Morning Insights 29th January

Simon Alagbe

Analyst


Instrument: EURUSD

Technical Analysis

Bearish Preference: Sell position is envisaged if price trades below 1.20819 with take profit at 1.20612

Bullish Preference: Buy position is envisaged if price trades above 1.21137 with take profit at 1.21304

Fundamentals:

German Prelim GDP q/q (EUR) 10:00 am

Comment: Improvement in risk appetite for riskier assets is expected to pressure the Greenback, regarded as a safe-haven currency. EURUSD is currently supported by the 1.20855 price region lending support to a move to the upside.



Instrument: GOLD

Technical Analysis:

Bearish Preference: Sell position is envisaged if price trades below 1838.93 with take profit at 1835.33

Bullish Preference: Buy position is envisaged if price trades above 1852.01 with take profit at 1857.53

Fundamentals:

No major economic data

Comment: After a week trending downwards, gold was up Friday morning in Asia as investors waited for news from the U.S. on a $1.9 trillion stimulus package proposed by President Joe Biden. Currently Gold is below the 48 EMA on the daily and the stimulus news may change its momentum in the long run.



Instrument: US30

Technical Analysis:

Bearish Preference: Sell position is envisage if price trades below 30014 with take profit at 29910

Bullish Preference: Buy position is envisaged if price trades above 30403 with take profit at 30531

Fundamentals:

No major fundamentals

Comments: The Dow cut its gains into the close but still ended higher Thursday, driven by mostly bullish quarterly earnings and a rise in cyclicals on expectations the economy is set to rebound strongly. Investors also monitored volatile trading in shares of small-cap companies such as GameStop, which later saw a halt to trading from brokerages, drawing the attention of lawmakers in Washington.

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