Yesterday’s optimism was quickly curbed today as China revised its approach on how they are counting the infected. New cases surged by almost 15,000 and fatalities increased by 254 while Japan confirmed its first case of infection that resulted in a death. As a result, two most senior Communist Party officials in Hubei were replaced.
French unemployment was released this morning for the 4th quarter and although it came in above forecast it remains at a staggering 8.1%. German CPI MoM for January was released at -0.6%.
The United States released an array of upbeat data. Continuing jobless claims have decreased and came in at better than expected 1,698. Core CPI YoY for January came in above forecast at 2.3%, MoM 0.2%. Initial jobless claims were also reported at 205K, below 210K forecast. The USD is also experiencing gains as a safe haven asset.
EUR/USD on a Daily TF has dropped to our next support target and currently trading around 1.08560, the lowest level since 2017. MACD bearish histogram has increased, Parabolic SAR is pointing down, RSI is in oversold zone at 25.42.
Resistance: R1 1.09, R2 1.09425, R3 1.09700.
Support: S1 1.07775, S2 1.07, S3 1.06.
GBP/USD on a Daily TF is having a bullish day after Sajid Javid was replaced by Rishi Sunak as the United Kingdom Chancellor of the Exchequer, which is the governments chief financial minister. The annual United Kingdom budget will be set next month on March 11th and markets perceive that with Rishi Sunak, who used to work for Goldman Sachs, the U.K. will be able to “unleash Britain’s potential” as PM Boris Johnson likes to say.
The pair rose by +0.65% and currently trading around 1.30444. MACD bearish histogram has decreased, MACD line and Signal line are narrowing, Parabolic SAR is close to the price and price is breaking above 13 and 48 EMA. 13EMA is close to intersecting 48EMA up.
Resistance: R1 50% Fibo 1.31693, R2 1.32500, R3 1.33327.
Support: S1 1.29500, S2 38.2% Fibo 1.28835, S3 200EMA 1.28415.
USD/JPY on a Daily TF dropped as low as 109.619, touched the 13 EMA as support and currently trading around 109.732. Indicators remain bullish. Tomorrow at 10am GMT we’ll hear from Bank of Japan Deputy Governor Amamiya, pay attention to clues on the coronavirus impact to Japans economy.
Resistance: R1 110.00, R2 110.214, R3 110.680.
Support: S1 109.515, S2 109.270, S3 23.6% Fibo 108.911.