News & Analysis
Eightcap Forex technical insights – 04/01/18
A very happy New Year to all, let’s hope 2018 gives us more solid trading opportunities as we saw in 2017. The USD and JPY continue to be key factors in the FX markets, we saw strong declines for both to end 2017. 2018 has started mixed for the USD and JPY with a horror start and rebound overnight.
AUDUSD – daily, what a rally we’ve seen since the 21st of the December. One way traffic without a negative session. .7824 is the current support point this level has stopped sellers on two attempts before buyers made a new high for the week today. Current sentiment remains bullish, but traders should be on the look out for signs of a first correction as the current trend hasn’t seen one yet. The last consolidation was seen mid December. If bulls continue their drive we would be looking for a test of .7873 – .7885
EURJPY – daily, after a stronger start to 2018 buyers are currently in a consolidation. We’re seeing a strong session today with buyers in control. While the trend remains we would be looking for a test and potential a break of 135.51 resistance confirming a trend continuation. Traders should keep in mind tomorrow night’s CPI Flash Estimate that could halt or feed bullish momentum.
GOLD – daily, like the Aussie we saw an amazing rally to end 2017. Buyers started 2018 with a $14 dollar single day rally, that took prices back to levels not seen since September 17. This rally has mainly been driven by a weaker USD as traders and investors dropped out of the USD for risk assets. Currently sellers have managed a lower close and have control in today’s session. Today’s session has found support from 1305.98. While this level holds we’re looking for support to come in and a continuation to develop. Buyer momentum has been very strong and until we see further signs it’s hard to look at a bear case right now. If we see a failed impulse high from the current support that might start to show a change in momentum.
Good trading from Eightcap
Sources – Investing.com
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