USD/JPY breaks major support
The Japanese yen soared after the BoJ unexpectedly relaxed its yield cap. The previous rebound quickly had turned into a bull trap at 137.80 under the 20-day moving average. The sharp fall below 134.50 is a sign of liquidation, invalidating the recovery attempt. The August low of 130.50 is a critical floor to test the bulls’ resolve and its breach may pave the way for a bearish reversal in the new year. As the RSI sank into oversold territory, the former demand zone next to 135.00 has turned into a supply one.
-638072051751665383.png)
NZD/USD struggles for support
The New Zealand dollar edges lower over a larger-than-expected trade deficit in November. The bears have faded last week’s bullish momentum and pushed the kiwi back below 0.6400. This level has since become a fresh resistance which suggests strong pressure ahead. Previous lows around 0.6300 coincide with the 20-day moving average and an attempt to break below puts the pair at the risk of a deeper correction, with 0.6200 as a possible target. A close back above 0.6400 would keep buyers in the game.
-638072051216720740.png)
XAU/USD grinds resistance
A retreating US dollar boosted the appeal of bullion. Despite the metal’s choppy price action, the bulls have been looking to consolidate their gains above August’s high of 1805. With sentiment shifting to a brighter side, more buyers may place follow-up bids as the RSI drops back to the neutral area on the daily chart. This could be confirmed by the price bouncing off the 20-day moving average (1775) then the psychological tag of 1800. A close above the recent high of 1823 could attract momentum buyers and trigger a rally to 1860.
This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.
Authors' opinions do not represent the ones of Orbex and its associates. Terms and Conditions and the Privacy Policy apply.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.