Wednesday’s moderate USD ADP release printing at 182k instilled some bullish momentum into the Dollar. Despite most of the economic data of this week from the US printing softly, dollar sensitivity which remains rife in the global currency markets, may continue to amplify any economic release from the States. As expectations mount on the possibility of a US rate hike in 2015, the USD may be open to extreme volatility with focus intensifying on the pending NFP on Friday. The Dollar Index remains technically bullish on the daily timeframe and this sharp change of sentiment towards the USD fused with the possibility that the Fed may hike rates before 2016, have opened doors for this index to trade back to the 100.00 resistance.
Gold bears take the front seat as this precious metal has declined for three consecutive days. Dollar appreciation mixed with investor anxiety on the prospects of a US rate hike has obstructed any opportunity Gold bulls have to bounce back. As this commodity becomes overwhelmingly bearish with prices showing no signs of recovery, its role as a safe haven investment slowly wanes. This yellow metal is technically bearish on the daily timeframe and there has been a daily close below the relevant 1120.0 support, as discussed in the market update. The first technical support is at 1100.0, but if the NFP release on Friday beats expectations then there may be a further decline to the next key support at 1080.0 before year end.
The fading expectations that demand for oil may increase have been translated to the end of the relief rally in WTI. Wednesday’s sharp decline may mark the start of something greater, as there are still ongoing concerns about global growth. WTI bulls will remain threatened as a mixture of oversupply and potential underdemand depress prices. This commodity is technically bearish and as long as the dominant theme of a reduction in demand remains present, prices may decline back down to the gravitational $44.0 support.
The GBPNZD is in the process of turning bullish on the daily timeframe. Prices are trading above the daily 20 SMA and the MACD is in the process of crossing to the upside. A breakout above the 2.3300 resistance may open a path to the next relevant resistance at 2.4000.
Silver is technically bearish on the daily timeframe. Prices are trading below the daily 20 SMA and the MACD has crossed to the downside. The next relevant support is based at 14.450.
The NZDUSD found a strong resistance at 0.6850. Prices are trading below the daily 20 SMA but the MACD still points to the upside. A breakdown below the 0.6500 support may open a path to the next relevant support at 0.6250.
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