1. Forex Market Insight
The euro was down by 0.15% against the dollar at 1.1297 after German annual inflation slowed in December for the first time in six months, but remained well above the European Central Bank’s 2% target, according to preliminary data released Thursday, 6th January 2022.
(EUR/USD 1-hour chart)
Today, we will pay attention to the suppression strength of the 1.1338-line. If the euro runs steadily below the 1.1338-line, then we will pay attention to the support strength of the two positions below 1.1267 and 1.1250.
GBP Intraday Trend Analysis
The pound ended the day at 1.3532 against the dollar, down by 0.18% on the day. The pound hit a two-month high of 1.3598 on Wednesday, 5th January 2022 as rising British government bond yields supported the pound against the euro.
(GBP/USD 1-hour chart)
The pound is mainly focused on the 1.3574-line today. If the pound runs below the 1.3574-line, then pay attention to the support strength of the 1.3522 and 1.3450 positions. If the pound runs above the 1.3574-line, then pay attention to the suppression of the 1.3669-line.
2. Precious Metals Market Insight
Gold prices fell sharply yesterday, closing at a two-week low, weighed down by rising U.S. bond yields, after the Fed minutes hinted at faster rate hikes and hawkish speeches from Fed officials bolstered expectations.
Still, a new wave of epidemics has hit the service sector, an important pillar of the U.S. economy, and U.S. healthcare resources will be tested this winter, providing partial support for gold prices. The focus during the day will be on the December non-farm payrolls report, in addition to the speeches of Fed officials to focus on.
(Gold 1-hour chart)
Gold pays attention to the 1812-line today. If the gold price runs steadily below the 1812-line, then pay attention to the support strength of the two positions of 1784 and 1773. If the gold price breaks above the 1812-line, it will open up a further upward space. At that time, pay attention to the suppression of 1820.
3. Commodities Market Insight
WTI Crude Oil
Oil prices rose by more than 3% yesterday, with U.S. oil once breaking above the 80 mark during the day, peaking at $80.24/barrel, the highest since 8th November 2021.
Fueled by escalating tensions in Kazakhstan and cold weather in the U.S. disrupting crude deliveries, coupled with increased OPEC production or not enough to meet demand, it disappointed the market and helped oil price bulls.
(Crude oil 1-hour chart)
Oil prices focus on the 80-line today. If the oil price runs below the 80-line, then focus on the support strength of the 78.92 and 76.89 positions. If the oil price breaks above the 80-line, then pay attention to the suppression of the 81.07-line.
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