ETHUSD, “Ethereum vs US Dollar”

ETHUSD is trading at 1362.61; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 1295.00 and then resume moving upwards to reach 1540.00. Another signal in favor of a further uptrend is a rebound from the rising channel’s downside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 1205.00. In this case, the pair may continue falling towards 1065.00.

NZDUSD, “New Zealand Dollar vs US Dollar”

NZDUSD is trading at 0.7134; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen at 0.7165 and then resume moving downwards to reach 0.7005. Another signal in favor of a further downtrend will be a rebound from the descending channel’s upside border. However, the bearish scenario may be canceled if the price breaks the cloud’s upside border and fixes above 0.7255. In this case, the pair may continue growing towards 0.7345.

USDCHF, “US Dollar vs Swiss Franc”

USDCHF is trading at 0.8878; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 0.8860 and then resume moving upwards to reach 0.8970. Another signal in favor of a further uptrend will be a rebound from the rising channel’s downside border. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 0.8805. In this case, the pair may continue falling towards 0.8715.

EURUSD is trying to keep its positive momentum; the “greenback” is retreating in anticipation of a new stimulus package.

The major currency pair continues moving upwards and doesn’t seem to turn around. The current quote for the instrument is 1.2140.

Capital markets are moving against the USD in anticipation of a new enormous stimulus package from the White House to support the American economy. It’s not the first week this topic is being discussed – there were a lot of words about the advantages of the package and it looked like the USD enthusiasts accepted them. However, right now, when the package is just several days away, emotions are moving to the front burner again. And it’s not the last time we see these emotions – one сan be absolutely sure they will return at the time of launching the package.

The former Chairwoman of the US Federal Reserve Janet Yellen said yesterday that China was “playing with loaded dice” in its relations with the USA. According to Yellen, the USA had to stand against economic and trade pressure from Beijing. In addition to that, Yellen said she was worried about the US budget and couldn’t be sure about the stability of the national debt. All these factors are a result of Donald Trump’s program. However, there is one thing, in which she is stable as a politician: her priorities imply helping people during the pandemic, investing in ecologically friendly technologies and infrastructure, which are intended to help the country’s population in the future.

Yellen believes that the Dollar rate should be regulated by market factors only. As for interest rates, they should remain low as long as they have to.

It seems like Biden’s office has already decided and the question “What can Janet Yellen do as the US Federal Reserve Chairwoman?” is not even discussed right now. If Yellen focuses on the labor market and how to support it, it will be a win and good news for the USD.

GBPUSD has been slowly rising for the fourth consecutive trading session.
On Wednesday, the British Pound intends to keep its positive momentum against the USD. The current quote for the instrument is 1.3656.

The statistics published in the morning showed that the CPI in the United Kingdom was 0.6% y/y in December after being 0.3% y/y in the previous month and against the expected reading of 0.5% y/y. The Core CPI showed 1.4% y/y after being 1.1% y/y over the same period.

There is no threat of deflation right now and that’s good. The Bank of England, seeing the CPI becoming more active, won’t be pressured to expand the stimulus program. It’s a good signal and the regulator should be afraid that the indicator may boost – it will take care of itself later.

The RPI was 1.2% y/y in December after being 0.9% y/y the month before.

After these reports were published, sentiments in GBPUSD didn’t change – investors are still buying it.

The latest data from CFTC says that an increasing number of investors are going bull and expecting the Pound to grow and reach the highs of March 2020. Mostly, they are hedge funds, which are sure of the vaccination effectiveness in the United Kingdom that may decrease pressure on the country’s economy and financial system due to the Brexit uncertainty – it already happened anyway.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, after finishing a slight correction, GBPUSD is forming another rising impulse to reach the high at 1.3740. If this level is broken, the price may continue growing to reach the post-correctional extension area between 138.2% and 161.8% fibo at 1.3790 and 1.3980 respectively. However, an alternative scenario says that the pair may rebound from the high and start a new mid-term descending wave towards 23.6%, 38.2%, 50.0%, 61.8%, and 76.0% fibo at 1.3465, 1.3315, 1.3193, 1.3071, and 1.2924 respectively.

In the H1 chart, the descending correctional wave was approaching 38.2% fibo at 1.3510 but has failed to reach it. In the nearest future, the price may break the high at 1.3710 and then continue growing towards the post-correctional extension area between 138.2% and 161.8% fibo at 1.3782 and 1.3828 respectively.

EURJPY, “Euro vs. Japanese Yen”

In the H4 chart, EURJPY is completing its decline after another divergence on MACD and may start a new rising wave soon. Possibly, the pair may resume growing to break the mid-term 61.8% fibo at 128.65 and then continue moving to reach the post-correctional extension area between 138.2% and 161.8% fibo at 129.16 and 130.43 respectively. The key support is the fractal low at 121.62.

As we can see In the H1 chart, after correcting towards 50.0% fibo, the pair is moving upwards but may soon start another descending impulse to reach 61.8% fibo at 124.62. The local upside target is the high at 127.49, a breakout of which will hint at a further uptrend.

AUDUSD, “Australian Dollar vs US Dollar”

In the H4 chart, AUDUSD is moving above the 200-day Moving Average, thus indicating an ascending tendency. In this case, the price is expected to break 7/8 and then continue growing to reach the resistance at 8/8. However, this scenario may be canceled if the price breaks the support at 6/8 to the downside. After that, the instrument may reverse and continue falling towards the support at 5/8.

As we can see in the M15 chart, the pair has broken the upside line of the VoltyChannel indicator and, as a result, may continue trading upwards.

NZDUSD, “New Zealand Dollar vs US Dollar”

In the H4 chart, after rebounding from the 200-day Moving Average, NZDUSD is moving above it. In this case, the price is expected to break 5/8 and then continue growing towards the resistance at 6/8. However, this scenario may no longer be valid if the price breaks 4/8 to the downside. After that, the instrument may reverse and continue falling to reach the closest support at 3/8.

As we can see in the M15 chart, the price has broken the upside line of the VoltyChannel indicator and, as a result, may continue growing to reach 6/8 from the H4 chart.

XAUUSD, “Gold vs US Dollar”

As we can see in the H4 chart, after plunging, the metal is correcting within a sideways channel. Right now, after forming several reversal patterns, such as Harami and Hammer, close to the support area, XAUUSD may reverse and resume growing towards the resistance level. In this case, the upside target will be at 1870.00. At the same time, an opposite scenario implies that the price may continue its decline towards 1800.00 without reversing and correcting.

NZDUSD, “New Zealand vs. US Dollar”

As we can see in the H4 chart, after completing its quick decline, the pair is correcting. Right now, after forming a Harami pattern close to the horizontal support level, NZDUSD is reversing. The correctional target remains at the resistance area at 0.7185. However, an alternative scenario implies that the price may continue falling towards 0.7066 without any significant corrections.

GBPUSD, “Great Britain Pound vs US Dollar”

As we can see in the H4 chart, the uptrend continues. Right now, after forming a Harami pattern not far from the support area, GBPUSD is reversing. In this case, the upside target is at 1.3750. After that, the instrument may break the resistance level and continue moving upwards. Still, there might be an alternative scenario, according to which the asset may form a new pullback towards 1.3510 before resuming its growth.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is trading at 0.7706; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s upside border at 0.7725 and then resume moving downwards to reach 0.7625. Another signal in favor of a further downtrend will be a rebound from the descending channel’s upside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 0.7755. In this case, the pair may continue growing towards 0.7845.

USDJPY, “US Dollar vs Japanese Yen”

USDJPY is trading at 103.98; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 103.85 and then resume moving upwards to reach 104.95. Another signal in favor of a further uptrend will be a rebound from the downside border of the Triangle pattern. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes above 103.25. In this case, the pair may continue falling towards 102.35. To confirm further growth, the asset must break the pattern’s upside border and fix above 104.45.

EURUSD, “Euro vs US Dollar”

EURUSD is trading at 1.2094; the instrument is moving inside Ichimoku Cloud, thus indicating a sideways tendency. The markets could indicate that the price may test the cloud’s upside border at 1.2105 and then resume moving downwards to reach 1.1995. Another signal in favor of a further downtrend will be a rebound from the resistance level. However, the bearish scenario may be canceled if the price breaks the cloud’s upside border and fixes above 1.2140. In this case, the pair may continue growing towards 1.2235.

On Tuesday morning, EURUSD is a bit “in the black” due to excellent conditions for a correction.

The major currency pair is trying to find some support for recovery. The current quote for the instrument is 1.2100.

There are barely any statistics but investors have plenty of other things to watch.

For example, Reuters poll results show that a new stimulus package, the PEPP worth €1.85 trillion for the next 9 months, from the European Central Bank will have little positive influence on the Euro Area economy. Experts believe that in this light, the economic outlook of the region becomes even more pessimistic. According to the research, in the fourth quarter of 2020, the European GDP lost 2.5% after adding 12.5% in the previous quarter. Market expectations for the first quarter of 2021 imply +0.6%, which is twice less than official forecasts.

In the second, third, and fourth quarters, the indicator may possibly show +2.3%, +1.9%, and +1.0% respectively. it’s not the best news the Euro can get but they are pretty close to reality.

The readings will be better if Europe beats and disburdens the coronavirus pandemic quickly.

The former Chairwoman of the US Federal Reserve Janet Yellen believes that the American economy can find itself in a long and tough recession unless Congress approves additional stimulus packages. Yellen will speak today and she is believed to be assigned to the position of the Fed leader by newly-elected president Joe Biden. Yellen already held this position from 2014 to 2018: she was focused on fighting unemployment and knows how to come to a compromise with other policymakers. If she really gets this job again, it will be at least interesting.