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Thursday, 12 January 2017 20:09 Written by

Trump's presser fails to impress dollar bulls

Daily Forex Market Preview, 12/01/2017

 

The U.S. dollar was volatile in yesterday's trading session as the dollar index edged higher to a 5-day intraday high at 102.96 before giving up the gains by the end of the day. Investors were disappointed as the first official press conference by the President-elect; Donald Trump failed to give much insight into the fiscal stimulus plans which has seen one of the most sharpest speculative rallies in recent times. The greenback settled near the support of 101.72 - 101.40, but it is possible to expect further declines on a breakdown below this support level. On the economic front, Fed Chair, Janet Yellen will be speaking later this evening.

 

EURUSD intra-daily analysis

1 EURUSD H4 1201

EURUSD (1.0609): EURUSD managed to slip below the support level at 1.0500 before pushing higher with the price now seen trading at 1.0600 handle. This could signal further upside in the near term with the support at 1.0551 likely to hold up the prices for the moment as the single currency could be seen targeting 1.0700. On the 4-hour chart, price action is showing signs of a potential ascending triangle pattern within the rising median line which puts the minimum upside target to 1.0800 following the break of the strong resistance at 1.0700.

 

USDJPY intra-day analysis

2 USDJPY H4 1201

USDJPY (114.50): USDJPY is seen approaching the 114.00 support level after prices topped out near 118.00. Expect a short-term bounce off 114.00 on the initial test of this level which previously acted as resistance. However, the upside could be limited in the near term with USDJPY likely to stay range bound within 116.00 and 118.00 levels. The daily Stochastics looks to be edging closer to the oversold levels which could see a short term bounce ahead of further declines. On the 4-hour chart, USDJPY could be seen retesting the 115.25 price level to establish resistance following which the dollar is looking weaker as it could potentially test 109.75 - 109.50 support to the downside.

 

XAUUSD intra-day analysis

3 XAUUSD H4 1201

XAUUSD (1198.77): Gold prices are trading close the 1200.00 handle which could see this strong correction finally reach its intended target. Further upside can be seen coming only on a convincing close above 1200.00, but there is scope for a pullback following the retest to the round number resistance level. The daily Stochastics is now confirming the hidden bearish divergence which could signal a correction lower. On the 4-hour chart, gold prices posted a pullback to 1181.50 and posted a strong reversal off this level. For the moment, watch for a reversal near 1200.00, as gold prices could see some downside momentum potentially push prices lower back to 1160 - 1161.00.

 

Source:www.orbex.com

Read 152 times Last modified on Thursday, 12 January 2017 20:09

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