USD/JPY tests support

The Japanese yen clawed back losses after the Q1 GDP beat expectations. The price is consolidating its gains after clearing the major supply area of 138.00 from the daily chart. 138.60 over the 20-day SMA saw buying interests propelling the greenback above the psychological level of 140.00. A close above 140.40 is needed to force the remaining sellers out and trigger an extended rally to the next hurdle at 142.20. Failing that, a drop below 138.60 would expose 137.40 on the 30-day SMA which is the bulls’ second line of defence.

USDJPY

NZD/USD attempts to bounce

The US dollar slipped after last week’s jobless claims came out higher than expected. On the daily chart, a fall below the demand zone of 0.6100 and a bearish MA cross indicate a cautious mood. A bounce to the supply zone around 0.6110 has met stiff selling pressure. A bullish breakout may not mean that the kiwi would be out of the woods yet as sellers could be expected around the support-turned-resistance of 0.6200. The latest low of 0.5990 is an immediate support and its breach would cause a new round of sell-off.

NZDUSD

S&P 500 hits 10-month high

The S&P 500 inches higher thanks to a rebound in technology names. Sentiment is still overwhelmingly upbeat as the index grinds its 10-month high at 4310. A bullish breakout would trigger a new round of rally to 4400. However, a bearish RSI divergence indicates a loss of momentum in the rally and could foreshadow a retracement most likely to be driven by profit-taking. A break below the closest support of 4230 would be a confirmation and send the price to the next support at 4170 which coincides with the 30-day SMA.

S&P 500

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


Recommended Content

Editors’ Picks

EUR/USD under pressure near 1.0350 after mixed sentiment data

EUR/USD under pressure near 1.0350 after mixed sentiment data

EUR/USD remains in the negative territory near 1.0350 in the European session on Tuesday, erasing a portion of Monday's gains. The pair is undermined by risk aversion and the US Dollar demand, fuelled by US President Trump's tariff threats, and mixed sentiment data.

EUR/USD News
GBP/USD drops to 1.2250 area on broad USD strength

GBP/USD drops to 1.2250 area on broad USD strength

GBP/USD stays under bearish pressure and trades deep in the red near 1.2250 on Tuesday as the USD gathers strength following US President Trump's tariff threats. The data from the UK showed that the ILO Unemployment Rate edged higher to 4.4% in the three months to November.

GBP/USD News
Gold price eases from over two-month top on stronger USD, positive risk tone

Gold price eases from over two-month top on stronger USD, positive risk tone

Gold price (XAU/USD) retreats slightly after touching its highest level since November 6 during the early European session on Tuesday and currently trades just below the $2,725 area, still up over 0.50% for the day.

Gold News
Bitcoin fails to sustain the $109K mark after Trump’s inauguration

Bitcoin fails to sustain the $109K mark after Trump’s inauguration

Bitcoin’s price steadies above the $102,000 mark on Tuesday after reaching a new all-time high of $109,588 the previous day. Santiment’s data shows that BTC prices quickly corrected, as social media showed major greed and FOMO among the traders in Bitcoin after President Donald Trump’s inauguration.

Read more
Five keys to trading Trump 2.0 with Gold, Stocks and the US Dollar

Five keys to trading Trump 2.0 with Gold, Stocks and the US Dollar Premium

"I have the best words" – one of Donald Trump's famous quotes represents one of the most significant shifts to trading during his time. Words from the president may have a more significant impact than economic data.

Read more
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

Majors

Cryptocurrencies

Signatures