Slobodan Drvenica
Windsor Brokers
The pair remains in red for the fifth straight day and attempting to close below key Fibo support at 113.07 (38.2% retracement of 109.11/115.51upleg) after three consecutive failures.
The sentiment remains negative, mainly on strong Omicron uncertainty, although several other factors work in favor of the US dollar.
Hawkish comments from Fed Chair Powell on Tuesday boost expectations for rate hike, while solid US private sector jobs data add to positive signals, as markets await Friday’s release of non-farm payrolls data for November and expect that the US central bank would speed tapering in their Dec 15 policy meeting.
Daily techs remain mixed as bearish momentum continues to rise and faster DMA’s (10/20/30) turning into bearish configuration, while stochastic is about to reverse from oversold zone, lacking clearer direction signal.
Fresh bears off 2021 high, face strong headwinds from 113.07 Fibo level (reinforced by rising 55DMA) but so far holding grip, awaiting more signals from US jobs data on Thu/Fri (weekly jobless claims / NFP).
Eventual close below 113.07 pivot would signal bearish continuation and open way towards 112.31/00 (50% retracement / round-figure), violation of which would expose next key level at 111.56 (Fibo 61.8% / 100DMA).
Conversely, repeated failure to register close below 113.07 would signal prolonged consolidation, but bears will remain in play as long as the price action stays below 114.00 zone barriers (converged falling 20/30 DMA’s).
Res: 113.07; 113.62; 114.00; 114.80
Sup: 112.53; 112.31; 112.07; 111.56
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.