News & Research

Japan rate decision: The Bank of Japan maintained its monetary policy in its December meeting amid modest pace of growth. The decision was in line with market forecast. The Bank also said it would continue to increase ETF purchases at an annual rate of ¥6 trillion. Consumer prices rose mildly in October for the first time in nine months, and core inflation stared another decline. Furthermore, exports declined slightly annually, indicating stronger economic activity across the globe. Canadian GDP data: Canada’s gross domestic product contracted unexpectedly in October by 0.3% amid a slowdown in production. Economists expected a small rise of 0.1%. Manufacturing fell 2%, the biggest decline since December 2013 indicating growth is sluggish. Durable and non-durable goods dropped 2.1% and 2% respectively. Poloz had hoped non-energy exports, including manufactured goods, would lead a recovery after the commodity crash of 2014. Services expanded 0.1% in October. Retail and wholesale trade increased 0.7% and 0.6% respectively. The Canadian economy is expected to grow by 0.3% in November. US CB Consumer Confidence: Consumer moral jumped in December to the highest level since August 2001 as Americans were more confident about the outlook. Confidence rose to113.7 following a revised 109.4 in November. The reading was better than anticipated as the measure of consumer expectations for the next six months edged up to 105.5, the highest since December 2003, from 94.4. Present conditions index declined to 126.1 from 132. Americans have high hopes for Trump administration to lead the US economy to fresh highs. A score of 112.6 is on the cards now.

Important events on related currencies:

JPY
BOJ Press Conference
EUR
ECB President Draghi Speaks
CAD
GDP m/m
BOC Gov Poloz Speaks
CNY
Manufacturing PMI
USD
CB Consumer Confidence
NZD
Employment Change q/q
Unemployment Rate
Your capital is at risk!

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• EURUSD

As could be seen on the H1 chart that the pair is on its way to reach the level of 1.0740 then a pullback is expected if the pair shows some negative factors. Our first target could be 1.0700 followed by 1.0650 during the day. On the other hand, breaching the level of 1.0740 opens the door for the pair to reach the level of 1.0765.

Resistance levels:	Support levels:	Recommended:
▪ 1.0740 ▪ 1.0765 ▪ --	▪ 1.0650 ▪-- ▪ --	We remain bearish as long as the pair is traded below the level of 1.740. Your capital is at risk!

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• GBPUSD

The pair is traded above a strong support level around 1.2400 so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1.2465 during the day. On the other hand, breaching the level of 1.2400 opens the door for the pair to reach the level of 1.2300 during the day.

Resistance levels:	Support levels:	Recommended:
▪ 1.2465 ▪ 1.2500 ▪ --	▪ 1.2400 ▪ 1.2300 ▪ --	We remain bullish as long as the pair is traded above the level of 1.2400 Your capital is at risk!

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• GOLD

The gold is traded right below a strong resistance level around 1202 so as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1195 followed during the day. On the other hand, breaching the level of 1202 opens the door for the pair to reach the level of 1207 during the day.

Resistance levels:	Support levels:	Recommended:
▪ 1202 ▪ 1207 ▪ 1210	▪ 1195 ▪ -- ▪ --	We remain bearish as long as the pair is traded below the level of 1202. Your capital is at risk!

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• AUDUSD

The pair may continue going up to reach the level of 0.7595 to 0.7600 during the day. In case it shows some negative factors, we may go short targeting the level of 0.7500 during the day. On the other hand, breaching the level of 0.7600 opens the door for further upward movement during the day.

Resistance levels:	Support levels:	Recommended:
▪ 0.7630 ▪0.7650 ▪0.7585	▪ 0.7500 ▪ -- ▪ --	We remain bearish as long as the pair is traded below the level of 0.7600 Your capital is at risk!

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• GBPJPY

The pair may continue going down to reach the level of 140.70 during the day. Then a pullback is expected that it may rebound to reach the level of 141 followed by 142 during the day. Breaching the level of 140.70 opens the door for further downward movement.

Resistance levels:	Support levels:	Recommended:
▪ 143.75 ▪ 145 ▪ --	▪ 143 ▪ -- ▪ --	We remain bearish as long as the pair is traded below the level of 143.75 Your capital is at risk!