After good CPI news for the USD, the pair continues its downtrend. Expectations were .3% and we got .6% reported. Oil demand seems to be rising which helps out Canada's economy. Limiting supply has really helped with oil demand. The US expects a higher production for the rest of the year while investors think a recovery is underway. Some key support around 1.32100s, and a break in this level would be bearish sentiment. Inflation on the USD seems to be taking its toll on pairs like these. We're looking at a bounce off support and test the 200 DMA or next resistance at 1.34980.
NZD/JPY reported cash rates to stay the same yesterday, and the pair rallied on that good news. Some analysts think the Yen will rise on US-China tensions which is a bad sign for both economies and the Yen is considered a safe haven. We're looking to see price run up to resistance at 71.649 before we get bearish sentiment and the pair takes a second retest in the consolidation zone.
Unemployment rate and employment change is to be reported later today on Aussie which will be a volatile moment for the pair. Expectations are low as unemployment forecasts at 7.8% from 7.4% last month. Both the USD and Aussie are suffering from their dollars weakening, however, with good news on the dollar, we may see a rally soon. The USD has been beaten down the past couple months and analysts are expecting a rally on the USD pairs. The dollar index (DXY) hovers around 93 after coming up from 92 last week. Long term, the dollar looks like it could weaken over the years as trillions of dollars are being printed, but for now, we're looking for a rally here soon. Now that the global economy has slowed, tensions between the US and China are terrible, and governments are concerned of another coronavirus wave, investors will turn to safe-havens like the USD.
Speaking of safe-havens, Bitcoin might just be something investors want to put their money into. The idea of investing in something other than fiat money seems attractive during times of economic hardship, especially when a country's currency begins to weaken. When the crypto failed to break the 12000 level, investors talked about potential shorts. However, it looks like Bitcoin wants to come in for another test on resistance which could be the time it breaks to the upside.
Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.
Weekly Forex Forecast for GBPUSD, GBPCAD, EURJPY, XAUUSD (22-26 February 2021) Hey everyone! Welcome to this week's forex forecast for the week ending January 29th, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at GBPUSD, GBPCAD, EURJPY & XAUUSD. Psst! It is my birthday tomorrow on the 22nd, so I have […]
Should You Do The FTMO Challenge? There are many traders out there that believe they have what it takes and the skill to be a successful trader, except for the fact that they do not have enough capital to trade big time. There are companies out there that offer to fund traders and take percentages […]
Weekly Forex Forecast for USDJPY, GBPNZD, EURJPY, XAUUSD (15-19 February 2021) Hey everyone! Welcome to this week's forex forecast for the week ending January 29th, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at USDJPY, GBPNZD, EURJPY & XAUUSD. USDJPY Price has recently broken out of this long-term descending channel and […]
Politics preventing new financial stimulus The economic recovery in the major global economic powers depends on several important factors. One of the most vital part, the spread of the virus and the government's answers to it. With a decrease in daily cases of COVID-19 to 50,000 in the U.S.A. Yet U.S. A remains the most […]
Our team has unfortunately received many reports of scammers using our content and pretending to be us. While we will continue to report these accounts to the authorities as we receive reports, we may not always catch them in time. Below our a list of things to look out for before making a purchase to any […]
Warren Buffett is one of the most idolised, investors in the world. At the time of writing , his company, Berkshire Hathaway, has a market cap of $495 billion and Buffett himself has a net worth of $79 billion. His approach to value investing, combined with his influence over the companies he invests in , […]