Daily Market Review January 13



Gold prices turned a little bearish, after reports showed that, China’s trade data for December came in surprisingly positive. Exports hit a slight hike of 1.4 percent, reporting the first gain in six months, following the continuous slump of the world’s second largest economy. However, imports fell by 7.6 percent, signaling a yet to be tackled staggering Chinese economy. On the Comex division of New York Mercantile Exchange, gold for February delivery slumped by 0.07 percent to settle at $1,084.40 a troy ounce. On the other hand, a huge dip in oil prices sends rippled effects on the whole trading market.

The slide of crude prices below $30 a barrel, first time in 12 years will now seriously endanger the existence of U.S. shale industries. Major oil companies retain their positions on the market, such as the OPEC, adding more strain to prices and eventually causing a high supply and low demand. Crude prices will continue to trade around or even below $30 a barrel. Traders should get ready for a superb bearish slide of prices. On the other hand, indices on major markets, revolve around a somewhat low session, urging traders for PUT options.

The Shanghai Composite Index .SSEC was weaker in the morning session, while the CSI300 was up by merely 0.2 percent. However, on the Wall Street, U.S. stocks edged higher, posting biggest gains for this year, translating into Indices’ surge on the charts. The Dow Jones Industrial Average closed at 16516.22 points, after adding 117.65 points, while NASDAQ advanced by 1 percent. Major indices will continue to swing between gains and losses for the coming days, while the little hike is deemed temporary. Energy shares will remain weak, while technology and pharmaceutical shares, may rise more.

Technical Analysis:
The EURUSD pair consolidates ahead of the release of the industrial production data and nay bounce higher, if figures are positive. The line 1.0800 is the main trigger on this chart, which will determine the uptrend or downtrend of the pair. The Ichimoku cloud hovers above the candles, which signals towards a bearish session for the day. A slow and steady session was noticed for the pair since yesterday, with the EURUSD pair seen initiating the session around the 1.085 level and climbed to the 1.089 level temporarily. Afterwards, the pair was dragged lower to the 1.082 level, close the support line of 1.0800 level. Currently, the pair hovers around the 1.083 level, while the Ichimoku cloud shows no changes for today, as no intersection of the lines can be seen. Thus, verify data release for Eurozone today, to trade safely.
Old support line for the pair USDJPY lurks around, as the pair edges down to bounce back, but unfortunately remains in a consolidated mode. The pair USDJPY tried to bounce higher earlier today, while investors await for the USD to finally rise above these continuous bearish sessions. Yesterday, the pair initiated the session around the 117.6 level and was shortly dragged down to the 117.3 level, within the first few hours. After trying to gap higher to the 117.9 level, the pair was pulled down to close the session around the 117.8 level. This pair will keep on getting closer to the support line, so as to find some momentum. Lack of fundamentals, plays the spoilsport here, therefore verification of market trends is a must to trade safely here.

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No fundamental and no economic release can come to the rescue of the GBPUSD pair. Britain likelihood of dropping out of the European Union is causing mixed sentiment, with repercussions seen on the FTSE 100, while the GBP remains inert most of the time against the greenback. The news is quite strong and has kept the GBP in lower range versus the dollar, as the FTSE 100 is also seen slowing. The pair GBPUSD commenced the session around the 1.454 level and consolidated before being dragged further down to the 1.436 level. After trying to bounce higher at the 1.443 level by the end of the session, the pair is now trending towards a yet another bearish session. Traders are advised to verify fundamental changes before trading on this pair.

 

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