13 February, 2017
The Japanese yen was weaker after the weekend meeting between Shinzo Abe and Donald Trump saw the leaders announce a new framework for a dialogue on trade, in what is being seen as Japan agreeing to the U.S. call for bilateral trade. Investors were initially jittery after the accusations of currency manipulation against Japan. The apparent lack of reference during the joint press conference saw investors shift focus back to Trump’s proposed announcement of tax reforms, expected any time this month.
The economic calendar is void of any clear events for today with the early part of the European trading session seeing the release of German wholesale prices.
EURUSD intra-day analysis
EURUSD (1.0622): EURUSD is seen extending declines following the inside bar break out to the downside last week. With support at 1.0600, we can expect to see price pushing lower in the near term for a test towards 1.0600 - 1.0550 support region. On the 4-hour chart, the Stochastics remains oversold and could spark a possible bounce to the upside on the initial test to 1.0600 support. Resistance is seen only at 1.0700 which could see weak short positions near 1.0644 being trapped as price could possible pare losses and retest the resistance level near 1.0700.
USDJPY intra-day analysis
USDJPY (113.85): The U.S. dollar surged higher against the yen after price briefly dipped to the support level near 113.00 - 112.50. The bounce off this support level comes as USDJPY is attempting to break out from the triangle pattern. To the upside, resistance at 115.36 will be in focus as long as the support near 113.00 - 112.50 holds up. In the event that price fails to breakout from the trend line, USDJPY could remain range bound with the declines likely to accelerate below 112.50.
XAUUSD intra-day analysis
XAUUSD (1229.51): Gold prices rallied back to 1235.50 resistance level on Friday and the declines are likely to continue to the downside following the lower high formation in prices. Support at 1220.00 will be in focus to the downside and break down below this support will see gold prices extend the declines towards 1200.00 - 1196.50. The 4-hour chart shows an unfilled gap at 1233.58, which could be tested in the near term ahead of further declines.
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