U.S. equities post a new record high. Euro looks to ECB meeting

8 December, 2016

U.S. equities edged higher to post new highs in yesterday's trading marking one of the strongest one day gains since the November elections. The DJIA gained 1.6% while the S&P500 closed with 1.3% gains. The rally in the equities came amid no specific triggers in the market. Looking ahead the European Central Bank's meeting today will be the focus as the central bank is expected to announce an extension to its QE program. The single currency will no doubt come under pressure into the ECB's meeting.

EURUSD Intra-day Analysis

EURUSD (1.0776): EURUSD was range bound in yesterday's session, forming an inside bar from Tuesday's range. Resistance at 1.0765 remains in focus as the euro is seen attempting to breach this level. On the 4-hour chart, price action is currently showing a consolidation into a rising wedge pattern with 1.0800 being the next key resistance that will be challenged. Failure to breakout higher could see the EURUSD pull back towards 1.0700 with the possibility to extend the declines down to 1.0600. The untested support lower at 1.0500 remains a key focus as EURUSD could dip to this support on dovish ECB signals.

USDJPY Intra-day Analysis

USDJPY (113.39): USDJPY remains range bound attempting to breach the 114.00 with little success yesterday. As a result, the price is seen currently breaking down below 113.50 support which could open up further declines to 109.750 - 109.50 level. While this could offer some short-term support, further declines cannot be ruled out towards 105.50 - 105.00 region. To the upside, the consolidation is likely to continue in which case, 113.50 needs to be challenged for support on a breakout above 114.50. Price action remains trading within the range from Monday, and this could indicate a strong breakout in the near term with the bias to the downside.

XAUUSD Intra-day Analysis

USDCAD (1176.70): Gold prices are looking to recover from the lows, but the range established on Monday remains key. Gold prices have been trading within this range for two days, and an upside breakout is essential to extend short-term gains. On the daily chart, 1200 resistance remains a strong level which could cap the gains initially, unless the gains come on a strong catalyst. On the 4-hour chart, prices remain well supported above 1170 - 1161 levels, which could see gold trading within the 1200 resistance level. Below 1161, gold prices could turn weaker potentially targeting the 1150 support to the downside.


Source link  
Dollar continues to slide

The greenback continued to weaken against some of the major currencies yesterday amid a quiet trading day...

Dollar looks to a new week

The US dollar index will be looking to a fresh week with the possibility of a rebound following last week's sharp declines..

US dollar rebounds as investor nerves cool

The US dollar managed to stem the strong declines after developments from Washington...


EURUSD unstoppable at a 6-month high

The euro surged ahead to a fresh 6-month high earlier this morning as the price was seen tradingþ...

Will UK's wages catch up?

The US dollar extended declines strongly for another day as economic data...

US dollar stays subdued

The latest monthly manufacturing activity report released by the New York Fed yesterday...


US dollar slips on soft inflation figure

The US dollar fell sharply on Friday after data showed that consumer price index rose 0.2%...

US dollar looking weaker

Economic data from the US continued to remain robust with the initial jobless claims declining to 236,000 for the week...

Markets brace for UK Super Thursday

The Bank of England meeting, industrial and manufacturing production numbers and fresh inflation forecasts...

  


Share: