FXORO Daily Market Brief 25.01.2022

FXORO Daily Market Brief 25.01.
2022
FXORO, Daily
Market Brief
17.01.2022
DISCLAIMER – Kindly note that the opinions contained in the trading signals / market briefs / market analysis are not
formulated by FXORO and do not constitute any opinion of FXORO but only reflect the current judgment of an independent
third party, which could change without notice and should not be interpreted in any way, explicitly or implicitly, directly or
indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument
FXORO Daily Market Brief 25.01.2022
The GOLD pulled back to the 1830 area, traders can expect more sideways moves, as
everyone is waiting for the FOMC meeting on Wednesday. A berak below the 1830 level
could target the 50 day EMA, which at this time is at the 1808 level. If the market could take
out the 1850 resistance, the 1875 handle could be the next target.
The EURUSD had initially pulled back yesterday, but turned around and showed signs of life
again. At this point it seems that the pair is simply trying not to get too far ahead of itself
ahead of the Federal Reserves’ meeting tomorrow. Today may be going to be a somewhat
slow session, but given enough time, the pair might show traders late on Wednesday just
2
how hawkish or dovish Jerome Powell is. It definitely will determine direction for the rest of
the week.
The GBPUSD has had a lot of technical damage from the last couple of sessions. It seems if
the pair breaks below yesterday's candlestick, the market will continue to go lower. It may
not happen, because of the FOMC meeting minutes coming tomorrow, until that it might just
stay put, probably will have a bit of noisy behavior, followed by a decisive move. At this
moment traders are favoring the downside, but everyone should see how the press
conference will affect the next few sessions.
The WTI crude oil is still battling the resistance at the $85 level, and at this point in time, it
most probably will continue to be the battlefield. The market already broke above, there is
nothing to suggest that it can't happen again, no reason not to continue higher. That being
said, the market is clearly overdone, a pullback makes a lot of sense. The panic-bid around
the US dollar certainly will have a lot to do with what comes next, the $80 level offers value,
and a bit of a floor for now, but that seems to be only in the short term.
The USDJPY keeps trying to stabilize at the current area, the 113.50 level is to pay attention
to, as a lot will come down to the next risk-on/risk-off decisions. Clearly, so far tge pair has
been in a very risk-off scenario, which is not a big surprise. For now traders have a situation
where the Japanese Yen is considered safer than the US dollar, while going forward, this
pair seems to be the less bad choice compared to other Yen related pairs, with the 112.50
level being the floor for the time being. There should not be some type of major fall, or
selloff, the pair may grind down towards that area.
The AUDUSD got hammered once again, finally breaking its channel's lower trendline. At
this point nothing shows that the pair is going to recover, it is clearly looking towards the 0.70
level, traders can expect some noise at the 0.71 level, but the bottom has clearly fallen out in
the short term. That being said, if the 0.70 level won't hold, lower areas are going to be
targeted. As the Aussie dollar is a proxy for risk, traders need to be careful and see how the
current risk-off attitude around the world will play out.
The US500 had a really wild session yesterday, the market got really sold off, while the
question is about the recovery the index made. What was that really about? It most probably
was about the FOMC meeting minutes on Wednesday, there are a lot of people out there
who are concerned if Powell will say something to save the markets. Because of that, today
may come relatively quiet, maybe even a bit of bullish behavior is happening, but the real
test is coming on Wednesday. With that, and because of the inflation, traders anticipate a
short term "pop", then a selloff.
The NASDAQ is just the same as the S&P500, but as the index had fallen so far, it has to
get a rally sometime. If anyone wants to get involved with a long position, that is fine, but it
must be a smaller size. Cleary, the negativity is over the top, while it is hard to say if the
benchmark will hold. The 200 day EMA could be giving some trouble on the way to a
recovery, right along with the 15,000 level. Again, it all will come down to the FED's
announcements tomorrow, with that, traders will need to pay attention to the details,
because if the FED is even just a little less hawkish than expected, it could result in a nice
rally on the indices markets.
The SILVER had collapsed yesterday, the market is down about 2.9%, it is very likely that
traders will see a test at the $23.50 level. That may come with some sort of rally, but traders
are looking for exhaustion to sell into on short term charts. If the market simply falls through
the $23.50 level, the $22 handle would be targeted. Keep in mind, there is too much risk-
aversion going on right now that traders can expect that the Silver is going to do well. We
can even draw a downtrend line above, which suggests a very negative looking market for
the near future, so giving some time to see what the next moves are going to be is the right
decision.
FX Tidbits
The AUDCHF is taking advantage of the current risk-off global attitude, bears are continuing
to be in control.
The NZDJPY bears are using the Yen's "safe haven" behaviour to keep control, with plenty of
space below to fall into.
The USDHUF bulls are not giving up control, there is a lot of room above to fill, at least until
tomorrow's FOMC meeting.
The AUDCAD bears are trying hard to take control, the pair favors scalp traders, both
currencies are weak for now.

FXORO Daily Market Brief 25.01.2022

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