Morning Insights 16th January

Razvan Mihai

Analyst

Instrument: EURUSD

Intraday: Bullish

Technical Analysis

Preference:  Buy position is envisaged  if price trades above 1.11581 with take profit at 1.11842

Alternative scenario: Sell position is envisaged if price trades below 1.11376 with take profit at 1.11177.

Fundamentals:

ECB Monetary Policy Meeting Accounts (EUR) 1:30pm

Core Retail Sales m/m (USD) 2:30pm

Retail Sales m/m (USD) 2:30pm

ECB President Lagarde Speaks (EUR) 7pm

Comment: The pair is envisaged to trade higher given that the U.S president  Trump finally signed a trade deal with China last night. Investors are envisaged to see this as a sign of growth in the global economy.


Instrument: GOLD

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged  if price trades above 1556.81 with take profit at 1564.95

Alternative scenario:  Sell position is envisaged if price trades below 1548.68 with take profit at 1533.93.

Fundamentals:

Core Retail Sales m/m (USD) 2:30pm

Retail Sales m/m (USD) 2:30pm

Comment:  The commodity is envisaged to trade higher given that the U.S president  Trump finally signed a trade deal with China last night. However, the US still keeps its tariffs on billions worth of China's goods meaning the trade dispute between the two economies isn't over, hence, investors would be looking more into the safe haven

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