Daily Market Analysis

The US dollar had a strong week versus the Japanese yen. USD/JPY opened with a gap down on the W1, but is now trading above the highs of the previous week.

The advance of gold (XAU/USD) this week has been too rapid. The precious metal got overbought.

If you look on the weekly chart of GBP/JPY. You will see that the pair has ran into resistance of the 200- and 100-week MAs.

On the H1, you can see that EUR/USD formed an inverted “Head and Shoulders” pattern.

Market sentiment has worsened on the news about the conflict between the United States and Iran. One of the ways to trade in this environment is to sell NZD/USD.

NZD/USD has been performing really well since the start of December as it managed to break above the line connecting 2018 and 2019 highs.

Currently EUR/NZD found some support around 1.6780 (78.6% of the July-October advance). The return to the 1.6825/60 area will likely provide selling opportunities.

Last week EUR/USD met resistance of the descending 50-week MA (currently at 1.1188).

GBP/JPY is correcting down after the excessive advance that it made on the news that Boris Johnson’s Conservative Party has won the UK election.

CNY/JPY is a good proxy for traders’ optimism. The technical setup for it is also quite interesting.

USD/CHF continues its December descent. The pair’s attempt to return above the 0.9845 area has failed.

NZD/USD met resistance around 0.6565 (61.8% Fibonacci of the July-October decline, top of the October-December bullish channel).