AUD/USD - Bias = Bearish
Based on the daily chart, the general trend of the AUD/USD is still bearish; we have now broken out of the channel and aim to make new lows. This instrument will continue to be sold until something fundamentally and also technically changes. Any trade opportunities will be posted in the discord channel.
The Australian dollar jumped towards 0.7150 against the US dollar on Monday, recovering after a 1% fall on Friday that saw it dip close to 52-week lows. Currency markets calmed after a knee-jerk reaction in the previous session amid reports of a new and possibly vaccine-resistant COVID variant. Risks from the new variant also supported the Reserve Bank of Australia’s position to keep easy monetary settings, as policy outlook continued to diverge between Australia and the US. Recent hawkish signals from the Federal Reserve contrasted with repeated pushback from the RBA against expectations of higher interest rates. The Australian central bank reaffirmed in its latest minutes that it is prepared to be patient until wage and inflation targets are met, and that a 2024 rate hike is still its central case. - Trading Economics
EUR/USD - Bias = Bearish
On the daily chart of EUR/USD, we can see that the general trend is still bearish, and we plan to sell any rallies that may occur in this instrument.
The euro bounced back above $1.125 at the end of November, helped by a weaker US dollar and falling bond yields as investors fear that a new and possibly vaccine-resistant coronavirus variant could hurt the ongoing economic recovery. Still, the bloc's currency remained close to its weakest level since July 2020, amid concerns over potential new COVID restrictions across Europe and as investors see the US Federal Reserve tightening monetary policy faster than other major central banks. The minutes of the ECB and Fed policy meetings showed officials in Europe agreed the very generous monetary policy support to the economy would need to be reassessed at some point in the future and reiterated once again that the uptick in inflation was seen as temporary, while the US Federal Reserve signaled it was ready to raise interest rates if inflation continued to run high. - Trading Economics
GBP/USD - Bias = Bearish
Based on the daily chart, the overall trend of the GBP/USD remains bearish, which is likely to continue as we retest daily resistance.
Trade opportunities will only become available on the lower timeframes, plans will be shared on the Discord channel.
The British pound changed hands at $1.33 at the end of November, having touched its weakest level since December 2020, as investors rushed to safety amid panic over a new COVID-19 variant and as doubts arose on whether the Bank of England will raise interest rates at its December meeting. At the same time, the US dollar remained close to a 16-month high on rising expectations of rate rises next year in the US. Governor Andrew Bailey said on Thursday central banks took risks when they sought to provide guidance on what is likely to happen with rates, after being accused by some investors of sending a wrong signal about the likelihood of policy tightening earlier this month. He has also voiced concerns about the inflation outlook and the risks to growth, taking a more careful tone than previously - Trading Economics
NZD/USD - Bias = Bearish
On the daily chart, NZD/USD is still in a bearish trend, and we have broken out of the daily channel that offered no real support. Any pull back should present an opportunity to sell this currency as new lows are expected.
The New Zealand dollar stabilized above 0.6820 against the US dollar on Monday, after testing 52-week lows in the previous session on panic selling amid reports of a new and possibly vaccine-resistant COVID variant. The Kiwi has also been reeling from expectations of higher US interest rates amid recent hawkish signals from the Federal Reserve. The Reserve Bank of New Zealand meanwhile raised the Official Cash Rate by 25 basis points to 0.75%, in line with expectations but fell short of market speculations for a more aggressive 50 bps hike that analysts believed would be more supportive of the currency. RBNZ minutes also showed that policymakers considered a faster pace of hikes, but chose to be cautious given the continuing pandemic and the very high levels of household debt. Meanwhile, RBNZ chief economist Yuong Ha said on Monday that the new variant would need to have a dramatic economic impact to deter the central bank from further rate hikes. Trading Economics
USD/CAD - Bias = Bullish
On the daily chart, USD/CAD is still in a bullish trend, and we continue to trade in a bullish daily channel. Any pull back should present an opportunity to buy this currency as new highs are expected.
The Canadian dollar weakened to above 1.275 per USD at the end of November, close to levels not seen since late September, and tracking a general drop in oil and risk-sensitive currencies after a new coronavirus strain was discovered in South Africa, raising concerns of further global lockdowns and restrictions that would weigh on the economic recovery. The loonie has been losing against the greenback since the beginning of November, amid speculation the Fed might raise rates sooner and volatility in the oil market. Also, the recent floods in British Columbia will hurt the economic growth and boost inflation, but expectations for the timing of a Bank of Canada rate hike have not changed yet. In its last meeting, the central bank cut growth forecasts and said it could start hiking rates in the middle quarters of 2022 - Trading Economics
USD/CHF - Bias = Neutral
We are trading within this bullish channel on the daily chart, but with money pouring into the Swiss franc amid fears of the Corona virus variant, we are taking a neutral view on this instrument and will sit on the sidelines for the time being.
The Swiss franc rose to 0.924 per USD recovering from the 7-month low of 0.937 per USD touched on November 24th, as investors rushed to safety amid the discovery of the new Covid-19 variant. Investors anticipate the new variant may slow economic recovery, due to its high potential transmissibility while the vaccines’ effects are still unknown. Meanwhile, the Swiss franc continued to gain against the euro, surpassing 6-year highs, as investors see the currency as a safe haven investment amid market uncertainties from the continued pandemic struggles and inflationary pressure in the Euro Area.
USD/JPY - Bias = Neutral
We are trading within this bullish trend on the daily chart, but with money pouring into the Yen amid fears of the Corona virus variant, we are taking a neutral view on this instrument and will sit on the sidelines for the time being. We believe our main trading opportunities may come from buying yen against crosses.
The Japanese yen held onto gains below 114 per US dollar on Monday, after prime minister Fumio Kishida announced that Japan will suspend all new entries by foreign nationals starting Nov. 30 due to the Omicron variant. The Japanese currency previously jumped as much as 2%, being the biggest beneficiary of the flight to safety trade on Friday. The omicron strain, which the WHO labelled as a “variant of concern”, was first reported in South Africa and has since been found in the UK, Israel, Belgium, the Netherlands, Germany, Italy, Denmark, Australia and Hong Kong. Still, the yen remained close to multi-year lows amid widening policy divergence between Japan and the US, with the Federal Reserve signalling a hawkish pivot, while the Bank of Japan repeatedly stated its commitment to retain easy monetary policies to achieve its 2% price stability target