Morning Insights 26th January

Simon Alagbe

Analyst

Instrument: US 30 (Dow Jones Industrial Average)

Technical Analysis

Bearish Preference: Sell position is envisaged if price trades below 30731 with take profit at 30561

Bullish Preference: Buy position is envisaged if price trades above 30790 with take profit at 30875

Fundamentals:

CB Consumer Confidence (US) 4:00 PM

Comment: DJIA traded lower in yesterday's session after uncertainty grew on the timing of the expected financial support system from the Biden Administration. The warning from Democratic Majority leader Chuck Schumer further fueled the scepticism when he said a comprehensive deal could be a few weeks away. The index is expected to regain some lost ground in today's session as investors fully digest the situation of the stimulus package amidst the release of earnings report. 



Instrument: USDJPY

Technical Analysis

Bullish Preference: Buy position is envisaged if price trades above 103.836 with take profit at 103.975

Bearish Preference: Sell position is envisaged if price trades below 103.556 with take profit at 103.439

Fundamentals :

CB Consumer Confidence (US) 4:00 PM

Comment: The dollar was down on Tuesday morning in Asia, after seeing small gains earlier in the session amid ever-rising numbers of global COVID-19 cases and doubts over both the size and speed of further U.S. stimulus measures. Meanwhile, the U.S. is due to release a slew of economic data throughout the week, including the fourth-quarter GDP.



Instrument: GOLD

Technical Analysis:

Bearish Preference: Sell position is envisage if price trades below 1845.90 with take profit at 1834.99

Bullish Preference: Buy position is envisaged if price trades above 1858.60 with take profit at 1865.55

Fundamentals:

CB Consumer Confidence (US) 4:00 PM

Comments: The White House says there's an “urgency” to passing President Joe Biden’s $1.9 trillion stimulus plan. But the market remains unsure how quickly it would pass, resulting in little relief Monday for the price of gold itself. Republican lawmakers have voiced objections to the expensive price tag for a $1.9 trillion stimulus package proposed by U.S. President Joe Biden earlier in the month. They have counter proposed a smaller plan targeting COVID-19 vaccine distribution.

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