Top Trade Setups in Forex – Buckle Up for US Fundamentals!

The U.S. stocks closed mixed amid lingering worries about the economic impact caused by the global coronavirus outbreak. The Dow Jones Industrial Average fell 123 points (-0.5%) to 26957, and the S&P 500 dropped 11 points (-0.4%) to 3116. Both indexes posted a five-session decline losing a total of 8%.

Meanwhile, the Nasdaq 100 rebounded 38 points (+0.4%) to 8873. Shares in Technology Hardware & Equipment (+0.86%), Pharmaceuticals, Biotechnology & Life Sciences (+0.46%) and Semiconductors & Semiconductor Equipment (+0.41%) sectors posted gains, while Energy (-2.97%), Consumer Services (-2.1%) and Transportation (-1.71%) stocks lagged behind. Walt Disney fell 3.8%.

 

XAU/USD - Triple Top Pattern In-Play

On Thursday, the precious metal gold prices rose as the speedy extension of the coronavirus outside China stoked demand for safe-haven assets and triggered expectations of dovish monetary policy by major global central banks. 

Gold expanded 0.5% to $1,648.14 per ounce, as of 0316 GMT. Prices fell as much as 1% in the prior session. The U.S. gold futures moved up 0.4% at $1,650.10.

The number of new coronavirus diseases within China was, for the first time, passed by fresh evidence outside China on Wednesday, with Italy and Iran appearing as epicenters of the swiftly spreading disease.

The U.S. health specialists, handling 59 incidents so far, and they also threatened the potential for a pandemic, although President Donald Trump said the country was in "great shape" to manage an emerging health crisis.

 

XAU/USD - Daily Technical Levels

Support	Pivot Point	Resistance
1625.61	1640.33	1655.65
1610.29		1670.37
1580.25		1700.41

 

XAU/USD - Daily Trade Sentiment

The precious metal gold has recovered slightly to trade at 1,652 after completing 50% Fibonacci retracement at 1,626 on the daily graph. Presently, the precious metal gold is trading in line with our analysis, posted a day ago as gold continues to hold over 1,626 mark and below the triple top resistance level of 1,653. 

Today, gold prices can extend buying until 1,662 and higher only if it manages to break above 1,653/55 resistance area. Overall, bullish entries can be seen over 1,640 and 1,653. 

 

USD/CAD - Double Top Breakout, Is It Going After 1.3385?

The Canadian dollar weakened against the greenback, as oil prices continued to slump. USD/CAD advanced 0.5% to 1.3343. The U.S. Commerce Department will release the second estimated 4Q annualized GDP (+2.1% on quarter expected and previously estimated), Januar durable goods orders (-1.5% on month expected). 

The Canadian dollar dropped ground versus stronger U.S. dollar on Wednesday as the growing of the coronavirus pressed on the price of oil, one of Canada's major commodities, with the Loonie surrounding its lowest mark in about two weeks. The Labor Department will post initial jobless claims in the week ended February 22 (212,000 expected). The National Association of Realtors will publish pending home sales in January (+3.0% on month expected).

The U.S. Energy Information Administration reported that crude-oil stockpiles increased 500,000 barrels last week, much less than the addition of 2.8 million barrels expected. However, the report failed to lift oil prices, as U.S. Nymex crude oil futures slid a further 2.3% to $48.73 a barrel, and Brent was down 2.8% to $53.43 a barrel. In the wake of weaker oil prices, the Lonnie is also suffering, which is causing a slight bullish bias for the USD/CAD.

 

USD/CAD - Daily Technical Levels

Support	Pivot Point	Resistance
1.329	1.3313	1.3355
1.3249		1.3377
1.3184		1.3442

 

USD/CAD - Daily Trade Sentiment

The USD/CAD was consolidating in a narrow range of 1.3270 - 1.3300, which has now been violated, and the commodity currency pair is now heading towards the next target level of 1.3385 level. 

On the 4 hour timeframe, the USD/CAD has retraced to retest the resistance become support level of 1.3330, and closing of candles above this level seems to extend bullish rally until 1.3385 level soon. While the RSI and Stochastics are still staying in the bullish zone, let's look for buying positions over 1.3330 today.

 

AUD/USD – Bearish Channel Intact 

The AUD/USD sank 0.9% to a fresh ten-year low of 0.6545. The dollar slipped on Thursday as Treasury yields extended to erect new lows, and traders bet the Federal Reserve would decrease interest rates to compensate the influence of the growing coronavirus, boosting the dollar and pressuring on the Aussie. 

For now, the focus will stay in the fourth-quarter U.S. GDP (second reading, +2.1% on year expected), January durable goods orders (preliminary reading, -1.5% on month expected), and initial unemployment claims for the week finished February 22 (212,000 expected) will be released. 

Most of the bearish bias in Aussie has triggered over China coronavirus, which is widely expected to hit China's economic growth. Eventually, its impacts are also going to hit Australia. The virus has prompted an immense flight of assets out of Asia as traders try to isolate themselves from both the illness itself and the damage which has been caused due to more than a month of paralysis in the world's second-biggest economy. The bearish bias remains dominant in the market.

 

AUD/USD - Technical Levels 

Support	Pivot Point	Resistance
0.6526	0.6561	0.658
0.6508		0.6614
0.6454		0.6668

 

AUD/USD - Daily Trade Sentiment

The AUD/USD violated the double bottom support area of 0.6585 and pushed the Aussie under the next target level of 0.6540. For now, the AUD/USD pair is exhibiting bullish correction, which is likely to halt below 0.6588 level. Below this level, the Aussie has chances of capturing more selling until the next support level of 0.6535 area. 

The 50 periods EMA is staying at 0.6625, which is a bit far from the current market price of 0.6570. Let's look for selling entries below 0.6580 level with a stop around 0.6625 and target around 0.6530. 

 

 

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