Market Focus

The broad U.S. equity markets closed lower on the last trading day of 2021. The Dow Jones Industrial Average dropped 0.16%, the S&P 500 lost 0..26%, while the Nasdaq lost 0.61%; despite losing ground on the last trading day, all three major indices ended the year with tremendous gains since the beginning of 2021—18.73%, 26.89%, and 21.39%, respectively.

It remains to be seen if equity markets will perform as well as 2021 in 2022. Several challenges are already present. The planned rate hikes by the Federal Reserve will present tremendous pressure on the technology sector, while supply chain issues remain largely unsolved. On the bright side, multiple sources are projecting that COVID-19 will finally end in 2022 as the virus enters its final stage of mutation and begin to exhibit symptoms that are less life threatening and more in line with the flu.

Main Pairs Movement:

On Friday, the Greenback lost steam as U.S. equity markets retreated. The Dollar Index dropped 0.34%, against a basket of major currencies. As 2022 marks its arrival, so do rate hikes. The Federal Reserves’ plan of raising the Federal Funds Rate 3 times over the course of 2022 should see the Greenback more desirable over other major currencies.

Cable experienced strong growth heading into 2022. The pair gained for the entire last week of 2021, and closed the year losing 1.08%. Falling U.S. treasury yields assisted the Sterling in gaining ground over the last month of 2021.

The Eurodollar closed the year losing 0.03%. The ECB’s dovish attitude and its unwillingness to increase interest rates will present Euro with tremendous challenges as we head into a rate increase environment.

Gold ended the last month of 2021 with a 3.08% gain as market participants fear over the increased spread of the Omicron variant. 2022 could potentially mark the end to the pandemic and bring plentiful price action for the previous metal.

Technical Analysis:

GBPUSD (Daily Chart)

GBPUSD now trades firmly above the previous resistance level 1.3500 where it struggles to cling on with several attempts. However, the greenback seems to regain some demands at the last hours of the year as the Omicron fears bring investors back to embrace the safe haven, and the looming Brexit import controls add more pressure onto the sterling.

On the technical front, we could see the 1.3500 resistance/support has been the turning point for Cable for many times, and this time is no exception. The RSI indicator is approaching the overbought level, suggesting a correction might happen in some near futures; however, the price action is back to above the 20 and 50 DMA, encouraging the bulls to keep pushing the pair north. The consolidation of the pair is expected to end at the start of the new year as the major investors come back from their holiday.

Resistance: 1.3570, 1.3670

Support: 1.3400, 1.3180

EURUSD (Daily Chart)

EURUSD regains some of its losses from Thursday but remains liveless throughout the day amid a lack of major data or events and mixed catalysts as traders brace for 2022. Major Asia-Pacific markets are off while some in Europe will also cheer New Year’s Eve, contributing to the inactive day. That said, the recent consolidation in EURUSD could be linked to the US dollar’s mixed performance and an absence of major bond traders.

As to the technical indicators, both RSI and MACD of EURUSD seem in a healthy spot right now. The price action remains above the 20-DMA, suggesting a relatively optimistic outlook in the short term.

Resistance: 1.1400, 1.1620, 1.1700

Support: 1.1200, 1.1000, 1.0780

XAUUSD (Daily Chart)

Gold is set to end the year on a good note as it rises over 0.80% amid the two-day trading session. After the release of U.S. initial job claims figures on Thursday, gold initially dropped but quickly gained ground as investors’ fear over Omicron resurfaced. Risk off sentiment also spilled over into equity markets as the Dow Jones snapped its 6^th straight winning session on Thursday and keeps falling amid Friday’s Wall Street trading.

On the technical side, gold seems to have broken out of the downward trend it displayed recently, but it remains to be seen if the yellow metal would be able to return to previous highs. RSI for the pair has risen to 62.11 as of writing. Gold is trading above its 20, 50, and 200 DMA.

Resistance: 1830, 1860, 1900

Support: 1765, 1725, 1680

Economic Data:

Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ” .

Please note the specific adjustments as follows:

Note: The above data is for reference only, the actual execution data may be changed, please refer to the MT4/MT5 software for details.

If you’d like more information, please don’t hesitate to contact [email protected].

Market Focus

US stock advanced on Thursday amid risk-on market sentiment, closing at all-time high and rose for a third day as investors considered that the economic recovery can resist the impact of the Omicron coronavirus variant. On Thursday, Merck & Co.’s Covid-19 pill was cleared by US regulators, giving high-risk patients another option for emergency use. Early trials also suggest that Merck’s molnupiravir could reduce mortality and hospitalisation rates in at-home patients by as much as 50%. In fact, people infected with Omicron are 50% to 70% less likely than those with Delta to be admitted to hospitals. Therefore, the positive news about Omicron variant and the announcement of the Merck & Co. approval both acted as a tailwind for the stock market. On top of that, the above news has also eased pressure on European authorities to lockdown their economies in order to curb epidemic transmission.

The benchmarks, S&P 500, Nasdaq 100 and the Dow Jones Industrial Average both rose on Thursday as risk appetite in US equities market has been boosted due to the news of the recent approval of two at-home Covid-19 treatment pills. Trading volume was low ahead of the Christmas holidays. S&P 500 was up 0.6% on a daily basis and the Dow Jones Industrial Average also advanced with a 0.5% gain for the day. Nine out of eleven sectors stayed in positive territory as the consumer discreet and industrials sectors are the best performing among all groups, rising 1.24% and 1.16%, respectively. The Nasdaq 100 climbed the most with 0.8% gain on Thursday and the MSCI World index rose 0.8%. The S&P 500 CBOE volatility index fell another half a point and trades at monthly lows close to 18.00 level.

Main Pairs Movement:

The US dollar declined on Thursday, staying in negative territory for the fourth consecutive day amid risk-on market mood despite rising US bond yields. The DXY index reached a daily top in late European session, then pulled back to near 96.00 level while surrendered most of its intraday’s gains. The US Food and Drug Administration announced that it had approved a second Covid-19 treatment pill for at-home use, which helped stoke risk appetite on Thursday and weighed on the safe-haven greenback. On economic data’s front, US consumer sentiment increased in December and new homes sales also climbed to a seven-month high.

GBP/USD advanced 0.43% on Thursday amid bearish momentum witnessed in US dollar across the board. The news that the UK was unlikely to implement tougher Covid-19 curbs after Christmas had lend support to the British pounds. The cable touched a daily high above 1.343 level in early American session, now trading at 1.3409 at the time of writing. Meanwhile, EUR/USD dropped to a daily low under 1.130 level but then rebounded modestly to offset some of its intraday’s losses. The pair was down 0.02% for the day.

Gold advanced and touched a daily top above $1810 during American session, as the broad US dollar weakness continued to pushed the precious metal higher. Meanwhile, WTI oil surged almost 1.0% for the day amid optimism that the hit to oil’s demand from Omicron won’t be as bad as initially feared.

Technical Analysis:

XAUUSD (4- Hour Chart)

The precious metal, gold, steadily trades above 1800, trading at 1809 as the time of writing. Gold looks to head toward the immediate hurdle at 1815, retest its monthly high on the 4- hour chart. The resistance at 1815 is consider as a strong static barrier as gold attempts it three times within 2 months, but it ends up failing to break through. Thus, a break though the level would likely signal a firmer upward momentum. However, it would be difficult as the RSI has almost reached the overbought readings. On the downside, if gold falls below 1800, then it will turn to neutral mode from bullish mode. Overall, the risk is skewed to the upside as long as gold can hold above 1800.

Resistance: 1815, 1829, 1848

Support: 1800, 1782, 1770, 1765, 1753.

NASDAQ 100 ( Daily Chart)

The major indices, including Nasdaq 100, rose for a third successive day as the markets less fear the Omicron and celebrate for Christmas. From the technical aspect, a three consecutive day upside momentum has brought Nasdaq 100 back to a bullish stance on the daily chart as it trades above all 5, 10, 20, 60 SMAs, suggesting a bullish trend. Nasdaq 100 has overall reclaim strength as the MACD is turning from negative to positive while the RSI is still far away from the overbought territory, entailing that buyers are in control. Most importantly, the double bottom pattern has been formed, which implies that sellers have given up and they are unable to push price downward. Consequently, the formation of the double bottom signifies a potential bullish reversal signal, heading to the next resistance at 16457, followed by the peak, 16796.

Resistance: 16457

Support: 15551, 14464. 14047

EURUSD (4- Hour Chart)

EURUSD remains under modest price action, slightly turning upside after the US Core PCE Inflation jumped to 4.7% in November. From the technical perspective, EURUSD is still stuck in 1.1233- 1.1357 price range of the late November slide. In the near- term, the currency pair leans to bullish side as it trades within the upper bounce of Bollinger band, suggesting a potential upside momentum. In the meantime, the price action continues to remain above the 20 and 50 SMAs. To the upside, EURUSD needs to climb above the resistance at 1.1357 in order to turn from neutral- to- bullish, followed by the resistance at 1.1462. On the flip side, the bearish case can gain momentum on a break below the SMAs and 1.1233, followed by the support at 1.1186.

Resistance: 1.1357, 1.1462, 1.1548

Support: 1.1233, 1.1186

Economic Data: No Economic Calendar Due to Christmas Eve

December 24 2021, Limasso, Cyprus – VT Markets are delighted to welcome Yiangos Georgiou to the company in the role of Regional Business Development Director.

VT Markets, one of the leading and most innovative multi-asset trading platforms, today shared the news of Yiangos Georgiou, former Head of Business Development at 24Option and Head of Affiliates at IronFX Cyprus, joining the company as their new Regional Business Development Director.

Yiangos joins the company armed with over 12 years of experience in the international financial services industry. In his previous role at IronFX. Yiangos led the company’s affiliate and business development team; implementing the execution of expansion in the region.

Yiangos will now support VT Markets in achieving its business development goals on a global level. A major objective of the multi-asset trading services provider based in Sydney Australia is to expand in different areas and the company plans to draw upon Mr. Georgiou’s skills and extensive experience to fulfill this. Yiangos will also focus on introducing high-profile partnerships and putting new business developments into action to cover the whole client lifecycle.

Mr. Georgiou comments:

“I have been in the Forex Industry since 2014, and during that time I have been able to help and assist companies to develop under my guidance. Starting my career within the forex, I have developed and worked endlessly for some prime companies within the industry, and am now a proud member of the VT Group. Joining VT Markets as the Director of Business Development has given me the opportunity to implement my skills and resources to establish our software successfully within the Market.”

VT Markets are excited to welcome Mr. Georgiou to the team.

About VT Markets

VT Markets, based in Sydney, Australia, is a subsidiary of VT Markets LLC (VIG) and leverages more than 10 years of experience and expertise in global financial markets to offer easy and transparent market access and help our clients pursue their financial goals. Founded in 2016, VT Markets has applied for advanced technical support in the retail FX market to provide clients with superior trading experience.

For inquiries, please contact [email protected] or visit www.vtmarkets.com

Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ” .

Please note the specific adjustments as follows:

Note: The above data is for reference only, the actual execution data may be changed, please refer to the MT4/MT5 software for details.

If you’d like more information, please don’t hesitate to contact [email protected].

Market Focus

US stock advanced on Wednesday amid risk-on market sentiment, continuing to climb for a second day as investors considered that the pandemic of the Omicron coronavirus variant won’t derail the economic recovery. The FDA announced that it had approved Pfizer’s highly effective Covid-19 treatment pill for emergency use in the US . Moreover, three new studies showed that infection with Omicron is significantly less likely to result in hospitalisation. Therefore, market sentiment were improving as more and more evidence is indicating that the strain is potentially less severe than prior strains like Delta, which might give a boost to economic recovery in 2022. On top of that, some upbeat economic data also helped easing markets’ concerns about the epidemic, with US Existing Home Sales and Consumer Confidence both came in better-than-expected readings.

The benchmarks, S&P 500, Nasdaq 100 and the Dow Jones Industrial Average both rose on Wednesday as investors believe that Omicron variant would only have a temporary impact on the economic activity. US equity markets have maintained on Tuesday’s momentum. S&P 500 was up 1.0% on a daily basis and the Dow Jones Industrial Average also advanced with a 0.7% gain for the day. All eleven sectors stayed in positive territory as the consumer discreet and information technology sectors are the best performing among all groups, rising 1.73% and 1.33%, respectively. The Nasdaq 100 climbed the most with 1.2% gain on Wednesday and the MSCI World index rose 1.0%, while the S&P 500 CBOE volatility index dropped more than 1.50 and is now back below 20.00.

Main Pairs Movement:

The US dollar declined on Wednesday, staying in negative territory amid risk-on market mood and falling US bond yields. The DXY index reached a daily top during late Asian session, then pulled back to under 96.05 level to surrender most of its intraday’s gains. The positive news about the Omicron variant lend strong support to the stock markets and dampened the demand for the safe-haven greenback. The US FDA is now officially authorize the Paxlovid pill from Pfizer to treat high-risk patients.

GBP/USD advanced 0.66% on Wednesday amid renewed weakness saw in US dollar across the board. Investors’ optimism on the Omicron variant improved risk appetite and increased demand for risk-sensitive currencies like the British pounds. The cable touched a daily high above 1.335 level during American session, and the next strong resistance sits at 1.3374. Meanwhile, EUR/USD climbed to a daily top above 1.133 level but then retreated back to surrender some of its intraday’s gains. The pair gained 0.32% for the day.

Gold advanced and touched a daily top above $1804 in late American session, as the broad US dollar weakness keep investors using gold to hedge higher inflation. Meanwhile, WTI oil surged almost 2.5% for the day and climbed above $72.0 level, as the improving risk appetite and bullish inventory data both acted as a tailwind for the black gold. The US Crude Oil Inventories declined more than expected at over 4.7M barrels.

Technical Analysis:

XAUUSD (4- Hour Chart)

Gold steadily holds below 1800 as a global rebound in stocks moderated, with the markets grappling with uncertainty over the new variant Omicron and an unclear economic outlook. From the technical aspect, the outlook of gold seems directionless on the 4- hour chart, looking to turn upside in the near- term as it is trading slightly above the 20 SMA as the tine of writing. As the RSI is slightly above 50^th mark, gold’s bulls will attempt to test its psychological resistance at 1800 again. Further up, if buying resurgence above 1800 level, it will expose the opportunity to the upside toward 1815. On the flip side, a fresh downswing below the 20 SMA will turn gold to bearish in the near- term.

AAResistance: 1800, 1815, 1829

Support: 1782, 1770, 1765, 1753.

BTCUSD ( Daily Chart)

Bitcoin edges near 49500 ahead of Christmas holiday. Bitcoin seems to back in trend as the markets are back in green. From the technical perspective, the daily outlook of Bitcoin remains downside as it continues to trade within the lower bounce of Bollinger band, suggesting that selling pressure still exist despite the recent rise. Current support at 46510 becomes a critical and robust level for Bitcoin; if Bitcoin falls below 46510, then it will accelerate its bearish momentum and re- confirm its bearish mode. On the flip side, Bitcoin needs to climb above 55103, where the intersection of the resistance and the ascending line, in order to reclaim bullish stance. As the time of writing, the upside momentum has the opportunity to keep up as the RSI is well below overbought condition, giving rooms for Bitcoin to rise further north.

Resistance: 55103, 58000, 68991

Support: 46510, 39566, 32621

AUDUSD (4- Hour Chart)

AUDUSD attracts some buyers, pushing the price above 0.7219, ahead of US employment data. From the technical perspective, the 4- hour outlook remains bullish as it stays within the bearish channel. However, any subsequent move up is likely to face a stiff resistance at 0.7227, and it is challenging to break through as trading above 0.7227 will become a monthly high. In the meantime, if the currency can clear the resistance decisively, then it can see a fresh trigger for a bullish trend toward 0.7277. The upside momentum might pause before heading north as the RSI has reached nearly overbought, the momentum might limit.

Resistance: 0.7227, 0.7277

Support: 0.7170, 0.6997

Economic Data

Dear Client,

As part of our commitment to provide the best reliability and service to our client, we are planning an upgrade to our server on December 25th, 2021, and January first, 2022.

As a result, we will be conduct maintenance according to the schedule below.
Start date and time: 2021-12-25 00:00 GMT+2(Server time)
End date and time: 2021-12-27 00:00 GMT+2(Server time)

Start date and time: 2022-1-1 00:00 GMT+2(Server time)
End date and time: 2022-1-3 00:00 GMT+2(Server time)

Kindly be reminded that the following things might be affected during this maintenance period:

1. The login and operation of the client portal

2. The login of the trading account

3. The quotations of products will be paused. Clients might not be able to open new positions or close the held positions.

4. There might be a gap between the original price and the price after maintenance. Pending orders, Stop Loss, and Take Profit settings within the gap will be filled at the market price after maintenance ends.

After the upgrade, clients can login to trading account using the server which is shown in the account activation mail.

No action is required by our client. Your service will be back online after the maintenance is completed.

Thank you for your patience and understanding with regard to this important initiative.

If you’d like more information, please don’t hesitate to contact [email protected].

Market Focus

US stock advanced on Tuesday amid risk-on market sentiment, rebounding from its biggest three-day slide since September as the market demand for risk assets increased. Despite US Democrat Senator Joe Manchin rejected Biden administration’s $1.75T Build Back Better (BBB) social spending package yesterday, President Joe Biden said that he still has a chance to strike a deal with Manchin to get his roughly $2 trillion economic plan through Congress. Therefore, the possibly reviving talks on Biden’s economic agenda lend some support to stock markets. On top of that, Biden is also considering dropping travel restrictions against South Africa, where the new Omicron variant was first identified. Another news from Bloomberg reported that the US food and Drug Administration was set to authorize their pills to treat coronavirus as soon as this week.

The benchmarks, S&P 500, Nasdaq 100 and the Dow Jones Industrial Average both rose on Tuesday as risk appetite flips positive in American session and the prospect of President Joe Biden’s economic plan are also improving. S&P 500 was up 1.8% on a daily basis and the Dow Jones Industrial Average also advanced with a 1.6% gain for the day. Nine out of eleven sectors stayed in positive territory as the energy and information technology sectors are the best performing among all groups, rising 2.89% and 2.60%, respectively. The Nasdaq 100 climbed the most with 2.3% gain on Tuesday due to the surge in chipmaker Micron Technology Inc., and the MSCI World index rose 1.7%.

Main Pairs Movement:

The US dollar edged lower on Tuesday, staying in negative territory amid upbeat market mood despite the US 10-year yields ending 3.7% higher. The DXY index dropped to a daily low under 96.35 level during European session, then rebounded back above 96.62 to offset most of its intraday’s losses. Investors now considered that vaccines helped tame the Omicron virus outbreak and the news that the US FDA is ready to authorize pills from Pfizer and Merck also favored US stock market and acted as a headwind for the safe-haven greenback.

GBP/USD advanced 0.47% on Tuesday as a broader recovery in risk appetite across markets favored risk currency like British pounds. But traders will remain on notice for an new lockdown announcement that could come later in the week. The cable kept being pushed higher through out the session, touching daily highs around 1.326 area. Meanwhile, EUR/USD climbed to a daily top above 1.130 level but then retreated back to surrender some of its intraday’s gains. The pair gained 0.09% for the day, as volumes are thinning ahead of Christmas holidays.

Gold declined and touched a daily low under $1785 in late American session, as the appetite for riskier assets dented demands in the precious metal. Meanwhile, WTI oil surged almost 3.0% for the day, as the risk-on market mood and positive news about Omicron variant both acted as a tailwind for the black gold.

Technical Analysis:

XAUUSD (4- Hour Chart)

The precious metal, gold eases as the markets assess Omicron impact and the Fed’s plan on hiking rates. Fundamentally, gold is caught in a dilemma; although gold is considered a hedge against inflations, the Fed’s rate hikes at the same time increase the opportunity cost of holding non- yielding gold. As a result, it is expected to see a choppiness and consolidating trend for gold. From the technical perspective, gold becomes bearish in the near- term, trading at 1787, as it falls below the 20 SMA, suggesting that gold has turned weak against the US dollar. Gold is expected to consolidate within 1782 to 1800 range as the technical indicator RSI is neither in the overbought nor oversold territory, suggesting a directionless circumstance. On the upside, any subsequent move would face stiff and psychological resistance at 1800, followed by 1815. On the flip side, 1765- 1770 region seems to protect the immediate downside, followed by 1753.

Resistance: 1800, 1815, 1829

Support: 1782, 1770, 1765, 1753.

GBPUSD (4- Hour Chart)

GBPUSD gains traction in the early US trading session on Brexit headline, currently trading at 1.3252. However, the markets’ focus remains on the likelihood of stricter Covid restriction amid the spread of Omicron. From the technical perspective, except the outbreak price action on last Friday, GBPUSD overall falls back, turning into a consolidation phase in the range from 1.3163 to 1.3267. From the near- term outlook, the currency pair remains bearish as it continues to trade below the 20 and 50 SMAs. In the meantime, the bears are supported by a negative MACD, lending aids to the bears, although the RSI is currently directionless. On the upside, GBPUSD needs to climb above its resistance 1.3267 in order to turn bullish in the near- term.

Resistance: 1.3321, 1.3419, 1.3499

Support: 1.3163

AUDUSD (4- Hour Chart)

The RBA minutes seemed to deliver few surprise for the Aussie, and the markets preferably focus on the US data later this week. From the technical aspect, AUDUSD advances above the resistance at 0.7116, trading at 0.7142 as the time of writing. The four- hour outlook of the currency pair remains bullish as it continues to trade within the ascending channel. More importantly, both the MACD and RSI synchronously turn upside, meaning that buyers are taking the control. AUDUSD is expected to head toward 0.717, the immediate hurdle; if the pair successfully breaches the level, then it will re- confirm the bullish trend. On the flip side, AUDUSD needs to hold steadily above the ascending line in order to remain bullish.

Resistance: 0.717, 0.7227, 0.7277

Support: 0.6997

Economic Data

Market Focus

US stock declined on Monday amid downbeat market sentiment, making its biggest three-day drop since September as the concerns about the rapid spread of the Omicron variant in Europe dragged down stocks. After the Netherlands announced a full lockdown on Sunday, the UK is rumored to be planning a lockdown from 27 December and other countries are expected to follow suit straight after Christmas. Investors now worry that the US could end up in a same result when it comes to the pandemic. On top of that, US Democrat Senator Joe Manchin rejected Biden administration’s $1.75T Build Back Better (BBB) social spending package, which has dented confidence in US growth prospects and weighed negatively on the market mood. Meanwhile, the hawkish signals Fed that it might end asset purchases sooner than planned also acted as a headwind for the stock markets.

The benchmarks, S&P 500, Nasdaq 100 and the Dow Jones Industrial Average both dropped on Monday amid concerns about President Joe Biden’s economic agenda and the surging cases of the Omicron variant. S&P 500 was down 1.1% on a daily basis and the Nasdaq 100 also declined with a 1.1% loss for the day. Nine out of eleven sectors stayed in negative territory as the financials and materials sectors are the worst performing among all groups, losing 1.90% and 1.82%, respectively. The the Dow Jones Industrial Average dropped the most with 1.2% loss on Monday and the MSCI World index fell 1.4%. Moreover, the S&P 500 CBOE Volatility Index climbed back and touched two-week highs above 25.00 for the day due to the surge in selling.

In Asia, China’s economy is dragged down by the slowdown in the nation’s property sector , as well as the regulatory crackdown on private industries from Beijing. Therefore, the surprise rate cut by the People’s Bank of China (PBOC) failed to support the Asia-Pacific shares.

Main Pairs Movement:

The US dollar edged lower on Monday, staying in negative territory amid falling US 10-year Treasury yield. The DXY index dropped to a daily low under 96.36 level during American session, then rebounded back moderately to pare some of its intraday’s losses. Goldman Sachs Group Inc. economists reduced US economic growth forecasts after US Democrat Senator Joe Manchin rejected Biden’s roughly $2 trillion tax-and-spending package. But the hawkish Fed and prospects that the US central bank policymakers expect three rate hikes by the end of 2022 will both limit the downside for the greenback.

GBP/USD declined 0.21% on Monday amid global concerns on the Omicron variant, as the UK reported 82,886 new coronavirus cases. The resign from Brexit UK’s top negotiator David Frost also weigh on the pair. The cable touched a daily top in late European session, then retreated back to surrender most of its intraday’s gain. Meanwhile, EUR/USD climbed to a daily top above 1.13 level and gained 0.34% for the day, as the euro has been the best performing G10 currency on Monday.

Gold declined and touched a daily low under $1788 in late American session. The recent weakness for the precious metal was mainly due to fears over the Omicron covid variant. Meanwhile, WTI oil tumbled 1.01% for the day, as the pressure on European countries to announce a lockdown will restrict near-term crude oil demand.

Technical Analysis:

XAUUSD (4- Hour Chart)

Gold is trading below 1800, struggling to make use of risk- averse market condition as major indices are tumbling amid Omicron fears. From the technical analysis, gold’s bulls are fighting against the critical level above the 20 SMA on the four- hour chart. On intraday basis, gold has failed to defend its support at 1800(38.2% Fib. Retracement.) If the next level, the 20 SMA, goes, gold is likely to slip back to test mid- December highs and the support at 1782, leading to a bearis trend. The technical indicator, the RSI, seems to favor the downside momentum more as the RSI is still far away from the oversold territory, giving rooms for gold to extend further south. On the flip side, in order to reclaim the bullish trend, gold would need to hold steadily above 1800.

Resistance: 1800, 1815, 1829

Support: 1782, 1770, 1753

GBPUSD (4- Hour Chart)

GBPUSD fails to recover above the 50 SMA in the early American trading session, trading at 1.3222. GBPUSD’s upside seems to be capped amid the rapid surge of the new Omicron cases in December, more than 140,000 cases got reported in London. From the technical perspective, GBPUSD continues to trade within the lower bounce of Bollinger Band, suggesting that the outlook remains downside in the near- term. In intraday trading, the 50 SMA becomes a barrier, followed by the resistance at 1.3317. On the downside, it is suggesting that the bearish momentum might continue as the RSI is still away from oversold, meaning that there are rooms for the pair to extend further south before it becomes technically oversold on the 4- hour chart. And the next relevant support located at 1.3163. On the flip side, GBPUSD needs to climb at least above the 20 and 50 SMAs in order to reclaim positive move.

Resistance: 1.3321, 1.3419, 1.3499

Support: 1.3163

Nasdaq 100 (Daily Chart)

The major indices, including Nasdaq 100, tumble on Monday as the market continues to react the resurgence of the Covid from the new variant Omicron. From the technical perspective, the Nasdaq extends further south for a three successive day. As the time of writing, today’s decline would bring the Nasdaq below its immediate support level at 15706, suggesting a bullish- to- bearish trend in the near- term. Furthermore, today’s bearish move would officially make the Nasdaq break all four SMAs, including the 5 SMA, 10, SMA, 20 SMA, and 60 SMA, indicating a negative mode for the index. In the meantime, the downside momentum is also supported by the negative MACD. As of now, in order to overturn its current stance, the index needs to climb at least 15706 to reclaim upside trend, and climb above all four SMAs to re- confirm a bullish stance. Nonetheless, from a bigger perspective, the bullish trend of the Nasdaq seems to be not over yet until it hits the overall up- trend. In the past, the up- trend most of the time acts as a strong support for a rebound after a big tumble for the Nasdaq.

Resistance: 15706, 16487

Support: 14457

Economic Data

Market Focus

US stock declined on Friday amid downbeat market sentiment, dropping to two-weeks lows as traders and market participants weigh up this week’s main macro narratives, including the Fed’s hawkish pivot. The Fed and the European Central Bank both started to tighten their monetary policy, given the fact that they see inflation pressures as a higher priority than protecting output and employment from further pandemic fallout. More bad news for equity investors, the Fed might need to end its upcoming hiking cycle sooner, which suggest that the stock markets are due for a rougher patch and the economic growth could be at risk. Long-term US bond yields also fell on Friday, weighing on the appeal of cyclical stocks. On top of that, concerns about the spread of Covid-19 still remained, as New York reports over 20,000 cases in single-day record and caused a wave of school closings as well as business disruptions.

The benchmarks, S&P 500, Nasdaq 100 and the Dow Jones Industrial Average both dropped on Friday amid downbeat market mood and a perspective that Fed is about to speed up to end its asset purchases sooner than planned. S&P 500 was down 1.0% on a daily basis and the Nasdaq 100 declined with a 0.4% loss for the day. All eleven sectors stayed in negative territory as the energy and financial sectors are the worst performing among all groups, losing 2.27% and 2.24%, respectively. The the Dow Jones Industrial Average dropped the most with 1.5% loss on Friday and the MSCI World index fell 0.9%.

In Asia, the focus in China is on the loan prime rate decision. A property sector crackdown has weighed on economic expansion and calls for a rate cut are now gaining momentum, despite the Chinese central bank’s benchmark hasn’t been cut since April 2020.

Main Pairs Movement:

The US dollar advanced on Friday, staying in positive territory amid risk-off market sentiment. The DXY index climbed to a daily top around 96.67 area near the end of the day, as the hawkish Fed and the renewed weakness in stock markets both pushed the greenback higher. The Federal Reserve Governor Christopher Waller said that rates could rise as early as March, following a decision to end asset purchases sooner than planned. Additionally, the Summary of Economic Projections, also known as SEP, also showed that the US central bank policymakers expect three rate hikes by the end of 2022, projecting the FFR at 0.90%.

GBP/USD declined 0.64% on Friday amid renewed US dollar strength, falling back to 1.330 area after the BoE surprised markets with a 15bps rate hike on Thursday. The cable touched a daily top in early European session, then retreated back to surrender most of its intraday’s gain. Meanwhile, EUR/USD dropped to a daily low under 1.124 level, losing 0.82% for the day.

Gold edged lower and touched a daily low around $1795 in late American session. The falling US stock market failed to pushed the precious metal higher, which dropped 0.06% on a daily basis. Meanwhile, WTI oil tumbled 2.18% for the day, as market’s risk appetite faded amid this week’s hawkish turn from many G10 central banks and a continued rise in Omicron cases across the world.

Technical Analysis:

XAUUSD (4- Hour Chart)

Gold rides higher on the hawkish central banks’ decisions, having taken out the psychological level at 1800. The renewed upside in gold price might get the stanta rally io. From the technical perspective, the intraday bias turns bullish on the 4- hour chart as gold has overcame the critical psychological resistance at 1800. If the latter is scaled, the gold will head toward its next immediate resistance at 1815; nonetheless, the upside momentum might be capped as the RSI indicator has reached the overbought territory, suggesting a pullback. Selling interest can begin accelerating once gold price falls below 1800 again, opening floors toward the previous descending wedge.

Resistance: 1815, 1829

Support: 1800, 1782, 1770, 1753

GBPUSD (4- Hour Chart)

GBPUSD erases most of the gain from yesterday after the BOE’s hawkish tone as the US dollar holds steadily above 96.00. From the technical analysis, GBPUSD looks to head back to a consolidation phase in the 1.3332- 1.3163 range. As the time of writing, GBPUSD is at a critical point, the intersection of the 20 SMA and the support at 1.3267; if the pair falls below the level, then it will turn downside in the near- term. From the technical indicator, the RSI looks to favor sellers while the MACD starts turning south side, suggesting that buyers side is less powerful. As a result, the currency pair might gradually shift to selling side.

Resistance: 1.3321, 1.3419, 1.3499

Support: 1.3267, 1.3163

AUDUSD (4- Hour Chart)

AUDUSD trims early gains from this week, trading at 0.7142 as the time of writing. The Australian dollar sees a downside as the markets appear to making the assumption that economic disruption in Australia will likely happen as the new variant Covid spreads more rapidly. From the technical aspect, the Aussie sees a turnaround after testing its monthly high around 0.7227. The outlook of the Aussie remains neutral as the pair seems to fall back to the consolidated phase, and the range is looking to fall within 0.717 and 0.7116. For the time being, the Aussie is expected to continue heading toward its immediate support at 0.7116 as the RSI is leaning down, suggesting that the sellers are more favorable; at the same time, the MACD becomes negative, giving the pair rooms to extend further south.

Resistance: 0.7170, 0.7227

Support: 0.7116, 0.6997

Economic Data