Intraday and swing scenarios based on price action and volume profile.
Risk-on mood remains intact
2021-01-27 • Updated
Ichimoku Kinko Hyo
CHF/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
XAG/USD: Silver consolidates between 23.6% and 38.2% retracement areas.
EU Market View
Asian equities traded mixed and attempted to shrug off the weak handover from the US where there was a slight negative bias. The global economy appears to be losing momentum a bit and there is no clear sign yet that COVID-19 infections are slowing even after vaccinations have started in some places. S&P500 futures were mostly flat, capped by caution ahead of the Fed's policy meeting as well as profit-taking on cyclical shares after stellar gains this month. The S&P500 is now trading at 22.7 times its expected earnings, near its September peak of 23.1 times, which was its most inflated level since the dotcom bubble in 2000. Today we expect U.S. Federal Reserve to stick to its dovish tone to help speed the economic recovery when it concludes its two-day policy meeting on Wednesday.
Looking ahead, highlights from macroeconomic calendar include German GFK consumer sentiment, US durables, FOMC rate decision and Fed Chair Powell press conference, NZ trade, ECB's Hakkarainen, Lane, and US. Earnings from Apple, Facebook, Boeing, Tesla, Blackstone.
EU Key Point
- France January consumer confidence 92 vs 94 expected.
- Germany reports 13,202 new coronavirus cases, 982 deaths in latest update today.
- The White House will begin regular COVID-19 briefings again from Wednesday.
- New US Treasury Secretary Yellen highlighted coordination with the Fed.
- UK to require returnees to hotel quarantine from 30 countries.
- US to purchase another 200m doses of coronavirus vaccines.
Corrective Bearish Scenario: Sells below 38680 with TP1: 38560, TP2: 38500, TP3: 38432 Continuation Bullish Scenario: Buys above 38816 with TP: 39000
Bullish Scenario: Buy between 17515 and 17600 with TP1: 17681; TP2: 17720 intraday, and TP3: 17750 / 18000 in extension. Bearish Scenario in case of breaking the buying zone: Sell below 17500 with TP1: 17469; TP2: 17421, and TP3: 17358 in extension.
In the early hours of Tuesday, the US Dollar faces challenges in maintaining its strength against major currencies, with the US Dollar Index struggling to surpass the 104.00 mark. Investors are eagerly anticipating the release of key economic data, including January Durable Goods Orders and the Conference Board's Consumer Confidence Index for February. Additionally, the economic calendar includes reports...
In the early hours of Tuesday, the US Dollar faces challenges in maintaining its strength against major currencies, with the US Dollar Index struggling to surpass the 104.00 mark. Investors are eagerly anticipating the release of key economic data, including January Durable Goods Orders and the Conference Board's Consumer Confidence Index for February. Additionally, the economic calendar includes...
This article uses price action and volume profile techniques to address a fundamental and technical perspective based on the daily chart analysis of spot gold (XAUUSD).