Yuan close to yearly lows

Tomasz Wisniewski Axiory Global Ltd.

Currency Wars are no longer a hot topic right now. Trump's administration is probably happy with the recent weakness of the Dollar so they are not picking this topic up in the interviews and speeches. In this environment we see that since the beginning of the year, Yuan is getting stronger against the USD and we are very close to make new yearly lows. What is the future of this trend?

From the technical point of view we have signals promoting both scenarios: bearish and bullish. When I weight them against each other I see that bulls have a bit bigger chances in the long term. What are the bearish signs here? Well first of all, we broke the long-term up trendline (black), which itself can be considered by some traders as a sell signal. What is more, we are in the channel down formation (red lines).

On the other hand (bullish), this channel down can be considered as a flag and in the same time as a trend continuation pattern. When I see at the length of the trend and the length of the recent correction I think that flag will be a more appropriate name here, especially that we are still above the 38,2% Fibo so talking about the channel down formation would be too early here. Furthermore, we are still above the 6,72 (upper green) support and I think that this will be an important one and should keep the bullish dream alive.

The short-term scenario is a test of this (6,72) level, so we can go lower in the next few days. What will happen next? Depends from the price action there but in my opinion there is still a bullish potential here in a long-term, at least as long as we stay above the 38,2% Fibonacci (second green area).

Author

Tomasz Wisniewski

Axiory Global Ltd.

Tomasz was born in Warsaw, Poland on 25th October, 1985.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.