USDJPY D1 02 05 2021 1609

The daily USDJPY price chart shows the turnaround in the pair since the start of the year. The double bottom made on January 5/6 prompted the pair to turn higher, much  of the Bank of Japan who was starting to make noises about the strength of the Yen. The recent acceleration higher was aided by the 20- and 50 day simple moving averages crossing over, while yesterday’s break above, and today’s open above, the 200-day sma is another positive chart signal. Above here a series of old lower highs offer reference points all the way back to 108.16. Above here, progress may slow and plenty of work will need to done before 110 hooves into view.

 

 

Our information/charts are NOT buy/sell recommendations. Are strictly provided for educational purposes only. Trade at your own risk and analysis.
Contact our advisors through website chat 24/7. 

https://mscapitalconsulting.com/blog/global-equities       

 

Looking higher, the DAX could be on its way to achieving a new record soon, with the 14131 level being the line to cross. Given the general tone in risk trends, global stock markets continue to look steadied for further gains in the near-term.

Crossing 14131 will have the DAX in new record territory, but that doesn’t mean there might not be any new levels or lines of resistance. The recently broken trend-line from the very tail-end of October may act as a minor level. It currently resides in the 14300s and quickly rising.

GER30 D1 02 03 2021 1750

 

If the DAX struggles to cross into record territory, the index could may stall out and go into range-mode for a bit. This could end up a bullish consolidation as long as the area in the 13400s, just recently held, continues to hold.

From a tactical standpoint, given the proximity to the record high and distance off support, it doesn’t present the best opportunity from a risk/reward perspective to initiate fresh longs. As far as shorts are concerned, there might be an opportunity on a failure to break out as range conditions set in. But generally speaking, a long bias remains in play until we see pervasive price action suggesting otherwise.

 

Our information/charts are NOT buy/sell recommendations. Are strictly provided for educational purposes only. Trade at your own risk and analysis.
Contact our advisors through website chat 24/7.  

https://forexcapitalexperts.com/services

The US Dollar could come under further pressure against its major counterparts in the near term, as attention shifts towards the Federal Open Market Committee’s (FOMC) upcoming monetary policy meeting. The central bank is expected to keep its monetary policy settings steady while reiterating that accommodative monetary policy conditions are set to endure for the foreseeable future.

US Dollar Basket 20210127 12.00

4hour  chart bolsters the bearish outlook depicted on the daily timeframe, as prices carve out a Head and Shoulders reversal pattern above range support at 89.95 – 90.05.

A convincing break below 89.90 is required to validate the bearish reversal pattern and propel the index back towards the yearly low (89.21), with the implied measured move suggesting price could fall 1.4% from current levels to test the March 2018 low (88.94). Remaining constructively perched above 90.00 could allow buyers to drive the index back towards the January 26 high (90.61). 

 

Our information/charts are NOT buy/sell recommendations.
Contact our advisors through website chat 24/7.

https://forexcapitalexperts.com/services

 

UK100 D1 02 02 2021 1410

 

The lag in the FTSE 100 was mostly due to Brexit concerns when the initial recovery was gaining traction in the summer months, but ongoing concerns about the recovery of the economy continue to drag the index behind its peers.
Further bullish momentum may struggle to bring the FTSE 100 above the 6,600 mark, where the 50-day moving average is now residing. A break above this area is likely to consolidate further buyer interest, with the 6,800 mark being the next objective in its attempt to push higher. To the downside, the 6,300 level continues to show strong support before the horizontal 6,255 line comes into play, the lowest level since the strong rise back in November.

The DAX hasn’t really done much in the last few weeks as it continues to converge at the 13,830 mark. The lack of bullish support has left the index consolidating between the all-time high at 14,140 and the horizontal support at 13,530 as it waits for the next risk event to offer some direction. The index still continues to be expensive at current levels and we may see sellers popping into the market as they buy the peaks in an attempt to bring it down further.
Next week we’ll see GFK consumer sentiment reading for February being the most forward-looking. The question is whether markets will care. 

Germany 30 20210122 12.58 1

So where does this leave the DAX? The index is still in a pretty strong position, and although European equities are lacking the upside momentum to keep up with risk-on sentiment, we haven’t really seen yet a strong bearish signal that price will be reversing as of now, which means the DAX continues to be expensive.

13,830 seems to be a good support area in the short-term, and we see price converging to this area, but it is not until we see price head towards 13,530. Consolidation between this level and the all-time high at 14,140 is likely something we’ll continue seeing in the next few weeks unless we see a significant risk event that moves markets.  

 

Our information/charts are NOT buy/sell recommendations. Are strictly provided for educational purposes only. Trade at your own risk and analysis.
Contact our advisors through website chat 24/7. 

https://forexcapitalexperts.com/services

Our Partners

logo ms capital consulting   pawlogo5

Payments

formas de pago