Central banks and politics could cause turmoil, but no longer can spur growth. Growth is far worse than what the numbers show, recession at risk of materializing.
The AUD/USD pair stalled its three-day losing streak and attempted a minor recovery from two-week lows of 0.7115, as the AUD bulls were rescued by a renewed uptick in its OZ neighbor, the NZD, after New Zealand’s Q4 CPI surpassed expectations.
The USD/JPY pair extended its sideways consolidative price action and was seen oscillating in a narrow trading band near the lower end of its daily trading range.
Signs of weakness appear while playing on the edge. ETH/USD must lead now or suffer for months. BTC/USD does not work for either side of the market.
The Bank of Japan makes its first rate decision for the year on Wednesday, January 23rd, late in the Asian session. The BOJ is projected to leave all policy measures unchanged.
SPECIAL YEARLY FORECAST
The European Union began 2018 in reasonable economic condition. Growth in the fourth quarter of 2017 had reached 2.8% annually, matching the best since the financial crisis.
The most rising value right now is patience. In a world where everything goes faster than our mind is capable of handling, patience is today a value that is not taught and even less praised. However, in professional trading, being patient is an asset as valuable as money.
Ethereum price on Tuesday holding very minor gains of 0.25%, as general caution continues. ETH/USD bears testing vital near-term support around $115 area, lower part of range-block.
Ripple's XRP price pops higher in the mid part of Tuesday, holding onto gains of 0.8%. Despite the interim minor volatility, XRP/USD is still trapped within a mundane daily range.
This year 2019 is going to be an essential one for Bitcoin without no doubt. After more than ten months of continuous falls, the next twelve months will be dicisive for the long-term future of Bitcoin.
ECB monetary policy decision and Markit PMIs to take center stage this week
The EUR/USD pair aims to close the week to the downside but within familiar levels, hovering around the 1.1400 level, not far from a weekly low of 1.1366. The common currency took a dive after a German report showed that the country's growth was the slowest in 5 years in 2018, just 1.5% up.
GBP/USD is trading marginally lower amid news that the UK Labour Party tabled a parliamentary motion that could open the door to a second EU Referendum, potentially averting Brexit.
The Technical Confluences Indicator shows that cable faces resistance at 1.2910 which is the convergence of the Pivot Point one-month Resistance 1, the Bollinger Band 4h-Middle, the Simple Moving Average 5-one-day, the SMA 200-15m, the SMA 100-one-day, the Fibonacci 23.6% one-day, and more.
Breaking above this level will allow GBP/USD to run higher, opening the road to 1.3004 where we see the Pivot Point one-day R3, and last week's high.
Looking down, Sterling has significant support at 1.2850 where we see the confluence of the Pivot Point one-day Support 1, the SMA 10-one-day, last month's high and also the SMA 200-1h, and the Fibonacci 61.8% one-day.
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