Daily Forecast - 12 January 2016
Eurostoxx March contract
EuroStoxx first resistance at 3031/35 is only minor but above here targets strong resistance at 3065/69. Not a surprise that this is the main challenge for bulls today but be ready to buy a break above to target 3090 then strong resistance at 3115/20 for an excellent selling opportunity.
first support at 3035/31 but below here look for 3017/15 then 2995 before a retest of test's low at the 2985/83 level. Further losses today target important September lows & important 200 week moving average at 2970/67 plus August mini crash & 2015 lows at 2951. This 20 point range is the most important area of the week. Obviously a break & close below here would therefore be a further disaster for bulls & a big sell signal. We could test 1 year lows at 2918 pretty quickly. If we continue lower look for 2896 then 2880 & 2863.
Ftse March contract
FTSE first resistance at 5865/70 but above here look for a retest of the next target & resistance at 5890/95. Shorts need stops above 5915. Be ready to buy a break above here to target a selling opportunity at 5945/50. Shorts need stops above 5970. A break higher targets 5990/95 then 3 day highs at 6014.
Failure to beat 5890/95 targets first support at 5870/65. If we continue lower however look for minor support at 5838/35. Further losses retest yesterday's low at 5800/5789. A break lower today however targets August & 2015 lows at 5761. Obviously this is hugely important for this week. A break & daily close below here would be another sell signal to target 5725/20 then 5699/95.
Dax March contract
Dax first resistance at 9945/50 but above here re-targets yesterday's high at 9980 before minor resistance at 10020/025. If we continue higher look for strong resistance at 10075/085 & the main challenge for bulls today. Shorts need stops above 10130. Just be aware that a break higher targets 10170/180 then 10270/280.
Failure to beat resistance at 9945/50 targets 9835/25. If we continue lower look for 9810 then 9775 before a retest of yesterday's low at 9657. A break lower keeps the pressure on for the 9650/45 target then 9585/80 & 9540. If we continue lower look for 9485/80.
The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.