Sample Category Title

Pivot (invalidation): 0.9850

Our preference Long positions above 0.9850 with targets at 0.9895 & 0.9920 in extension.

Alternative scenario Below 0.9850 look for further downside with 0.9825 & 0.9795 as targets.

Comment The RSI calls for a rebound.

Pivot (invalidation): 107.35

Our preference Long positions above 107.35 with targets at 108.85 & 109.50 in extension.

Alternative scenario Below 107.35 look for further downside with 106.80 & 105.80 as targets.

Comment The RSI calls for a new upleg.

Pivot (invalidation): 1.2580

Our preference Long positions above 1.2580 with targets at 1.2675 & 1.2720 in extension.

Alternative scenario Below 1.2580 look for further downside with 1.2540 & 1.2505 as targets.

Comment The RSI is bullish and calls for further advance.

Pivot (invalidation): 1.1360

Our preference Long positions above 1.1360 with targets at 1.1420 & 1.1470 in extension.

Alternative scenario Below 1.1360 look for further downside with 1.1335 & 1.1310 as targets.

Comment The RSI lacks downward momentum.

XAUUSD (1294.45): Gold prices advanced higher on the day as the price was seen testing the highs of 1294, marking a new seven month high. This comes following the brief retest of support at the 1280 handle. The bullish momentum looks firm for the moment, but there is the scope that gold will retest the 1280 handle in the near term. The lower pending retest of support at 1250 remains open, which exposes the downside risk in gold. Watch for price action to consolidate near the 1280 level in this regard. Failure to establish strong support at this level could risk pushing gold prices lower. To the upside, the next main target comes in at the round number of 1300.00

AUDUSD (0.7022): The AUDUSD currency pair managed to recover from the sharp declines on Wednesday. Price action is seen retesting the breached support at 0.7022 at the moment. Failure to break past this resistance level could keep the Aussie Dollar subdued. However, the declines are likely to stall in the near term, unless price breaks past the lows of 0.6933. In the near term, we expect the AUDUSD to maintain a sideways range within the said levels. A breakout from 0.7022 or 0.6933 will most likely set the direction in the near term.

EURUSD (1.1393): The euro currency was seen retracing the losses on Thursday. Price action managed to recover only from stalling near the minor trend line which was tested as reistance. A continuation of the bearish momentum could potentially push the EURUSD lower again. Price action will need to break past the previously established lows at 1.1334 level to push lower to 1.1273 level of support. To the upside, the common currency will need to break past the current local highs formed to recover the losses completely. Overall, the EURUSD remains range bound within 1.1451 - 1.1273 levels of resistance and support respectively.

The U.S. Dollar eased back following the gains from Wednesday. On the economic front, the UK's construction PMI eased to 52.8 which was below estimates and down from November's reading of 53.4.

Data from the U.S. showed that the ADP/Moody's private payroll numbers surged 271k. The data beat the conservative estimates of 179k increase. However, payrolls for November were revised down to show a reading of 157k.

The ISM manufacturing PMI declined more than expected, falling to a two year low. Data showed that manufacturing activity dropped to 54.1 on the index missing estimates of a decline to 57.7. This was lower in comparison to November's reading of 59.3.

The first busy day of the week will see investors turning attention to the data from the U.S. But ahead of this, the economic calendar today will cover the services activity for the Eurozone.

The Eurozone's services PMI is forecast to remain steady at 51.4. Meanwhile, the UK's services activity is expected to pick up slightly from 50.4 in November to 50.8.

Flash inflation estimates for the Eurozone are also due today. Headline consumer prices are expected to fall from 2.0% to 1.8% in January. Core inflation is however expected to remain unchanged at 1.0%. ECB officials had previously forecast about a short-term weakness in consumer prices. Producer prices data for December in the Eurozone is expected to ease 0.1% on the month.

The NY trading session kicks off with Canada and the U.S. labor market data. The U.S. unemployment rate is expected to remain steady at 3.7%. Wage growth is expected to rise 0.3% on the month while the U.S. economy is forecast to add 181k jobs in December.

Following the payrolls data, Fed Chair Jerome Powell is expected to speak later in the day which could keep investors busy.

The US dollar is attempting to recover short-term bullish momentum against the Japanese yen currency on Friday, after breaking above the important 108.10 resistance level. Technical indicators for the USDJPY pair are extremely oversold, highlighting that further short-term gains still remain possible. A sustained decline below the 108.10 level will likely place the emphasis back on the 107.00 support region.

The USDJPY pair is only bearish while trading below the 108.10 level, key technical support is found at the 107.00 and 106.45 levels.

If USDJPY pair holds above the 108.10 level, a further correction towards the 108.80 and 110.00 levels remains possible.

The LTCUSD pair is consolidating above the $30.00 level in early Friday trade, after two failed attempts to surpass the $33.00 resistance area. Buyers now need a strong move above the $36.00 level in order to trigger the bullish inverted head and shoulders pattern on the lower time frames. Repeated failure to launch higher may prompt a further technical test of the $26.00 support level.

The LTCUSD pair is only bullish while trading above the $33.00 level, key resistance is found at the $36.60 and the $45.00 levels.

If the LTCUSD pair moves below the $30.00, sellers may test the $26.00 and $21.50 support levels.