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British Pound Extends Its Losses In The Asian Session
For the 24 hours to 23:00 GMT, the GBP declined 0.29% against the USD and closed at 1.2863.
In major news, UK Prime Minister Theresa May’s Brexit divorce deal was rejected by the parliament, raising worries over a political turmoil leading to chaotic exit from the European Union.
In the Asian session, at GMT0400, the pair is trading at 1.2855, with the GBP trading 0.06% lower against the USD from yesterday’s close.
The pair is expected to find support at 1.2711, and a fall through could take it to the next support level of 1.2568. The pair is expected to find its first resistance at 1.2957, and a rise through could take it to the next resistance level of 1.3060.
Trading trend in the Sterling today is expected to be determined by UK’s house price index for November along with the consumer price index, retail price index and producer price index, all for December, slated to release in a few hours.
The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.
USD/CHF Daily Outlook
Daily Pivots: (S1) 0.9820; (P) 0.9857; (R1) 0.9914; More....
USD/CHF's rebound from 0.9716 extends higher today but it's staying inside near term falling channel. Intraday bias remains neutral first. Fall from 1.0128 could extend lower. Break of 0.9800 minor support will turn bias back to the downside. Further break of 0.9716 will target 0.9541 cluster support (61.8% retracement of 0.9186 to 1.0128 at 0.9546). Nevertheless, firm break of 0.9963 will suggest that the pull back from 1.0128 is completed. Near term outlook will be turned bullish for 1.0128.
In the bigger picture, current development suggests that rise from 0.9186 has possibly completed with three waves up to 1.0128 already. Decline from 1.0128 could either be correcting this move, or reversing the trend. As long as 0.9541 support holds, we'd slightly favor the former scenario, and expect another rise through 1.0128 at a later stage. However, sustained break of 0.9541 will confirm trend reversal and bring deeper fall back to 0.9186 low.
Japan’s Machine Tool Orders Fell For The Third Consecutive Month In December
For the 24 hours to 23:00 GMT, the USD rose 0.16% against the JPY and closed at 108.67.
On data front, Japan's flash machine tool orders dropped for the third consecutive month by 18.3% on an annual basis in December, compared to a decline of 17.0% in the previous month.
In the Asian session, at GMT0400, the pair is trading at 108.53, with the USD trading 0.13% lower against the JPY from yesterday's close.
Overnight data revealed that the nation's machinery orders advanced 0.8% on an annual basis in November, higher than market consensus for a rise of 0.2%. In the prior month, machinery orders had recorded a climb of 4.5%.
The pair is expected to find support at 108.32, and a fall through could take it to the next support level of 108.10. The pair is expected to find its first resistance at 108.76, and a rise through could take it to the next resistance level of 108.98.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
Swiss Franc Trading Flat In The Morning Session
For the 24 hours to 23:00 GMT, the USD rose 0.74% against the CHF and closed at 0.9879.
In the Asian session, at GMT0400, the pair is trading at 0.9879, with the USD trading flat against the CHF from yesterday’s close.
The pair is expected to find support at 0.9825, and a fall through could take it to the next support level of 0.9770. The pair is expected to find its first resistance at 0.9914, and a rise through could take it to the next resistance level of 0.9948.
With no macroeconomic releases in Switzerland today, investors would look forward to global macroeconomic releases for further directions.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
EUR/USD Daily Outlook
Daily Pivots: (S1) 1.1366; (P) 1.1428; (R1) 1.1475; More.....
Intraday bias in EUR/USD remains mildly on the downside for 1.1307 support. Current development argues that corrective rise from 1.1215 has completed earlier than expected. Break of 1.1307 will likely resume larger down trend from 1.2555 through 1.1215 low. On the upside, above 1.1489 minor resistance will turn bias back to the upside for 1.1569 instead.
In the bigger picture, as long as 1.1814 resistance holds, down trend down trend from 1.2555 medium term top is still in progress and should target 61.8% retracement of 1.0339 (2017 low) to 1.2555 at 1.1186 next. Sustained break there will pave the way to retest 1.0339. However, break of 1.1814 will confirm completion of such down trend and turn medium term outlook bullish.
Canada’s Existing Home Sales Declined More-Than-Estimated In December
For the 24 hours to 23:00 GMT, the USD slightly declined against the CAD and closed at 1.3267.
In economic news, Canada's existing home sales eased 2.5% on a monthly basis in December, compared to a drop of 2.3% in the prior month. Market participants had anticipated existing home sales to fall 1.0%.
In the Asian session, at GMT0400, the pair is trading at 1.3266, with the USD trading marginally lower against the CAD from yesterday's close.
The pair is expected to find support at 1.3231, and a fall through could take it to the next support level of 1.3195. The pair is expected to find its first resistance at 1.3298, and a rise through could take it to the next resistance level of 1.3329.
Amid lack of economic releases in Canada today, traders would focus on global macroeconomic events for further direction.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
Aussie Trading A Tad Lower In The Morning Session
For the 24 hours to 23:00 GMT, the AUD declined 0.14% against the USD and closed at 0.7204.
LME Copper prices rose 0.4% or $21.0/MT to $5882.0/MT. Aluminium prices rose 2.0% or $35.0/MT to $1810.5/MT.
In the Asian session, at GMT0400, the pair is trading at 0.7201, with the AUD trading slightly lower against the USD from yesterday’s close.
Overnight data showed that Australia’s Westpac consumer confidence index slid to a level of 99.6 in January, following a reading of 104.4 in the previous month.
The pair is expected to find support at 0.7179, and a fall through could take it to the next support level of 0.7156. The pair is expected to find its first resistance at 0.7225, and a rise through could take it to the next resistance level of 0.7248.
Looking ahead, investors would await Australia’s consumer inflation expectations for January and home loans data for November, scheduled to release overnight.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
Gold: Yellow Metal Extends Its Losses In The Asian Session
For the 24 hours to 23:00 GMT, Gold declined 0.25% against the USD and closed at USD1289.40 per ounce, amid strength in the US dollar.
In the Asian session, at GMT0400, the pair is trading at 1288.80, with gold trading 0.05% lower against the USD from yesterday’s close.
The pair is expected to find support at 1285.27, and a fall through could take it to the next support level of 1281.73. The pair is expected to find its first resistance at 1293.57, and a rise through could take it to the next resistance level of 1298.33.
The yellow metal is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
Silver: White Metal Trading Lower In The Morning Session
For the 24 hours to 23:00 GMT, Silver declined 0.54% against the USD and closed at USD15.63 per ounce, tracking losses in gold prices.
In the Asian session, at GMT0400, the pair is trading at 15.61, with silver trading 0.13% lower against the USD from yesterday’s close.
The pair is expected to find support at 15.54, and a fall through could take it to the next support level of 15.48. The pair is expected to find its first resistance at 15.70, and a rise through could take it to the next resistance level of 15.80.
The white metal is trading above its 20 Hr and 50 Hr moving averages.
Crude Oil: Oil Trading Slightly Higher, Ahead Of EIA’s Weekly Crude Oil Inventories Data
For the 24 hours to 23:00 GMT, Crude Oil rose 1.68% against the USD and closed at USD51.94 per barrel, amid hopes that China would take necessary steps to boost economy. Additionally, the American Petroleum Institute (API) reported that US crude oil inventories dropped by 0.6 million barrels to 437.0 million barrels in the week ended 11 January 2019.
In the Asian session, at GMT0400, the pair is trading at 51.96, with oil trading marginally higher against the USD from yesterday's close.
The pair is expected to find support at 50.99, and a fall through could take it to the next support level of 50.01. The pair is expected to find its first resistance at 52.62, and a rise through could take it to the next resistance level of 53.27.
Crude oil is trading above its 20 Hr and 50 Hr moving averages.
