EURUSD bearish sentiment in the asset is intensifying – 28 January 2022

EURUSD bearish sentiment in the asset is intensifying

EURUSD bearish sentiment in the asset is intensifying. The European currency shows ambiguous dynamics of trading against the US dollar during today’s Asian session, consolidating near the level of 1.1150. The day before, EUR/USD showed a steady decline, as a result of which it updated record lows from June 2, 2020.

The reason for the strengthening of “bearish” sentiment yesterday was the strong data on the dynamics of US GDP for Q4 2021. The US economy expanded 6.9% in Q4 after expanding 2.3% in the prior period. Analysts had expected growth of only 5.5%. The published statistics correlate with the words of the Chair of the US Federal Reserve, Jerome Powell, who commented on the prospects for the regulator’s monetary policy on Wednesday. The official noted the achievements of the American economy and said that board members are considering a rate hike as early as March. Moreover, under certain circumstances, the regulator can adjust the rate by 50 basis points at once.

Today, investors will be focused on statistics on the dynamics of German GDP for Q4 2021. Also during the day, there will be a report on business sentiment in the euro area for January.

Support and resistance

Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is expanding; however, it fails to catch the surge of the “bearish” sentiment at the moment. MACD is going down preserving a stable sell signal (located below the signal line). Stochastic keeps a confident downward direction but is already approaching its lows, which indicates the risks of oversold EUR in the ultra-short-term.

Resistance levels: 1.1185, 1.1220, 1.1255, 1.1300.

Support levels: 1.1130, 1.1100, 1.1054, 1.1000.

EURUSD bearish sentiment in the asset is intensifying

WTI Crude Oil correction after reaching record highs – 27 January 2022

WTI Crude Oil correction after reaching record highs

WTI Crude Oil correction after reaching record highs. Prices for WTI Crude Oil show a slight decrease, correcting after a strong growth the day before, which led to an update of record highs. Quotations continue to be supported by fears of supply disruptions, which are only intensifying as tensions grow in Eastern Europe and the Middle East.

In turn, pressure on the instrument on Wednesday was exerted by a published report from the US Department of Energy, according to which oil product inventories last week increased by 2.38M barrels to 416.19M barrels. Over the past period, the growth rate was 0.515M barrels, while the forecasts even suggested a decrease of 0.728M barrels.

Support and resistance

Bollinger Bands in D1 chart demonstrate the uptrend. The price range is narrowing, pointing at the ambiguous nature of trading in the short term. MACD histogram is slightly growing keeping a weak buy signal (located above the signal line). Stochastic is located in close proximity to its highs, which points to the risk of the overbought instruments in the ultra-short-term.

Existing long positions should be kept in the short and/or ultra-short-term until the signals from technical indicators clear up.

Resistance levels: 86.63, 88.00, 89.00.

Support levels: 85.00, 84.00, 82.50, 81.00.

WTI Crude Oil correction after reaching record highs

USDCHF investors are waiting for the decision of the FOMC – 26 January 2022

USDCHF investors are waiting for the decision of the FOMC

USDCHF investors are waiting for the decision of the FOMC. The US currency shows flat trading dynamics against the Swiss franc during the Asian session on January 26, holding near a two-week high of 0.9175 and waiting for new drivers to move.

Activity on the market remains restrained, as market participants prefer to wait for the publication of today’s minutes of the US Federal Reserve meeting. In January, no changes in monetary policy parameters are expected, but forecasts for the near future will be extremely important. The agency is close to launching an interest rate hike cycle, and the first step on this path could be taken as early as March. In total, four adjustments of the indicator are expected this year and operations to reduce the balance of the US Federal Reserve. Today’s department decision will play a key role in determining the dynamics of the USD/CHF pair.

On Wednesday, traders will also follow the US statistics on new home sales for December. Forecasts suggest a moderate indicator acceleration from the previous 0.744M to 0.760M.

Support and resistance

Bollinger Bands show ambiguous dynamics on the daily chart: the price range narrows, indicating the multidirectional nature of last week’s trading. MACD grows, keeping a relatively strong buy signal (the histogram is above the signal line). Stochastic demonstrates similar dynamics, being located slightly above the middle of its working area.

The current readings of technical indicators do not contradict the further development of corrective growth in the short and/or ultra-short term.

Resistance levels: 0.9200, 0.9220, 0.9250, 0.9276.

Support levels: 0.9157, 0.9125, 0.9100, 0.9073.

USDCHF investors are waiting for the decision of the FOMC