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

Wall Street’s three major indexes rallied higher on Wednesday, as gains in the technology, basic materials and telecom sectors led stocks higher. In addition, the yield on the 10-year U.S. Treasury yield retreated from multi-year highs hit in the previous session, helping to stabilize global market sentiment and boosting demand for growth stocks. At the end of the market, the Dow Jones Industrial Average rose 0.86% to 35,768.06 points, the S&P 500 index gained 1.45% to 4,587.18 and the Nasdaq Composite Index added 2.08% to 14,490.37 points. On the other hand, the pan-European Stoxx 600 gained 1.7%, led by a 4.0% gain by automakers. Volkswagen was one of the index’s biggest gainers, up 6.1%, while its biggest investor, holding company Porsche, rose 8.2%

The 11 sectors of the S&P 500 performed brightly. The biggest winner was the communication services sector, which rose 2.45%, followed by the real estate, information technology and materials sectors, which rose 2.38%, 2.31% and 2.13% respectively. The best performers on the Dow were Disney, which rose 3.33%. Meanwhile, Intel was up 2.25% and Microsoft was up 2.18%. The top performers in the S&P 500 were Omnicom, Enphase Energy and Chipotle, which up 14.19%, 12.03% and 10.16% respectively. On Thursday, investors will be closely watching CPI data for clues on the Fed’s plans to raise interest rates. A surprisingly strong jobs report last week raised fears of more aggressive central bank moves.

Main Pairs Movement:

A pullback in government bond yields weighed on the dollar, which ended mixed. The U.S. 10-year Treasury yield was around 1.93%, retreat from its weekly high of 1.97%.

Sterling and the euro were unchanged in intraday trade, keeping choppy in a consolidation range. The GBP/USD trades around 1.35320, while the EUR/USD swings around 1.1420.

Commodity-related currencies were the best performers, with AUD/USD trading in the 0.7180 range, extending its three-day rally. USD/CAD also performed well, slipping to the 1.2670 area after BOC Governor Tiff Macklem made a confidence statement at the Canadian Chamber of Commerce that supply chain issues would subside soon.

Gold kept moving north and peaked $1,835.86 an ounce. Meanwhile, oil prices finally found some support after a two-day losing streak. At the end, WTI closed at $90.00 a barrel and Brent at $91.68 a barrel.

Technical Analysis:

EURUSD (4-Hour Chart)

The EUR/USD pair edged higher on Wednesday, regaining some upside tractions and rebound to 1.1440 area amid US dollar weakness. The pair dropped to a daily low in early European session, but then reversed its weakness and climbed above the 1.1440 mark heading into American session. The pair was last seen trading at 1.1436, posting a 0.19% gain on a daily basis. EUR/USD stays in the positive territory amid weaker US dollar across the board, as the falling benchmark 10-year US Treasury bond yield dragged the greenback lower. However, expectations that the Fed would adopt a more aggressive policy might limit the losses for greenback and put pressure on EUR/USD. In Europe, ECB’s Governing Council Joachim Nagel said that he support a rate hike in 2022 after ending bond purchases if the inflation picture doesn’t change by March.

For technical aspect, RSI indicator 59 figures as of writing, suggesting that the upside is more favored as the RSI stays above the midline. As for the Bollinger Bands, the price is crossing above the moving average, which indicates that the pair could remain its upside traction. In conclusion, we think market will be slightly bullish as the pair might re-test the 1.1480 resistance. But the pair is now staying in a consolidation phase.

Resistance: 1.1480, 1.1612

Support: 1.1360, 1.1284, 1.1132

GBPUSD (4-Hour Chart)

The pair GBP/USD advanced on Wednesday, surrounding by bullish momentum amid risk-on market sentiment and a sharp pullback in the US Treasury bond yields. The pair touched a fresh weekly high above 1.3585 level, then lost upside traction and surrendered some of its intraday gains. At the time of writing, the cable stays in positive territory with a 0.10% gain for the day, witnessing some fresh selling amid comments from BoE Chief Economist Huw Pill. He said that outlook for bank rate beyond coming months is uncertain, meanwhile inflation and output volatility could increase if the policy is miscalibrated. On top of that, the risk-on mood and retreating US dollar both acted as a tailwind for the cable. Market focus now shifts to US CPI data, which might influence the Fed’s monetary policy and provide trading impetus to the GBP/USD pair.

For technical aspect, RSI indicator 52 figures as of writing, showing that there is no obvious direction for the pair. As for the Bollinger Bands, the price dropped from the upper band after crossing it, so downside momentum could be expected. In conclusion, we think market will be bearish as the pair failed to break above the 1.3578 resistance. Also, traders might be reluctant to place aggressive bullish bets ahead of the US CPI report.

Resistance: 1.3578, 1.3608, 1.3739

Support: 1.3512, 1.3456, 1.3372

USDCAD (4-Hour Chart)

After previous day’s rebound to 1.2710 area, the pair USD/CAD failed to preserve its upside traction and remained under pressure today amid modest US dollar weakness. Despite bouncing back slightly in early European session, the pair saw fresh selling again and dropped towards 1.2680 mark heading into American session, now losing 0.19% on a daily basis. The sharp pullback in the US Treasury bond yields and the risk-on sentiment both decreased the demand of the safe-haven greenback. On top of that, crude oil inventories in the US tumble unexpectedly by 4.756 million barrels and pushed WTI to fresh daily highs above $89.00. But expectations that the 2015 nuclear deal will be agreed by US and Iran might weigh on crude oil prices and act as a headwind for the the commodity-linked loonie.

For technical aspect, RSI indicator 42 figures as of writing, suggesting bear movement ahead. As for the Bollinger Bands, the price fell from the moving average towards lower band, therefore the downside momentum should persist. In conclusion, we think market will be bearish as long as the 1.2778 resistance line holds. And escalating fears of Russia’s attack on Ukraine might lend support to the black gold and undermine the USD/CAD pair.

Resistance: 1.2778, 1.2843

Support: 1.2637, 1.2575, 1.2462

Economic Data:

As a trader, you have to know and understand the terms used in trading to achieve your trading goals and earn a profit.

Among the terms that a trader must arm himself is Forex order, which means an offer you receive using your broker’s trading platform whether to open or close a transaction—should your specific instructions are satisfied.

At VT Markets, we have common types of orders available on our platform: market orders, limit orders, and stop-loss orders.

But first, let’s talk about buying and selling.

Buy and Sell

Buying and selling revolve around the potential movement of an instrument to earn profit. You buy when we see an opportunity for an instrument to raise and sell when you see an opportunity for an instrument to fall.

In Forex Trading, you trade in pairs. When you buy, you are buying one currency and selling another, and when you sell, you are selling a currency and buying another.

Here’s an example:

The image above shows 3 forex pairs: EURUSD, AUDJPY, and EURSGD.

If you want to buy or sell, you have to choose which pair to use. This example uses EURUSD, a forex pair between EUR and USD.

If you click buy, you are buying EUR and selling USD. And if you click sell, you are selling EUR and buying USD.

As discussed earlier, there are several types of orders to trade, buy, and sell in Forex.

Market Order

A market order is a type of order to buy or sell an instrument pair immediately.

When you see a current running price then decide to buy or sell at that instance, you can select Market Order and then click buy or sell based on our analysis.

But you must understand that a Market Order means you click on the running price, which then executes the order; however, you may get a different executed price.

Generally, you will get the executed price near the current price.

If you have downloaded our VT Markets app, you can use Market Execution to trade instantly. Just select Buy by Market or Sell by Market.

Pending Orders

Sometimes, a trader has a trading plan to Buy or Sell at a specific price. However, the current price is still nowhere near the price. So, rather than waiting for the market to reach their strategy, they usually use Pending Orders and put in that specific price.

There are 2 types of Pending Orders:

Limit Orders – A limit order is an order to buy or sell an instrument/forex pair at a specific price[2] . A buy limit order can only be executed below the current running price. Meanwhile, a sell limit order can only be executed higher than the current running price.

Here’s an example:

If you want to order a buy limit in EURUSD, then from the current running buy price of 1.12318, you can only order a Buy Limit lower than 1.12318.

When you want to order a sell limit in EURUSD, then from the current running sell price of 1.12315, you can only order a Sell Limit higher than 1.12315.

Stop Orders – A limit order is an order to buy or sell an instrument/forex pair at a specific price . A buy stop order can only be executed higher than the current running price. Meanwhile, a sell stop order can only be executed lower than the current running price.

Here’s an example:

If you want to order a buy stop in EURUSD, then from the current running buy price of 1.12318, you only order a Buy Stop higher than 1.12318.

When you want to order a sell stop in EURUSD, then from the current running sell price of 1.12315, you can only order a Sell Stop lower than 1.12315.

All in all, it is vital to understand these terms for a more informed trading decision. It is equally important to choose a Forex broker that can provide a platform that makes trading much easier and more profitable, whether you are a seasoned trader or a beginner.

Get in touch with us for more details or click here to create an account with VT Markets today!

Market Focus

Wall Street’s three major stock indexes closed higher on Tuesday, with the S&P 500 and the tech-heavy Nasdaq recovering early losses and rising late in the session, with Amazon up 2.2% and Apple and Microsoft both up more than 1%. Also, as the 10-year U.S. Treasury yield hit its highest level since November 2019, the S&P 500 banks index rose 1.9%. At the end of the market, the Dow Jones Industrial Average rose 1.06% to 35,462.78 points, the S&P 500 index gained 0.84% to 4,521.52 and the Nasdaq Composite Index added 1.28% to 14,194.46 points

Of the 11 sectors of the S&P 500, 3 ended lower, with the energy sector falling the most, down 2.12%. The biggest winner was materials sector, up 1.57%, followed by the consumer discretionary sector, which rose 1.50%. The energy sector fell as investors worried that a resumption of indirect talks between the United States and Iran could revive an international nuclear deal and allow OPEC producers to boost oil exports. On the other hand, earnings were mixed on Tuesday, with Pfizer falling after the drugmaker’s full-year sales forecast for its COVID-19 vaccine and antiviral pill fell short of expectations. Amgen surged nearly 8% after the company announced up to $6 billion in buybacks and forecast earnings to double by 2030. Meta fell 2.1% after billionaire investor Peter Thiel decided to step down from the company’s board, sending the stock down for a fourth straight day after last week’s bleak forecast wiped out billions in market value.

Main Pairs Movement:

The major currency pairs continued to lack direction, staying within a consolidation range on Tuesday. The dollar finally found some support amid a surge in government bond yields, with the U.S. 10-year yield hitting 1.97%. However, the strength in yields was not enough to make up for the dollar’s decline over the past week.

Sterling and the euro edged lower as the dollar strengthened, with sterling flat against the dollar, up 0.02% in late trade, while the euro edged down 0.24% against the dollar. The main pressure on the euro came from comments from ECB member François Villeroy, who said that markets may have overreacted to President Christine Lagarde’s remarks.

USD/CAD edged higher and is hovering around 1.2700 as lower oil prices dampen demand for the Canadian dollar.

Gold soared to a fresh two-week high of $1,828.36 an ounce and settled near $1,825. Meanwhile, oil prices faced a two-day losing streak, with WTI closing at $89.75 a barrel and Brent at $91.16 a barrel.

Technical Analysis:

EURUSD (4-Hour Chart)

The EUR/USD pair declined on Tuesday, continuing to edge lower amid ECB President Christine Lagarde’s dovish comment. The pair saw heavy selling at the start of the day and touched a daily low below 1.140 mark in early European session, now ebounding slightly to eliminate some of its intraday losses. The pair was last seen trading at 1.1405, posting a 0.33% loss on a daily basis. EUR/USD stays in the negative territory amid stronger US dollar across the board, as the benchmark 10-year US Treasury bond yield rose toward 2%, helping the greenback outperform its major rivals. Meanwhile the expectations for a Fed tightening might keep weighing on EUR/USD. In Europe, ECB’s Lagarde said that inflation is expected to remain stable and there is no need for major policy tightening, pulling ECB out of the previous hawkish stance.

For technical aspect, RSI indicator 54 figures as of writing, suggesting that the upside is more favored as the RSI stays above the midline. But looking at the Bollinger Bands, the price is approaching the lower band, which indicates that the pair could remain its downside traction. In conclusion, we think market will be bearish as long as the 1.1479 resistance holds. Further declines should favor bears and extend toward the 1.1260 region.

Resistance: 1.1479, 1.160

Support: 1.1386, 1.1284, 1.1132

GBPUSD (4-Hour Chart)

The pair GBP/USD edged higher on Tuesday, attracting some dip-buying and bounce back amid risk-on market sentiment. The pair started to witness bullish momentum in early European session and rallied to a daily high above 1.3560 level, but lacked recovery strength. At the time of writing, the cable stays in positive territory with a 0.13% gain for the day, flirting with the 1.3500~1.360 area with no obvious direction. The risk-on market mood lend support to the British pounds, but the expectations that the Fed would tighten its policy at a faster pace and a rate hike in March might keep a lid on any further upside for the cable. As for now, investors awaits Thursday’s US CPI data, which could adds pressure on the Fed to tighten monetary policy and weigh on GBP/USD pair.

For technical aspect, RSI indicator 54 figures as of writing, suggesting tepid bull movement ahead. For the MACD indicator, a golden cross is forming on the histogram, showing potential upside momentum. The Bollinger Bands is also indicating bull signals as the pair is crossing above the moving average. In conclusion, we think market will be slightly bullish as the pair failed to break below the 1.3512 support. The pair needs to rise above 1.3560 in order to regain its bullish momentum and target 1.3608 resistance.

Resistance: 1.3608, 1.3739

Support: 1.3512, 1.3372

USDCAD (4-Hour Chart)

After previous day’s slide to 1.2670 area, the pair USD/CAD staged a goodish rebound towards 1.2700 level today amid modest US dollar strength. The pair was surrounded by bullish momentum most of the day and reached a daily top near 1.2720 mark during American session, rising 0.27% on a daily basis. The speculations for a faster policy tightening by the Fed bolstered the benchmark 10-year US Treasury bond yield, therefore pushing the greenback and USD/CAD pair higher. On top of that, the falling crude oil price also acted as a headwind for the the commodity-linked loonie, as WTI pulled back from seven-year highs to $89.00 amid profit-taking. But the conflict between Russia and Ukraine should limit losses for oil prices.

For technical aspect, RSI indicator 50 figures as of writing, suggesting that the pair lacks obvious direction now. As for the Bollinger Bands, the pair might crosses above the moving average as prices have a tendency to bounce within the bands’ envelope. In conclusion, we think market will be bullish as long as the 1.2667 support line holds. If the US and Iran can agree on the 2015 nuclear pact deal, this would help ease upward pressure on crude oil markets.

Resistance: 1.2778, 1.2831

Support: 1.2667, 1.2575, 1.2460

Economic Data:

Market Focus

Stock turned lower to close a choppy session at the start of another busy week for corporate earnings and fresh economic data, as investors continue to assess the Federal Reserve’s path forward for monetary policy. S&P 500 declined after posting its best weekly rise of the year last week, close 0.37% lower at 4483.86. Dow Jones traded sidelined, and the Nasdaq underperformed as technology shares fell anew, down 0.58% to 14015.67 at the end of the day.

U.S. President Joe Biden said the controversial Nord Stream 2 natural gas pipeline between Russia and Germany would be stopped if President Vladimir Putin orders an invasion of Ukraine. “We will bring an end to it,” Biden said at a joint news conference at the White House on Monday with German Chancellor Olaf Scholz in a short answer to a question about whether he had received assurances from Scholz. “The notion that Nord Stream 2 is going to go forward with an invasion by the Russians — that’s not going to happen.”

Earlier, Scholz’s top diplomat said that Europe’s largest economy was willing to “pay a high economic price” that would come with supply cutoffs. Foreign Minister Annalena Baerbock is a member of the Greens and has been more explicit than Scholz in pledging to target Nord Stream 2.

A main concern for Europe, which depends on Russia for gas, is trying to secure supplies in a scenario where it could get cut off. Biden sought to address this worry and said the U.S. had been looking for alternative sources: “We think we could make up a significant portion of it that would be lost.” The comments from Biden represent the largest-yet commitment by the U.S. to ensure European allies have sufficient supplies of natural gas amid potential conflict with Russia, which provides about 40% of the bloc’s needs today.

Main Pairs Movement:

The week started in slow motion, and the dollar ended the day mixed across the board. It managed to add some ground against its European rivals, although EUR/USD held above 1.1400, while GBP/USD settled at around 1.3530. ECB President Christine Lagarde poured cold water on rate hikes speculation. Speaking before the EU Parliament she said that there is no sign that inflation will measurably exceed the bank’s 2% target in the medium term.

Commodity-linked currencies, on the other hand, managed to advance with AUD/USD trading at around 0.7120 and USD/CAD accelerating its slide at the end of the day to trade in the 1.2660 price zone.

Gold maintained its bullish stance throughout the day, ending the American session at $1,820 a troy ounce. Crude oil prices, however, retreated from their multi-year highs and WTI settled at $91.20 a barrel, Brent at $92.90. US Treasury yields were sharply up ahead of the opening, holding on to gains, but pulling back from intraday highs.

Technical Analysis:

EURUSD (4-Hour Chart)

The EUR/USD pair declined on Monday, retreating from multi-week highs above 1.1470 mark that touched last Friday. The pair was trading lower and dropped to a daily low during Asian session, now starting to see fresh selling again after trying to rebound earlier in the session. The pair was last seen trading at 1.1441, posting a 0.08% loss on a daily basis. EUR/USD stays in the negative territory amid the recovering US dollar, despite the greenback remains on the back foot most of the day and failed to build on the post-NFP recovery. A softer tone around the US Treasury bond yields also weighed on the greenback. In Europe, ECB’s Lagarde will speak before the European Parliament later in the session. The expectation for a potential ECB lift-off in September or December might keep acting as a tailwind for the Euros.

For technical aspect, RSI indicator 63 figures as of writing, suggesting that the upside is more favored as the RSI stays above the midline. But looking at the Bollinger Bands, the price dropped towards the moving average after touching the upper band, which indicates that the pair could remain its downside traction. In conclusion, we think market will be bearish as long as the 1.1479 resistance holds. But if the pair break through that level, a rally towards the 1.1550 region could be expected.

Resistance: 1.1479, 1.1599

Support: 1.1284, 1.1132

GBPUSD (4-Hour Chart)

The pair GBP/USD edged lower on Monday, trading broadly flat at the start of the week within 1.3500-1.3550 area. The pair was surrounded by bearish momentum and dropped to a daily low below 1.3500 level during European session, then rebounded back to eliminate most of the intraday’s losses. At the time of writing, the cable stays in negative territory with a 0.01% loss for the day, witnessing some fresh selling. The pair is having a difficult time making a decisive move in either direction ahead of Fed policymakers and BoE Governor Andrew Bailey’s speech this week. The upbeat US job data and renewed speculations for a larger Fed rate hike at the March policy meeting should undermine the British pound and keep a lid on the upside for the cable.

For technical aspect, RSI indicator 48 figures as of writing, suggesting that the downside appears more favored as the RSI sits below the midline. But the Bollinger Bands showed the pair is now rising from the lower band, therefore the pair should experience some upside movements. In conclusion, we think market will be slightly bullish as markets weigh on Fed/BoE tightening themes in the coming days. The cable might continue to flirt with the 1.3500-1.3600 area.

Resistance: 1.3608, 1.3687, 1.3739

Support: 1.3456, 1.3372

USDCAD (4-Hour Chart)

After last Friday’s rally to a weekly high above 1.278 level, the pair USD/CAD was surrounded by downside momentum today amid modest US dollar weakness. The pair remained under pressure most of the day and dropped to a daily low during American session, losing 0.60% on a daily basis. The bearish momentum witnessed in USD/CAD is caused by weaker US dollar, as the greenback suffered from a softer tone around the US Treasury bond yields. On top of that, the crude oil is now swinging between the $91.00-$92.00 area, remaining well supported by expectations that global supply would remain tight amid the conflict between Russia and Ukraine. The US/Iran nuclear negotiations would also be looked upon by investors.

For technical aspect, RSI indicator 44 figures as of writing, suggesting bear movement ahead. As for the Bollinger Bands, the pair crossed below moving average after moving out f the upper band, therefore the downside momentum should persist. In conclusion, we think market will be bearish as the pair is heading to test the 1.2622 support. The demand for oil might remain strong and acted as a headwind for the USD/CAD pair in the near-term, as many analysts also expect WTI to hit $100.

Resistance: 1.2791, 1.2829

Support: 1.2622, 1.2575, 1.2462

Economic Data:

Dear Client,

New contracts will automatically rolled-over as follows:

Please note:
•The rollover will be automatic, and any existing open positions will remain open.
•Positions that are open on the expiration date will be adjusted via a rollover charge or credit to reflect the price difference between the expiring and new contracts.
•To avoid CFD rollovers, clients can choose to close any open CFD positions prior to the expiration date.
•Clients should ensure that take profits and stop losses are adjusted before this rollover occurs.

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

Market Focus

Stocks shifted earlier losses to mostly rise Friday afternoon even as investors viewed a much stronger-than-expected jobs report as strengthing the case for the Federal Reserve to continue down its more hawkish monetary policy route. The S&P 500 went higher during intraday trading, closing up 0.52% at 4,500.61, while the Dow Jones lost steam to close at 35,089.15, slightly down 0.06%. The Nasdaq also rose by 1.58% to 14,098.01.

Inflationary pressures in the U.S. continued to heat up at the start of the year, data are expected to show, likely putting a Federal Reserve interest-rate increase next month on autopilot. The consumer price index (CPI) probably jumped 7.3% in January from a year ago, the largest annual advance since early 1982, according to the median projection in a survey of Wall Street economists. Excluding volatile energy and food categories, the core CPI is anticipated to have risen 5.9%.

The inflation data rose in tandem with the government’s latest employment report, which showed newfound momentum in the labor market and faster wage growth that spurred bets that the Fed will be more aggressive in raising rates.

It’s a light week for Fed-speak. The relative silence from Washington probably reflects the fact that both Powell and Governor Lael Brainard await Senate confirmation — Powell for another four years at the helm, and Brainard to become vice chair.

Elsewhere, Russia’s central bank may increase rates by 100 basis points, perhaps the biggest move in another week of anticipated global tightening by monetary officials from Poland to Peru.

Main Pairs Movement:

U.S. dollar traded mixed against its Group-of-10 peers in early Sydney trade Monday.

EUR/USD rises 0.1% to 1.1462; on Friday, spot posted its best week since March 2020, climbing 2.7%. AUD/USD adds 0.1% to 0.7081 after closing the day 1% lower in New York, trimming its weekly advance to 1.2%. NZD/USD quoted 0.4% lower to 0.6610 amid thin price action given that New Zealand markets are closed for a public holiday. USD/JPY steady at 115.29; closed up 0.3% on Friday for a second day of gains.

As to commodities, gold advanced 0.17% amid choppy trades on Friday, and sliver’s price action acted in line with the yellow metal, though with greater volatility, up 0.46% intraday. Crude oil prices continued to post fresh highs as the Ukraine-Russia conflict upgraded day-by-day. WTI surged 1.98% to $91.95, and Brent jumped 1.92% to $92.74.

Cryptocurrencies got a huge lift on Friday. Bitcoin skyrocketed 11.42% to $41574.25, while Ethereum mounted 11.11% to $2994.99.

Technical Analysis:

EURUSD (4- Hour Chart)

The EUR/USD pair edged lower on Friday, taking a break after previous day’s rally amid ECB President Christine Lagarde’s hawkish comments. The pair stayed relatively quiet during Asian session, flirting with 1.144~1.148 area. The pair was last seen trading at 1.1427, posting a 0.06% loss on a daily basis. EUR/USD stays in the negative territory amid the recovering US dollar, as the US Nonfarm Payrolls (NFP) beat estimates and rose by 467K in January, pushing the DXY index above the 95.50 level. The much stronger than expected job data provided support to the greenback and weighed on EUR/USD pair, which surrendered most of its daily gains. In Europe, the hawkish message from the ECB event yesterday might keep acting as a tailwind for the Euros, as investors now expect a potential ECB lift-off in September or December.

For technical aspect, RSI indicator 70 figures as of writing, suggesting that the pair is in overbought zone now, a rend reversal could be expected. Looking at the Bollinger Bands, the price dropped towards the moving average after touching the upper band, which indicates that the pair could remain its downside traction. In conclusion, we think market will be bearish as long as long as the 1.1479 resistance holds. The pair might need to make a technical correction before climbing higher.

Resistance: 1.1479, 1.1599

Support: 1.1284, 1.1196, 1.1132

GBPUSD (4- Hour Chart)

The pair GBP/USD declined on Friday, continuing to suffer from its heavy intraday losses following the release of the US Nonfarm Payrolls. The pair was surrounded by bearish momentum most of the day, dropping to a daily low below 1.3520 mark and snapped five days of the winning streak. At the time of writing, the cable stays in negative territory with a 0.51% loss for the day, witnessing some profit-taking movement. The Bank of England’s decision to raise the benchmark interest rate by 25bps to 0.50% had pushed the cable to its strongest level in two weeks at 1.362 yesterday. But BOE Governor Andrew Bailey said that rate hikes was mainly due to concerns about inflation, instead of the better UK economy.

For technical aspect, RSI indicator 47 figures as of writing, suggesting that the downside appears more favored as the RSI sits below the midline. Meanwhile the Bollinger Bands showed the pair had crossed below the moving average, therefore the downside momentum should persist. The MACD indicator also have a negative histogram. In conclusion, we think market will be bearish as the pair failed to break the 1.3608 resistance. The risk-off market mood and rebounding US dollar might continue to weigh on the pair in the near-term.

Resistance: 1.3608, 1.3739

Support: 1.3456, 1.3372

USDCAD (4- Hour Chart)

The pair USD/CAD remained its upside momentum on Friday, attracting some buying for the second successive day despite surging oil prices. The pair was trading higher in Asian session and soared above the 1.277 level after the release of US jod data, now looking steadily around weekly tops. The bullish momentum witnessed in USD/CAD is caused by renewed US dollar strength, as the pair is currently rising 0.67% on a daily basis. An uptick in US Treasury bond yields, along with the cautious market sentiment both extended some support to the USD/CAD pair. On top of that, the crude oil has reached seven-year highs at $93.00/barrel amid the winter storm that recently hit the US. The tensions between Ukraine and Russia also sent the black gold higher.

For technical aspect, RSI indicator 63 figures as of writing, suggesting bull movement ahead. But for the Bollinger Bands, the pair moved immediately back inside the band after moving out of the bands, therefore an downside movement could be expected. In conclusion, we think market will be slightly bearish as long as the pair struggled to break above the 1.2790 mark at the moment, appearing to run out of bullish momentum due to skyrocketing oil prices.

Resistance: 1.2790, 1.2941

Support: 1.2669, 1.2575, 1.2461

Economic Data:

Market Focus

US equities fell hard on Thursday as the markets renewed their previous optimism, driven by a slew of strong earnings, took a turn down after Facebook Meta Platforms’ disappointing earning report on Wednesday. The Dow Jones Industrail Average dropped 1.4% while the S&P 500 slided 2.4%, the first day in nearly a year. In the meantime, the tech heavy weighted Nasdaq fell 3.7% for its worst day since late 2020.

Bloomberg

On “Super Thursday,” European Central Bank decided to keep interest rates unchanged even though the most recent inflation figure has git a record 5.1%. The latest European Central Bank’s forecasts point to the inflation is 3.2% this year, which is above the target rate. The central bank believes that the inflation will be cool down followed by a promising hawkish pivot.

Meanwhile in the UK, the bank of England raised its interest rates for the second time in a quarter. The BOE decided to hike its rate to 0.5% from previous 0.25%. Having UK consumer prices rose to 5.4% in December, the highest in nearly 30 years, the BOE expected that the inflation rate will possibly peak at around 7.25%; the markets are now betting the BOE will hike its rate to 1.5% by mid 2023 in order to combat the inflation.

Main Pairs Movement:

GBPUSD’s bulls took a breather on Thursday, hitting as high as 1.36277 and up 0.04% at the end of the day. The British Pound was boosted as the Bank of England hiked the policy rates back-to-back to 0.5% from 0.25%. At the same time, the labor market in the UK remained robust, strengthening the Pound.

EURUSD was up 1.18% on Thursday, approaching January monthly high. The euro dollar outperformed following ECB President Lagarde’s hawkish comments, overturning from previous dovish stance.

Gold’s bulls were little affected by the Bank of England’s aggressive stance and the ECB’s hawkish comments on Thursday. Gold was once hitting as low as $1,788 and bouncing back above $1,800 at the end of the day.

Technical Analysis:

EURUSD (4- Hour Chart)

The EUR/USD pair declined on Thursday, continuing to retreat from a two-week high that touched earlier this week after four consecutive daily advances. The pair remained under pressure most of the day, dropping to a daily low below 1.1280 level during European session. The pair was last seen trading at 1.1278, posting a 0.21% loss on a daily basis. EUR/USD stays in the negative territory amid stronger US dollar across the board, as the DXY index reversed part of its recent pullback and climbed above 96.00. Despite the falling US bond yields, the greenback still managed to regain some upside momentum on Thursday. In Europe, market focus now shifts to ECB’s interest rate decision, which is expected to be unchanged but ECB President Christine Lagarde’s comments on the inflation outlook will be also watched closely.

For technical aspect, RSI indicator 55 figures as of writing, suggesting bull movement ahead. But looking at the Bollinger Bands, the price dropped towards the moving average after touching the upper band, which indicates that the pair could remain its downside traction. In conclusion, we think market will be bearish as long as the 1.1311 resistance holds. On top of that, the pair could face renewed selling pressure if the ECB continues to push pack against rate hike bets.

Resistance:  1.1311, 1.1424, 1.1479

Support: 1.1196, 1.1132

GBPUSD (4- Hour Chart)

The pair GBP/USD advanced on Thursday, gaining bullish momentum to climb above the 1.3600 mark after the key BoE event. The pair failed to keep its traction after yesterday’s rally to 1.3590 area, once touching a daily low during European session. But the Bank of England’s monetary policy decision lend strong support to GBP/USD. At the time of writing, the cable stays in positive territory with a 0.26% gain for the day, recovering most of its intraday’s losses. The Bank of England raised the benchmark interest rate by 25bps to 0.50%, which was in line with market expectations and marked the first back-to-back interest rate rises since 2004. Moreover, traders await for BOE Governor Andrew Bailey’s speech for fresh hints on future rate hikes.

For technical aspect, RSI indicator 70 figures as of writing, suggesting that the pair is in overbought zone now, a trend reversal could be possible. As for the Bollinger Bands, the pair rebounded and failed to cross below the moving average, therefore the upside momentum should persist. In conclusion, we think market will be bullish amid the rate hike by BoE. If the BOE is hawkish about the inflationary outlook of the economy, this might push the cable to break through the 1.3633 resistance and set the stage for a further near-term upside move.

Resistance: 1.3633, 1.3680, 1.3739

Support: 1.3372, 1.3185

USDCAD (4- Hour Chart)

After three successive days of the losing streak to a one-week low below 1.266 level, the pair USD/CAD regained upside momentum on Thursday. The pair was trading higher in Asian session and touched a two-day high above 1.2710 level, now retreating back slightly to surrender some daily gains. The bullish momentum witnessed in USD/CAD is mainly due to US dollar strength, as the pair is currently rising 0.14% on a daily basis. The dismal US ADP report released yesterday provide some support for the greenback to make a solid comeback. On top of that, the retreating crude oil prices has also weighed on the commodity-linked loonie and acted as a tailwind for the pair, as WTI oil declined 0.48% for the day.

For technical aspect, RSI indicator 47 figures as of writing, suggesting that the downside appears more favored as the RSI sits below the midline. For the the Bollinger Bands, the pair is falling towards the lower band, therefore an downside movement could be expected. In conclusion, we think market will be bearish as long as the 1.2694 resistance line holds. The USD/CAD pair seems lacking bullish momentum and struggled to find acceptance above the 1.2700 mark at the moment.

Resistance: 1.2694, 1.2782, 1.2829

Support: 1.2634, 1.2575, 1.2462

Economic Data:

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