The equities markets are still struggling amid Chinese woes and oil free falling
With no realized bottom to reach yet, the oil prices have continued its free falling for another day to find WTI trading now below $31 per barrel, after another extension to the downside below last Wednesday low.
The US Blue chips ended their first session of the week in a mixed way, after struggling to rebound following another dovish closing of the Chinese major stocks indexes.
Shanghai composite is still fighting now to have a place above 3000 psychological level, after breaking yesterday 3100 supporting level which could hold last week, while Nikkei 225 losses today exceeded 350 points, after closing yesterday on official vacation.
With Nikkei 225 falling, USDJPY came again under pressure to be trading near 117.50 during the Asian session, after rebounding to 118 level from 116.67 which has been reached in the first beginning hour of the new week undermined by retreating of the risk appetite.
While the Japanese trade balance of November came to show ¥271.5B deficit, after ¥200.2B surplus in October, with current account surplus in November by ¥1,143.5B, while the market was waiting for ¥858.5B, after ¥1,458.4B in October.
Instrument in Focus: EURUSD
After finding support at 1.0709, EURUSD could extend its rebound to reach yesterday 1.0968 but it faced difficulty to rise higher, after Jan EU Sentix investor confidence came to show slide to 9.6, while the consensus was referring to declining to 12.2 only, after reaching 15.7 in December.
The pair came down for trading again near 1.0875 but it is still maintaining a place above its daily SMA50 with continued existence below its daily SMA100 and daily MA200.
Despite the rebound to 1.0968, the pair daily Parabolic SAR (step 0.02, maximum 0.2) kept existence above the trading rate to read today 1.0968 in its eighth consecutive day of being above the trading rate, while the pair daily RSI is showing existence in the middle of the neutral are reading 50.182.
Important levels: Daily MA50 @ 1.0817, Daily MA100 @ 1.1018 and Daily MA200 @ 1.1044
S&R:
- S1: 1.0709
- S2: 1.0519
- S3: 1.0461
- R1: 1.0991
- R2: 1.1058
- R3: 1.1093
EURUSD Daily Chart:
Commodities: Silver
Silver faced difficulty last week to rise above its resisting level at $14.39 which has been formed on last Dec. 28 to be satisfied by reaching $14.35 last Thursday, before retreating again for trading now $13.85 having its daily Parabolic SAR (step 0.02, maximum 0.2) above it for the second consecutive day reading $14.37, after failing to keep a place above its daily SMA50.
The Silver daily Stochastic Oscillator (5, 3, 3) which is sensitive to the volatility is having now its main line in the oversold area below 20 reading 12.730, while its signal line is still in the neutral region reading 35.175.
Important levels: Daily MA50 @ $14.19, Daily MA100 @ $14.66 and Daily MA200 @ $15.27
S&R:
- S1: $13.61
- S2: $12.34
- S3: $11.72
- R1: $14.39
- R2: $14.61
- R3: $15.04
XAGUSD Daily chart:
Hot instrument: GBPUSD
Following forming a series of lower highs and also lower lows, GBPUSD could have extended downside wave from 1.5238 which capped its rebound on last Dec. 11 to break its major supporting level at 1.4564 which could hold since last Apr. 13 last week.
The cable has fallen yesterday to 1.4492 which is its lowest reached level since June 2010 and despite rebounding for trading near 1.4525, its daily Stochastic Oscillator (5, 3, 3) which is sensitive to the volatility is still having now its main line is in oversold area below 20 reading 13.625 and also its signal line which is reading 15.403 in its day number 19 of existence below its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today 1.4696
Important levels: Daily SMA50 @ 1.5007, Daily SMA100 @ 1.5172 and Daily SMA200 @ 1.5314
S&R:
- S1: 1.4492
- S2: 1.4345
- S3: 1.4228
- R1: 1.4643
- R2: 1.4723
- R3: 1.4845
GBPUSD Daily chart:
