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WTI climbs to multi-day highs beyond $53.00
WTI climbs to multi-day highs beyond $53.00

WTI climbs to multi-day highs beyond $53.00

108209   January 28, 2021 22:56   FXStreet   Market News  

  • Prices of the barrel of WTI surpass the $53.00 mark.
  • The now softer tone in the dollar sustains the upside in the commodity.
  • The US economy expanded 4.0% QoQ during the October-December period.

Prices of the West Texas Intermediate navigate the area of multi-day highs past the $53.00 mark per barrel so far on Thursday.

WTI stays capped by $54.00

The barrel of the American reference for the sweet light crude oil regains upside traction in the second half of the week and manages to break above the $53.00 mark to clinch new 6-day highs.

The renewed selling pressure hitting the dollar gives extra legs to the rebound in crude oil prices, which have now shifted the attention to the key resistance region around the $54.00 yardstick.

The upside in WTI also offsets traders’ concerns regarding the larger-than-expected weekly build in US crude oil supplies, as reported by the EIA on Wednesday.

What to look for around WTI

Prices of the American reference for the sweet light crude oil are seen some correction from peaks near $54.00. Past news regarding Saudi Arabia (unilateral oil output cut), the decision of the OPEC+ to refrain from increasing oil production and further US fiscal stimulus already anticipated by traders collaborated with the upbeat mood surrounding the commodity, particularly in the first half of the new year. However, the relentless increase of coronavirus cases amidst the vaccine rollout coupled with fresh lockdown measures mainly in China and Europe keeps traders somewhat worried and recovery prospects tempered.

WTI significant levels

At the moment the barrel of WTI is gaining 1.37% at $53.33 and faces the next hurdle at $53.90 (2021 high Jan.13) seconded by $54.45 (monthly high Feb.20) and finally $59.61 (high Jan.20 2020). On the other hand, a breach of $47.20 (2021 low Jan.4) would expose $46.18 (low Dec.23) ahead of $43.94 (monthly low Dec.2).

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S&P 500 Index opens sharply higher following Wednesday’s slump

S&P 500 Index opens sharply higher following Wednesday’s slump

108207   January 28, 2021 22:51   FXStreet   Market News  

  • Wall Street’s main indexes trade in the positive territory.
  • Major brokers restrict trading in volatile stocks on Thursday.
  • Upbeat US data seems to be helping market sentiment improve.

Major equity indexes in the US started the day decisively higher after suffering heavy losses on Wednesday. Upbeat macroeconomic data releases from the US and brokers’ decision to restrict trading in highly speculative and volatile stocks allowed risk flows to dominate the markets on Thursday. At the moment, the CBOE Volatility Index (VIX), Wall Street’s fear gauge, is down 18.8% on a daily basis.

As of writing, the Dow Jones Industrial Average was up 0.7% on the day at 30,516, the S&P 500 was rising 0.66% at 3,775 and the Nasdaq Composite was gaining 0.32% at 13,152.

Earlier in the day, Robinhood and Interactive Brokers both announced that they will be raising margin requirements for certain stocks, including GME, AMC, EXPR and BB, while restricting trading in those stocks to the position closing only.

Meanwhile, the data published by the US Bureau of Economic Analysis revealed that the Real Gross Domestic Product (GDP) in the fourth quarter grew 4% as expected. Additionally, the US Department of Labor reported that Initial Jobless Claims declined by 67,000 to 847,000 last week. 

Among the 11 major S&P 500 sectors, the Energy Index is up 2.15% as the biggest percentage gainer after the opening bell. On the other hand, the Consumer Discretionary Index is the only major sector in the negative territory, losing 0.15%.

S&P 500 chart (daily)

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US stocks open strongly as the meme stock trade reverses

US stocks open strongly as the meme stock trade reverses

108205   January 28, 2021 22:45   Forexlive Latest News   Market News  

Shorts with nothing to fear now

The meme stock screwjob has made people jump back into the ‘normal’ buy-the-dips trade and the S&P 500 is up 31 points to 3781 at the open.

It’s a long way to cover yesterday’s 100 point gain but it’s a good start:

Shorts with nothing to fear now

For bank trade ideas, check out eFX Plus

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EUR/USD Price Analysis: Decent support emerges at 1.2060/50

EUR/USD Price Analysis: Decent support emerges at 1.2060/50

108203   January 28, 2021 22:33   FXStreet   Market News  

  • EUR/USD reverses the initial pessimism and regains 1.21 and above.
  • Interim resistance is located at the Fibo level at 1.2173.

EUR/USD leaves behind the initial weakness and manages to advance past the 1.2100 mark on Thursday.

Immediately to the upside aligns the key resistance zone around 1.2180/90, where converges the 21-day SMA, a Fibo retracement of the November-January rally and weekly highs. A surpass of this region on a sustainable fashion is need to allow for a move to the 2021 tops near 1.2350 (January 6).

On the broader picture, the constructive stance in EUR/USD remains unchanged while above the critical 200-day SMA, today at 1.1652.

Looking at the monthly chart, the (solid) breakout of the 2008-2020 line is a big bullish event and should underpin the continuation of the current trend in the longer run.

EUR/USD daily chart

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Robinhood goes to ‘sell only’ on GME and AMC as meme stocks get kneecapped by brokers

Robinhood goes to ‘sell only’ on GME and AMC as meme stocks get kneecapped by brokers

108199   January 28, 2021 22:26   Forexlive Latest News   Market News  

Robinhood kneecaps the high-flying stocks

Robinhood kneecaps the high-flying stocks

Robinhood users are reporting that the brokerage is sending messages that users are no longer allowed to buy shares of GameStop and AMC Entertainment. People who have them are allowed to sell.

Naturally — knowing there are no buyers — people are dumping the shares. GME is down to $295 from a pre-market high of $513.

Robinhood

There’s also talk that some other high-flyers have been pulled.

This is a real screwjob and is likely behind some of this turn in sentiment.

Interactive Brokers has put some options into liquidation-only mode and raised margin requirements.

Interactive Brokers

For bank trade ideas, check out eFX Plus

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AUD/USD rebounds to 0.7650 on renewed USD weakness
AUD/USD rebounds to 0.7650 on renewed USD weakness

AUD/USD rebounds to 0.7650 on renewed USD weakness

108198   January 28, 2021 22:26   FXStreet   Market News  

  • AUD/USD stages a decisive recovery in early American session.
  • US Dollar Index retreats to 90.50 area after US data.
  • Wall Street’s main indexes look to open higher.

After slumping to its lowest level in nearly a month at 0.7592 during the European trading hours on Thursday, the AUD/USD pair staged a U-turn in the early American session and erased a large portion of its daily losses. As of writing, the pair was still down 0.28% on the day at 0.7642.

Risk flows return after upbeat US data

A positive shift witnessed in market sentiment seems to be providing a boost to AUD/USD by weighing on the greenback. 

The data published by the US Bureau of Economic Analysis showed on Thursday that the economic activity in the US expanded by 4% on a yearly basis in the fourth quarter as expected. Additionally, the Department of Labor reported that Initial Jobless Claims declined by 67,000 to 847,000 last week. 

Finally, the US Census Bureau’s monthly publication revealed that the trade deficit narrowed by $3 billion to $82.5 billion.

Reflecting the improving market sentiment, S&P 500 Futures gained traction and was last seen gaining 0.65%. Meanwhile, the US Dollar Index, which touched a daily high of 90.86, is posting small losses at 90.57.

Later in the session, New Home Sales data will be featured in the US economic docket. On Friday, Private Sector Credit and Producer Price Index data from Australia will be looked upon for fresh catalysts. 

Technical levels to watch for

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Gold Price Analysis: XAU/USD rallies to test descending trend-line hurdle, around $1860 level

Gold Price Analysis: XAU/USD rallies to test descending trend-line hurdle, around $1860 level

108196   January 28, 2021 22:26   FXStreet   Market News  

  • Gold caught some aggressive bids in the last hour and rallied to fresh session tops.
  • Mixed oscillators warrant some caution before placing any aggressive bullish bets.

Gold witnessed a dramatic turnaround during the early North American session and rallied over $20 in the last hour. The commodity jumped to fresh daily tops, around the $1860 region, with bulls now looking to build on the momentum beyond a one-week-old descending trend-line resistance.

The emergence of some heavy selling around the US dollar was seen as one of the key factors that prompted some short-covering around the dollar-denominated commodity. That said, a dramatic positive turnaround in the equity markets could cap any further gains for the safe-haven XAU/USD.

Moreover, neutral oscillators on the daily chart and slightly overbought RSI on the 1-hourly chart further warrant some caution for aggressive bullish traders. This makes it prudent to wait for some strong follow-through buying before positioning for any further appreciating move.

Hence, any subsequent positive move is likely to confront stiff resistance near weekly tops, around the $1868-70 supply zone. A sustained move beyond will be seen as a fresh trigger for bullish traders and assist the XAU/USD to reclaim the $1900 mark for the first time since January 8.

On the flip side, the $1848-47 region now seems to protect the immediate downside. This is closely followed by support near the $1840 area and weekly swing lows, around the $1830 region. Failure to defend the mentioned levels might turn the XAU/USD vulnerable to slide further.

The downward trajectory might then drag the yellow metal back towards challenging monthly lows, around the $1800 mark touched last week.

XAU/USD 4-hourly chart

fxsorigina

Technical levels to watch

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The market sands shift quickly as GME turns negative and dollar falls
The market sands shift quickly as GME turns negative and dollar falls

The market sands shift quickly as GME turns negative and dollar falls

108195   January 28, 2021 22:17   Forexlive Latest News   Market News  

Big shift in sentiment

Robinhood has taken some actions to limit new positions in GME options and that might have been the latest trigger for these market moves. There’s also talk that they’re limiting GME trading in general.

GME shares hit $513 premarket but just fell to $250 a short time ago in a swift move. The closed yesterday at $347 and are at $300 as of writing.

Even the bond market is now on the move with 10-year Treasury yields up 2.7 bps to 1.04%.

This is such an off-balance market. You can barely stake a claim into any kind of move and momentum is everything.

Beyond these latest moves, the greatest trade in the last 12 years has been to buy the dip and some of that is going on here.

For bank trade ideas, check out eFX Plus

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United States Goods Trade Balance rose from previous $-86.4B to $-82.47B in December
United States Goods Trade Balance rose from previous $-86.4B to $-82.47B in December

United States Goods Trade Balance rose from previous $-86.4B to $-82.47B in December

108194   January 28, 2021 22:12   FXStreet   Market News  

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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

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Canada Building Permits (MoM) came in at -4.1%, above forecasts (-5%) in December
Canada Building Permits (MoM) came in at -4.1%, above forecasts (-5%) in December

Canada Building Permits (MoM) came in at -4.1%, above forecasts (-5%) in December

108193   January 28, 2021 22:12   FXStreet   Market News  

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

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US Dollar Index Price Analysis: Rising bets for a move above 91.00

US Dollar Index Price Analysis: Rising bets for a move above 91.00

108191   January 28, 2021 22:09   FXStreet   Market News  

  • DXY adds to the uptrend and trades closer to 91.00.
  • The 2020-2021 resistance line also sits near 91.00.

DXY picks up extra pace and approaches the key hurdle in the 91.00 neighbourhood in the second half of the week.

The 91.00 area emerges as the immediate target of significance. In this area coincides weekly tops (December 21), the so far 2021 high (January 18) and the 2021 resistance line. The 55-day SMA, today ay 90.78, reinforces this resistance. Above this region, the selling pressure is forecast to mitigate somewhat.

The ongoing rebound is seen as corrective only and in the longer run, as long as DXY trades below the 200-day SMA, today at 94.08, the negative view is expected to persist.

DXY daily chart

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United States Initial Jobless Claims 4-week average up to 868K in January 22 from previous 848K
United States Initial Jobless Claims 4-week average up to 868K in January 22 from previous 848K

United States Initial Jobless Claims 4-week average up to 868K in January 22 from previous 848K

108190   January 28, 2021 22:09   FXStreet   Market News  

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

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