Currencies
- EUR/USD: This pair has formed a downward wedge pattern on a 4 hour time frame. The next support is near the 1.0706 level and the resistance is 1.1082.
- USD/JPY: The pair has eased off from OUR Identified resistance level (121.87-121.51) (in profit of 175 pips) is trading above its upward trend line on a 4 hour time frame. The near term support is at 118.35 and the resistance is at 123.06.
- GBP/USD: The pair fell from Our Identified resistance zone (1.4476-1.4443, given on the 26 Jan) is trading above its 100 day moving average on a 4 hour time frame. The next resistance is near 1.447 and the support is 1.40.
Indicators
Indices
- Asian markets closed mostly lower by adding more losses on top of yesterday. The Nikkei index was still the worst performer during the session and it closed lower with a loss of -3.15%. The index is down by 9.53% during the past 5 sessions.
- European futures are trading lower during the early hours of trading. The DAX index is trading lower with a loss of 0.60%. The index is down by nearly 3.58% over the past five sessions.
- The US futures are trading lower ahead of the ADP employment data. The DOW index was the worst performer on the last trading day with a loss of 1.87%.
Top News
- The Chinese Caxin services PMI came in at 52.4 while the forecast was for 50.5.
- The Spanish services PMI data came in at 54.6% while the previous reading was at 55.1%.
- The Eurozone services PMI data matched the previous reading of 53.6.
Market Sentiment
- Crude Oil: The black gold has broken its downward trend line on a 60 minute time frame. The next support is near the 27.87 and the resistance is 34.
- Gold: The precious metal is trading above its upward trend line on a 4 hour time frame. The next resistance is at 1140 and the support is at 1100.
- The VIX index dropped by 2.99% during the last session.
Top Economic data
9:30 GMT
GBP – Services PMI
13:15 GMT
USD – ADP Non-Farm Employment
15:00 GMT
USD – ISM Non-Manufacturing PMI
15:30 GMT
USD – Crude Oil Inventories
Trends
Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam