Ichimoku Kinko Hyo CNH/JPY: The CNH/JPY pair is trading above the Kumo…
USD: trading it short-term
Information is not investment advice
EUR/USD: back into the channel
This currency pair is definitely going through fierce fluctuation. The recent rise to 1.19 followed by a plunge to 1.18 and correction confirms that. Now, EUR/USD is back at 1.1850 – that’s the downside of the core channel it’s been going through. That means it makes sense to expect it to gradually move to the upside closer to 1.19 – step in!
GBP/USD: marching upwards
Hopes of having Brexit sealed this week are pushing the GBP. This currency pair has moved from 1.3210 to 1.34 in the recent spectacular upswing. Undoing this overheated gain, GBP/USD got back down to 1.33 to start climbing again. It’s only rational to prepare for another gradual uptrend to 1.34. Welcome aboard!
AUD/USD: rolling waves
The resistance range of 0.7330-0.7335 seems to be impregnable for AUD/USD so far. The currency pair touched it several times in November bouncing downwards – just as it did this Monday already. Expect this resistance to be reached in the short-term and possibly reverse the currency pair downwards yet again.
USD/CAD: firm support
After the first week of November, 1.3040 has been preventing USD/CAD from dropping below. We can see it bounce upwards several times on the hourly chart below. Possibly, this is another reversal we are observing right now. This makes it potentially an ideal opportunity to use the situation in the short-term. Watch it get back up to 1.31!
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates? Recall that the Federal Open Market Committee had previously ended the year 2022 with a 50bps hike, and an indication from Powell, the committee chairman, that the Fed could consider raising interest rates by 75bps in the course of the year 2023.
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
Last year was tough for the Japanese yen. USDJPY gained more than 30% over 2022, striking above 150 in October. While anticipation of slower Fed rate hikes pulled the pair below the 130 level at the start of 2023, the speculations over the destiny of BOJ’s yield control policy grabbed the attention of the Japanese assets in the middle of January. What lies ahead for traders of the Japanese yen?