940, the break of which may allow extensions towards the low of the day before, at 0.6910. There, the rate may also test another upside support line, a medium-term one, drawn from the low of October 20^th.

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

Author

JFD Team

JFD

EUR/USD flat lines below 1.1900; divergent Fed-ECB expectations offer support

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1835-1.1830 region and oscillates in a narrow band during the Asian session on Thursday. Spot prices currently trade around the 1.1875 area, remaining nearly unchanged for the day and staying within striking distance of an over one-week high, reached on Tuesday, amid mixed cues.

GBP/USD slips heading into the Thursday trading window

The Pound Sterling pulled back from four-year highs on Wednesday, weighed down by a combination of Bank of England dovishness and UK political uncertainty, even as the US Dollar weakened on soft labor market revisions.

Gold posts modest gains above $5,050 as US-Iran tensions persist despite strong labor data

Gold price trades in positive territory near $5,060 during the early Asian session on Thursday. The precious metal edges higher despite stronger-than-expected US employment data. The release of the US Consumer Price Index inflation report will take center stage later on Friday.

Bitcoin holds steady despite strong US labour market

Bitcoin briefly bounced from $66,000 to above $68,000 but slightly reversed those gains following Wednesday's US January jobs report. The top crypto is hovering around $67,000, down 2% over the past 24 hours as of writing on Wednesday.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

XRP sell-off deepens amid weak retail interest, risk-off sentiment

Ripple (XRP) is edging lower around $1.36 at the time of writing on Wednesday, weighed down by low retail interest and macroeconomic uncertainty, which is accelerating risk-off sentiment.