Daily Forex News

Overview of Gold: $1,300 Break Remains Indefinable Despites the Weak tone in US Dollar
 
XAU traded a bit lower against USD and closed at 1288.78.
 
·        Gold picked up a bid on Monday, tracking the weak spot in the US dollar, but the bull momentum ran out of steam at $1,295.
·        The dollar index (DXY) fell to 2.5-month lows below the 100-day MA.
·        The yellow metal is still struggling to break past $1,300.
·        $1,276 is the level to beat for the bears.
 
According to the Analysis, The XAU/USD_.X pair is expected to find support at 1282.62, and a fall through could take it to the next support level of 1276.47. The pair is expected to find its first resistance at 1294.99, and a rise through could take it to the next resistance level of 1301.21. Previous Day range was 12.37 and Current Day Range is 7.69.
 
The yellow metal failed to cross the psychological barrier of $1,300 on Friday and carved out a bearish-lower high of $1,288 yesterday, despite the drop in the US dollar - gold's biggest retribution.
Notably, the dollar index found acceptance below the 100-day moving average (MA) yesterday and fell to 95.64 - a level last seen on Oct. 22.
The greenback is indeed on the defensive, having closed below the 100-day MA for the first time since Sept. 27 amid dovish Fed expectations.
The yellow metal is still struggling to pick up a strong bid. As of writing, it is reporting moderate losses at $1,286 per Oz. Gold's inability to capitalize on DXY's break below the 100-day MA likely indicates the bulls are facing exhaustion.
 
 

 Technical Overview of Bitcoin by XtreamForex
 
BTC traded a bit lower against USD and closed at 3653.36.
 
Bitcoin breaks key levels again after breaching $4k.
Long term bottom is not in place yet.
 
According to the Analysis, The BTC/USD pair is expected to find support at 3589.71, and a fall through could take it to the next support level of 3526.05. The pair is expected to find its first resistance at 3708.30, and a rise through could take it to the next resistance level of 3763.23. Previous Day range was 118.59 and Current Day Range is 37.66.
 
Bitcoin, the king of Cryptocurrencies, has broken down of some key levels after breaking below $4,000 and is now at the risk of breaching $3,000 too as long term bottom is not yet in place for the largest crypto.
BTC/USD trading flat on day at $3,633 and in less than one percent range for the day - typical low volume and even lower volatility weekend trading that is. Earlier this week, Bitcoin and all the other major coins saw massive sell-off all over again, resulting in BTC breaking $4,000 again and as a result also broke some key levels on the short term (180-minute) as well as long term (daily) chart.
 
 

 Technical Overview of GBP/USD, USD/JPY and USD/CHF Currency Pairs
 
GBP USD

 The GBP traded lower against the USD and closed at 1.2858.
 
The GBP/USD pair is struggling to cross the 9-month-long falling trendline for the third day straight, having charted a big doji candle at that diagonal line yesterday.
 
Bank of England Governor Speech is given by the head of the BOE's Monetary Policy Committee and has the greatest influence over sterling's value among all members of the Committee. The BoE Governor's public engagements suggest clues regarding the change in the exchange rate and future monetary policy of the Bank of England.
 
According to the Analysis, The pair is expected to find support at 1.27176, and a fall through could take it to the next support level of 1.25770. The pair is expected to find its first resistance at 1.29563, and a rise through could take it to the next resistance level of 1.30544.
 
Previous Day range was 238.7 and Current Day Range is 47.1.
 

 USD JPY

 The USD traded lower against the JPY and closed at 108.631.
USD/JPY is on the retreat, having faced multiple rejections near 108.75 in the last 24 hours.
Risk-reset is likely on shaky grounds. China stimulus pledge could be overshadowed by the global growth slowdown.
BOJ Governor Speech is an event having the greatest impact on JPY among all public statements made by the Japanese regulator. The Governor's rhetoric reflects the official position of the Bank of Japan.
 
If some hints at tightening the monetary policy by the Bank of Japan are detected in the Governor speech, it may affect JPY positively.
 
The pair is expected to find support at 108.253, and a fall through could take it to the next support level of 107.875. The pair is expected to find its first resistance at 108.884, and a rise through could take it to the next resistance level of 109.137.
 
USD JPY previous Day range was 6310 and Current Day Range is 3350.
 
 
USD CHF

 The USD traded higher against CHF and closed at 0.9876.
 
With major European currencies remaining under strong selling pressure on Tuesday, the greenback attracted investors' attention and the US Dollar Index recovered all of the losses it recorded last week and broke above 96 to refresh its highest level since January 4 at 96.23.
 
Retail Sales m/m reflect a change in the US retail sails in the reported month compared to the previous one. The indicator is calculated based on statistics received from 5,000 retail stores of different types and sizes, and the data are then extrapolated to the whole country.
 
The indicator is used for estimating inflation. Its growth may have a positive effect on dollar quotes.
 
According to the analysis, pair is expected to find support at 0.98208, and a fall through could take it to the next support level of 0.97656. The pair is expected to find its first resistance at 0.99124, and a rise through could take it to the next resistance level of 0.99488.
 
USD/CHF previous day range was 91.6 and current day range is 8.1.
 
 
 
 

 Technical Overview of USD/CAD, USD/CHF and NZD/USD Currency Pairs
 
USD CAD

 The USD traded lower against the CAD and closed at 1.3148.
 
Fed says that it will stay patient on further rate hikes.
US Dollar Index falls sharply on the dovish shift in the language.
WTI settles above $54 on Wednesday.
 
FOMC Press Conference is a quarterly event that attracts the attention of financial analysts and economists from around the world. During the press conference, the US Federal Open Market Committee members respond to journalists' questions about the US monetary policy, inflation prospects and measures taken to achieve its target level.
 
The index allows making conclusions about the terms of interest rate changes or changes in the monetary policy, depending on the speaker's rhetoric. Indirect hints at the coming growth of interest rates are seen as positive for the dollar.
 
According to the Analysis, The pair is expected to find support at 1.30838, and a fall through could take it to the next support level of 1.30201. The pair is expected to find its first resistance at 1.32461, and a rise through could take it to the next resistance level of 1.33447.
 
Previous Day range was 162.3 and Current Day Range is 26.5.
 

 USD CHF

 The USD traded lower against the CHF and closed at 0.9941.
 
US Dollar Index rises toward 96 on strong ADP data.
Wall Street starts the day on a strong footing.
FOMC is expected to keep its policy rate unchanged at 2.5%.
 
FED Interest Rate Decision is made on a predetermined date during the vote among the members of the Federal Open Market Committee (FOMC) concerning the Federal Reserve short-term interest rates to be charged from credits and commercial bank loans.
 
The increasing rate can have a positive effect on USD, while a decrease can affect USD negatively. If the rate remains unchanged, the analysts evaluate the number of "for" and "against" votes and discuss statements of voters after the minutes of meeting are published in order to forecast the results of the next meeting.
 
The pair is expected to find support at 0.99169, and a fall through could take it to the next support level of 0.98928. The pair is expected to find its first resistance at 0.99799, and a rise through could take it to the next resistance level of 1.00188.
 
USD CHF previous Day range was 63 and Current Day Range is 19.4.
 
 
NZD USD

 The NZD traded higher against USD and closed at 0.6888.
 
The NZD/USD pair jumped 24 pips to a session high of 0.6824 after the ratings agency S&P raised New Zealand outlook to positive from stable and left rating unchanged at AA.
 
According to the analysis, pair is expected to find support at 0.68352, and a fall through could take it to the next support level of 0.67826. The pair is expected to find its first resistance at 0.69257, and a rise through could take it to the next resistance level of 0.69636.
 
NZD USD previous day range was 90.5 and current day range is 37.1.

Trump's State of the Union Address, Disney Earnings, ISM Services Data

President Donald Trump will make his annual State of the Union address to Congress at 9:00 PM ET. Trump signaled last week that the speech will include extensive remarks about his standoff with Democrats over building a wall along the U.S.-Mexico border, the subject of an intense partisan battle that prompted a 35-day partial government shutdown.

Meanwhile, dozens of companies are expected to release earnings today. The most focused fall on Disney, which reports after the close. Media giant expected to report adjusted earnings per share of $ 1.54 on revenue of $ 15.07 billion, according to estimates.

Elsewhere, the market players will keep an eye on the Institute for Supply Management (ISM) survey on service sector activity at 10AM ET to gauge the strength of the economy.