Market Analysis

Thoughts on EUR/USD at 1.20ish

The EUR/USD has finally dipped back to long-term support around 1.20ish and I see a lot of bearish commentary around it. The bigger picture is still bullish as per the weekly chart, so I will be actively looking to go long on the first sign of a bull signal on the daily or lower time …

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CAD/JPY could follow GBP/JPY lead and break higher

Thanks to ongoing risk-on and reflationary trades, stock and crude oil markets extended their gains on Thursday, while safe-haven Japanese yen and gold sold off. The USD/JPY was among the best USD pairs, while other yen pairs also rallied – most notably, the GBP/JPY thanks to a hawkish Bank of England. Investors are now looking …

CAD/JPY could follow GBP/JPY lead and break higher Read More »

Gold and silver defending key support levels

Following last week’s big sell-off, gold and silver have both managed to cling on to their respective key support levels as investors weigh conflicting macro factors. With the recent rebound in bond yields, the outlook on the metals have become a little uncertain, but I am still of the view that both will rise further …

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Has GBP/USD cleared the way to 1.40?

The pound could be among the best-performing currencies in 2021 now that a no-deal Brexit has been avoided. With the UK also being among the first countries to roll out the Covid vaccines, I reckon the economy could rebound sharply once lockdowns end. Forward-looking investors are thus likely to buy the dips in the pound. …

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Gold testing KEY support

Will it hold or fold? Gold and silver have dropped sharply today as investors chose to put their money in the racier equity markets instead, owing to speculation that a Democratic sweep in the Senate could usher in further fiscal support for the economy. The dollar rebounded and yields rose, causing non-yielding precious metals to …

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GBP/USD likely heading to 1.40s

The GBP/USD is currently stuck between a hard place and a rock, but I think it will rise further over time. Although right now it is facing resistance due to fears over the economic impact of the latest national lockdown, the downside looks to be limited. I think the cable will be provided stronger support …

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Why I think GBP/USD’s “double top” is a bear trap

I wated to share some thoughts on the cable as it is in line with how I look for trade ideas and hopefully you might learn a thing or two from this article. Although I could be completely wrong about this, I have seen such setups many times to make me confident about what I …

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EUR/USD short squeeze imminent?

There hasn’t been much to get excited over in FX over the past couple of days, but with vaccine optimism still the more dominant theme, the US dollar continues to be sold. If the trend continues, the EUR/USD is a candidate to look for long opportunities on, given that most people are bearish on it …

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FTSE breaks out on impressive NFP beat

Following the publication of another impressive US jobs report, risk assets have extended their gains with European and US indices rising sharply. In case you haven’t seen the headlines, a good 4.8 million non-farm jobs were added in June with the unemployment rate falling to 11.1% from 13.3%. What’s more, the prior month saw an …

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EUR/USD in reversal as dollar comes back to life

Following Thursday’s big falls for equities (because of concerns over economic recovery and new infections), the dollar has come back to life on haven flows. With the dollar extending its gains this late in the day on Friday, it looks set to extend its advance against the likes of the euro and pound next week. …

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