Tradeo ceased offering trading services last year in May. Trading and ancillary will not recommence, and the brand/platform will be permanently discontinued.
For the clients with remaining balances, kindly send a withdrawal request through your login or via chat or email. If there are any queries or concerns relating to your account or any other matter, please email us at [email protected]
Shrugging-off the Wall Street tech rally, the market mood remained tepid so far this Tuesday, in the face of skepticism over a likelihood of a US fiscal stimulus deal to be reached soon. Further, news that the UK pharma giant, Johnson and Johnson, paused its COVID-19 vaccine trial due to an unexplained illness also powered the risk-off flows.
EUR/USD remained pressured around 1.1800 amid vaccine news and re-imposition of stricter restrictions in Germany, Spain and France to contain the coronavirus second-wave. New infections in Germany once again top 4000 on Tuesday.
GBP/USD consolidated the early drop around 1.3050 ahead of the UK jobs report. On Monday, BOE Governor Andrew Bailey downplayed expectations of negative interests while UK PM Boris Johnson announced a three-tier system of restrictions for England with the Liverpool region under strictest tier 3. The cable hit five-week highs of 1.3083 despite the looming no-deal Brexit risks.
Gold held the lower ground around the $1915, looking to extend the correction from two-week highs of $1930.
WTI rebounded to test $40 after hitting a five-day low at $39 amid the return of oversupply concerns.
Gold (XAU/USD) attempts a bounce on the $1900 level but the risks remain skewed to the downside amid a broad-based US dollar rebound, as the haven demand returns. The reports that the Johnson and Johnson COVID-19 vaccine study has been paused fuelled the risk-off lows
Further, the delay in a potential US fiscal stimulus deal adds to the worries about the US economic recovery and benefits the US dollar bulls. Markets now await fresh stimulus news and US CPI release for next gold trades.
Gold: Key resistances and supports
The Technical Confluences Indicator suggests that the XAU bulls are attempting a tepid bounce while challenging a fierce resistance at $1918. That level is the confluence of the Fibonacci 23.6% one-week, previous high one-hour and pivot point one-day S1.
Acceptance above the latter could put the next upside barrier at risk, $1923, where the Fibonacci 23.6% one-day coincides with SMA200 four-hour.
Further up, the convergence of the daily high and SMA10 four-hour at $1925 will cap the recovery attempt. Strong resistance at $1932, the previous week high, will be the level to beat for the bulls.
Alternatively, a break below the $1911 (previous low four-hour) support is needed for the sellers to challenge the critical downside target of $1904 (Fibonacci 38.2% one-month).
A sharp drop below the latter cannot be ruled towards $1895, the Fibonacci 61.8% one-week and SMA100 four-hour intersection.
Daily Swing Chart Technical Forecast
Looking at the early price action, the direction of the USD/JPY on Tuesday is likely to be determined by trader reaction to the minor Fibonacci level at 105.389.
A sustained move under 105.389 will indicate the presence of sellers. This could trigger another acceleration to the downside since the nearest downside target is a potential support cluster at 104.944 to 104.903.
A sustained move over 105.389 will signal the presence of buyers. The first upside target is the price cluster at 105.526 – 105.527.
Overtaking 105.527 could trigger an acceleration to the upside with the next potential target the main Fibonacci level at 105.885.
Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. UR Trade Fix Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.
It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests when providing our services.