Get the scoop on what’s happening in currency markets. Plus, find out how Bitcoin is faring, where natural gas prices are heading, and get a preview of Wall Street’s outlook!
EUR/USD
The Euro is going through a rough patch against both the US Dollar and Japanese Yen. After hitting its highest level in 10 months, EUR/USD has been tumbling non-stop, whereas EUR/JPY seems to be holding steady near two month highs – with potential for further gains!
With the Greenback gaining strength left and right, one burning question remains: how much lower can we expect the single currency’s value to go?
EUR/USD is on an upward trajectory, but with some hiccups along the way. Prices started off strong this month before retracing a bit due to broad-based US Dollar support.
Moving averages suggest that long term bullish momentum could remain intact while short and medium term headwinds may be stronger at present – look out for potential support zones near 1.0443,1.0480 & 1.0330 should prices continue dropping!
Right now, the market is poised at a crossroads! The 21-day Simple Moving Average might form an ominous “Death Cross” with its counterpart 55-day SMA.
Meanwhile, there’s major support from 1.0290 to 1.0094 waiting in the wings – but that may not be enough when faced with resistance around 1.0766 and beyond!
Will we see bullish momentum triumph or will bears take control? It looks like it could go either way right now…
EUR/JPY
The glamorous world of forex trading just got a bit more interesting! Following Eur/Jpy breaking through what’s known as the Ichimoku Cloud, there have been some positive signs for future bullish momentum.
Could we be seeing a Pennant Formation evolve?
If so, it could mean that resistance would take place at prior peaks with 144.16 and upwards or support from previous lows including 137.37 (a double bottom). Keep your eye on this one – exciting times are ahead in foreign exchange land!
BITCOIN, BTC/USD
After a few days of stepping back from its recent highs, Bitcoin’s two-month climb to success appears to be taking a breather.
We’re keeping an eye on the key levels that could determine whether this is just part of a trend consolidation or something more serious – so make sure you stay tuned!
Recent trading suggests that this could just be temporary consolidation rather than an outright reversal of its two-month rise in price – although BTC/USD still needs to clear 25200 for investors to feel more confident about medium-term prospects.
Time will tell whether Bitcoin can make it over this key hurdle!
The market has been on a roll since the beginning of 2021, but that streak may be nearing an end.
Last week’s dip below 23800 suggests upward momentum is slowing down and could signify we’re in for a period of consolidation as February comes to a close.
Natural Gas
Natural gas prices had a great showing last week, rallying an impressive 12 percent – the best performance in 5 days since October! This promising news is especially noteworthy amid persisting losses from August 2022.
Could this strong show be enough to spark a broader reversal of the downside bias? Will it reverse what looked like a bearish Head & Shoulders chart formation?
Let’s keep a lookout for any new discoveries about these exciting questions!
Natural gas prices recently made a turn higher after being in decline. This was an indication of waning downside momentum, and the market even managed to close above its 20-day Simple Moving Average – something it hasn’t done since mid-December!
While more confirmation is needed, if this trend continues we may see natural gas pushing further up toward the 50- day SMA – although that could still act as resistance for now.
Natural gas prices have been on an upswing, surpassing the 100-day Simple Moving Average and opening a window for continued growth.
Although still bearish in nature, we could see more neutrality coming into play soon as this positive trend continues – signaling that something may be stirring with natural gas!
Wall Street Outlook
This week had traders on the edge of their seats as global markets experienced a major downturn. Wall Street’s Dow Jones, S&P 500, and Nasdaq 100 tumbled by over 2%, while London’s FTSE100 and Germany’s DAX 40 lost nearly 1.5%.
Japan’s Nikkei 225 was comparatively resilient with only under 1% loss but Hong Kong wasn’t so lucky – its Hang Seng Index went down 3.4%.
Surprisingly enough, the US 2-year Treasury yield rose to 4.82%, which is alarming when compared to 2007 levels coincided with rising PCE Core Deflator signalling possible inflationary pressure due in part to ultra-low unemployment rates across the country right now!
Interest Rates
It looks like interest rates are going to heat up this month, and the US Dollar is already feeling it. Traders have added at least two rate hikes into their outlooks, sending a ripple of volatility across markets as everyone braces for potential change.
The Dollar’s strength was especially evident when facing off against global competitors in currencies such as AUD, CNY, and EUR – not to mention gold prices taking quite the hit after sinking over 1% last week!
It seems we could be looking at an even more alarming 6-7 percent decrease by June if market trends continue – buckle your seatbelts folks; things might start getting wild any day now.
Key Events Happening This Week
The upcoming week will be an exciting one for traders. The US is set to release manufacturing and non-manufacturing PMI data, while Canada and Australia are due out with fourth-quarter GDP figures.
China’s official Manufacturing PMI numbers will also arrive in this same period. All eyes are on these developments as we navigate a new year of trading!
Last Week’s Currency Performance
Exchange rate fluctuations last week left some currencies with some losses, while the British pound held steady against the US Dollar. Will this trend continue to shake markets? We’ll all have to wait and see what happens!
Technical Forecasts
The Euro is looking brighter after news of a resurgence in the Eurozone, while GBP appears more uncertain despite optimistic talks and hopeful data.
On the other side of the world, however, it’s not such great news for Aussie Dollars as central banks try to contain soaring prices. What can we expect from these currencies over the coming weeks?
After a period of uncertainty, the U.S. dollar has recently gained some strength – it’s now at its highest level since January!
This buying momentum was spurred by higher Treasury bond yields due to inflationary expectations from positive economic data reports.
Gold prices have been hit hard as investors flock to take advantage of this exciting rally for USD – XAU/USD is currently looking towards the 1800 support level before making any further moves in the market!
Last week marked an impressive turnaround for the US Dollar Index, as positive economic data further bolstered its peak rate expectations.
But can this bullish momentum continue?
In other news, stocks were dealt some blows by major bearish technical developments last week — will they rebound any time soon, or are more losses on their way?
Finally, USD/CAD has just scored fresh highs in 2023 with a bullish breakout…while oil appears to be taking a dive thanks to its developing negative chart formation.
Keep your eyes peeled and tune into market movements during this particularly volatile period!
Disclaimer:
All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.
