1. Forex Market Insight
The euro closed higher against the dollar for the second week in a row, rising by 0.51% to 1.1376 in the final trading, hitting a new high since 15th November to 1.1386.
Investors will next be watching the pace of the European Central Bank’s withdrawal from the stimulus measures during the pandemic, arguing that the ECB will be less hawkish than the Federal Reserve.
The ECB insists that prices are pushed up by temporary factors such as supply shortages, rising energy prices and base effects. The ECB expects that once the impact of the global supply-demand imbalance subsides, the problem of inflation will also be reduced.
(EUR/USD 1-hour chart)
Today, pay attention to the suppression of the 1.1378-line. If the euro runs stably below the 1.1378-line, then pay attention to the support at 1.1338 and 1.1267 below. If the euro breaks through the 1.1378-line, then pay attention to the suppression at 1.1401 and 1.1421.
GBP Intraday Trend Analysis
The pound also posted its second straight weekly positive against the dollar, ending by 0.85% higher at 1.3523 and hitting a new high since 10th November 2021 at 1.3550.
Meanwhile, no new outbreak restrictions have been introduced in England until the end of 2021, and the government is now waiting for more evidence on whether the health service system can cope with high infection rates.
(GBP/USD 1-hour chart)
The pound today is mainly focused on the 1.3522-line. If the pound runs below the 1.3522-line, then pay attention to the support at 1.3450 and 1.3409. If the pound runs above the 1.3522-line, then pay attention to the suppression at the 1.3574-line.
2. Precious Metals Market Insight
Spot gold advanced for a third straight week, closing up by 1.53% to $1,829.42 per ounce and hitting a new high since 22nd November 2021 to $1,830.33 per ounce as the dollar index closed lower for a second straight week, refreshing the month’s low to 95.568.
A surge in cases of the omicron variant sparked investor anxiety. But gold prices posted their worst annual performance in six years, falling more than 3.5%, as the global economy generally recovered from the impact of the outbreak and demand for safe-haven gold diminished.
(Gold 1-hour chart)
Today, gold pays attention to the 1831-line. If the price of gold runs stably below the 1831-line, then pay attention to the support of the 1819 and 1812 positions. If the price of gold breaks through the 1831-line, it will open up further upward space. At that time, pay attention to the suppression of 1844.
3. Commodities Market Insight
WTI Crude Oil
On Friday, Brent oil futures fell by $1.75 to settle at $77.78 per barrel. The cumulative gains of 50.5% in 2021 were the largest since 2016.
On the other hand, the introduction of the vaccine accelerated the economic restart and stimulated global consumption, while production was affected. Even if the global Covid-19 cases reach a record high, oil prices will still perform outstandingly in 2021.
(Crude oil 1-hour chart)
Today, oil prices are paying attention to the 76.89-line. If the oil price runs below the 76.89-line, then it will still pay attention to the support at the 75.04 and 73.52 positions. If the oil price breaks through the 76.89-line, then pay attention to the suppression of the 78.92-line.
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