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Markets Rebound on Mideast Tension Remission EUR/USD, USD/JPY, GBP/USD

Jan 9 2020, 11:29 PM (+06) |

EUR/USD on a Daily TF is trading back along the lines of 1.11. The pair has had a volatile beginning of the new 2020 year. After reaching 1.12393 on December 31st, the pair didn’t hold above the 61.8% Fibo for long. There’s been several upbeat releases from both sides. The Eurozone had a great day on Monday the 6th of January with better than expected German Retail Sales at 2.1% ahead of the 1% forecast, Eurozone Markit Composite PMI also came above forecast at 50.9. On Tuesday the 7th,  U.S. ISM Non-Manufacturing PMI came in above forecast at 55.0, followed by Wednesdays much better than expected ADP Nonfarm Employment, which came in at 202K ahead of 160K forecast. Today, the USD continues to strengthen with a good report on Initial Jobless Claims, released at 214K below 220K forecast. Tomorrow, pay attention to the official U.S. Nonfarm Payrolls report and Unemployment rate at 1:30pm GMT. 

Technically: We have a bearish MACD intersection and bearish MACD histogram is increasing. Parabolic SAR has reversed and pointing down. The pair is using the 48 EMA as support. 

Resistance: R1 50% Fibo 1.11456, R2 61.8% Fibo 1.12086.

Support: S1 38.2% Fibo 1.10827, S2 1.10663, S3 23.6% Fibo 1.10049. 


USD/JPY on a Daily TF dropped to 107.651 as tensions between the United States and Iran escalated and then went into remission. On Wednesday, Iran retaliated against the U.S. by firing air missiles at two Iraqi bases housing U.S. troops. There were no casualties and the following de-escalating speech by Donald Trump helped the panic. The pair has since recovered back up to November-December highs, currently trading slightly above the 61.8% Fibo around 109.547. 

Technically: MACD is at a bullish intersection, Parabolic Sar has reversed and pointing up. The pair broke above the 48EMA which is pointing up as well. 

Resistance: R1 109.900, R2 110.244, R3 111.069.

Support: S1 50% Fibo 108.423, S2 108, S3 38.2% Fibo 107.484. 

GBP/USD on a Daily TF is being held back by the strong USD and dovish Mark Carney. Today, the Governor of the BoE Mark Carney, who is to give the helm over to Andrew Baily by March of this year, warned that the economy is sluggish and inflation is below target which may give way for further monetary easing to sustain economic growth. 

Technically: The pair has been trading bearish for the past 3 days. MACD has been bearish since the cross on December 18th 2019. Bearish histogram is increasing. The pair met support around 1.30174 after crossing the 13EMA down. 

Resistance: R1 50% Fibo 1.31675, R2 1.33327

Support:  S1 48EMA 1.29899, S2 38.2% Fibo 1.28821, S3 1.27793.

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