On Friday (January 24) in Asian morning trading, the currency market was little volatile overall, with the dollar remaining firm and spot gold trading in a tight range around the 1560 mark. The market continues to focus on the outbreak of pneumonia in Wuhan.
According to People’s Daily, as of 23:00 on January 23, 639 cases of the new coronavirus pneumonia had been confirmed: 444 in Hubei. Huanggang, Ezhou, chibi, xiantao and Xinjiang, Hubei province, announced the suspension of urban public transportation in different degrees after the closure of Wuhan, Hubei province.
The world health organization decided on Thursday not to declare wuhan pneumonia a global health emergency after independent experts spent two days assessing information about the spread of the new coronavirus.
After the day’s meeting, the organization’s director-general said more information was needed before a decision could be made. As a result, the group’s emergency committee will continue to discuss the issue on Friday.
This trading day, in addition to continuing to focus on the new coronavirus outbreak in Wuhan, the market also needs to pay attention to today’s series of European and American PMI data, which may trigger short-term market volatility.
Valeria Bednarik, the chief analyst at FXStreet, wrote a brief analysis of the day’s moves in the euro, sterling, yen and Australian dollar.
The euro started the session above overnight lows against the dollar and could continue to fall.
Not only did it close below the static resistance level of 1.1065, but the 4-hour chart shows that it fell sharply after repeatedly failing to break the bearish 20-session moving average. The 20-period moving average continues to fall below the larger moving average level.
Meanwhile, technical indicators are steadily lower and RSI is oversold.
The next relevant support level is 1.0980, a low since late November, below which it would extend its decline to a 2019 low of 1.0878.
Support: 1.1020 1.0980 1.035
Resistance level: 1.1065 1.1100 1.1140
Pounds per dollar
The pound failed to extend its rally to $1.3150, the 38.2 percent retracement of its late-December decline, which peaked around $1.3150 this week.
The 4-hour chart shows that while the exchange rate is still above all moving averages, attempts to build around Fibonacci resistance have repeatedly failed.
However, these durations are short and reflect a lack of clear trends. Technical indicators fell but remained positive, suggesting selling pressure is limited for now.
Support: 1.3080 1.3040 1.3000
Resistance level: 1.3150 1.3185 1.3215
According to the 4-hour chart, USD/JPY is bearish, trading around 109.40.
It is well below the current bearish 20-issue average and hovering near the 100-issue average for the first time in two weeks.
When the RSI starts to decelerate around 24, the momentum indicator starts to fall at new weekly lows, but the risk remains tilted to the downside.
Support: 109.20 108.90 108.65
Resistance level: 109.70 110.05 110.40
Australian dollar/us dollar
On the technical side of the 4-hour chart, the Aussie/USD is bearish as it runs below all averages and the 20-phase average is significantly lower than the larger averages.
: technical indicators fell from the neutral level, momentum declined, and the RSI held steady at around 42, all of which tend to fall further, especially after falling below the 0.6800 level, which is now short-term support.
Support: 0.6800, 0.6770, 0.6730
Resistance level: 0.6890 0.6920 0.6950