USD/JPY struggles to remain above 124.00

Technical Analysis

EUR/USD fails to sustain growth above 1.10

“This strengthened the hand of dovish members of the FOMC who remain circumspect about when inflation will return to the Fed's target, particularly in light of the renewed weakness in commodity and oil prices.”

- ANZ (based on Reuters)

• Pair’s Outlook

  EUR/USD ended the previous trading week slightly below the 1.10 mark, as it managed to recover only losses of Thursday's session. The mentioned round level seems to act as a strong barrier for bulls at the moment. It should be added that all attempts of the Euro to surge as high as 1.11 were negated by the market. The focus among long market participants is now turning to the monthly pivot point at 1.1002, which is reinforced by the 20-day SMA. However, bears are still there and they are aiming at the recent low (1.0893).

• Traders’ Sentiment

  Sentiment towards EUR/USD among SWFX market participants improved over the weekend, as the share of bullish open positions surpassed the 50% threshold to reach 53% on Monday.

GBP/USD trades flat prior to fundamental releases

“This [US ECI data] strengthened the hand of dovish members of the FOMC who remain circumspect about when inflation will return to the Fed’s target, particularly in light of the renewed weakness in commodity and oil prices.”

- ANZ (based on WBP Online)

• Pair’s Outlook

  The Cable experienced substantial volatility last Friday, which was limited by the support trend-line and the upper Bollinger band. The Sterling still managed to outperform the Greenback, as trade closed at 1.5615; thus, remaining rather far from the immediate resistance. Today’s technical studies and the fundamental data suggest the GBP/USD pair is to remain unchanged. From below the Pound is supported by the weekly PP at 1.56, with a much stronger cluster located around 1.5570, while a surge towards 1.5670 is not out of the question, depending on the fundamental results.

• Traders’ Sentiment

  Bulls and bears reached a perfect equilibrium today, while the number of buy orders increased from 56 to 61%.

USD/JPY struggles to remain above 124.00

“The market is contained higher in a trend channel and this offers resistance [for the USD/JPY] this week at 127.88.”

- Commerzbank (based on FXStreet)

• Pair’s Outlook

  Although the USD/JPY reached the expected daily low on Friday, the pair still stabilised at 123.85. However, some of Friday’s losses were erased over the weekend, which resulted in the Buck resuming trade above the 124.00 level. Today the US currency is expected to inch higher, as the weekly PP and 20-day SMA are providing support around 123.85, while immediate resistance is located too far up and will doubtfully be reached. Furthermore, technical indicators are now showing mixed signals, suggesting the pair is to remain flat.

• Traders’ Sentiment

  Slightly less traders now have a positive outlook than before, namely 70% of them (previously 74%). Meanwhile, the share of commands to acquire the Greenback added two percentage points up to 71%.

XAU/USD flat around 1,095

“The story's simple yet powerful enough to inject a bearish trend for gold.”

- OCBC Bank (based on CNBC)

• Pair’s Outlook

  Gold finished the second consecutive trading week without any noticeable price changes. The metal continues hovering just beneath the 1,100 round level, even though there is still room for further losses. The closest supply is currently represented by the long-term downtrend line, which coincides with the weekly R1 at 1,105 and is followed by a bunch of resistances around 1,113 (monthly PP, 20-day SMA, weekly R2). On the other hand, the only important support is the recent low at 1,080, which is going to be the main target for bears in the short-term.

• Traders’ Sentiment

  Positive sentiment with respect to the precious metal is hovering around the 70% mark. The portion of long open positions was down one percentage point over the weekend, by decreasing from 73% to 72%.