Intraday Technical Analysis 8 January

The U.S. Dollar traded weaker on Monday amid a host of mixed data. From the Eurozone, the Sentix investor confidence report showed a decline in the index for the fifth consecutive month. The index fell to -1.5 in January while the current situation index declined to 18 marking a one year low.

Germany’s factory orders report showed a decline in activity for the first time in four months in November. Factory orders went down 1.0% on a seasonally adjusted basis and were more than the median estimates.

Data from the United States showed that the ISM’s non-manufacturing PMI declined to 57.6 in December after rising to 60.7 in November. All significant sub-components of the services sector also showed a decline.

The economic data today will see the release of the German industrial production figures. Economists forecast industrial production to rise 0.3% following a decline of 0.5% previously.

From Canada, the trade balance figures will be public, and economists forecast trade balance to rise by 1.9 billion. Trade balance figures from the United States will be coming out later and is expected to show an increase to 54 billion.

EURUSD intraday analysis

EURUSD (1.1441): The EURUSD currency pair was seen posting gains on Monday. Although the overall trend remains flat, price action rallied back to the resistance area of 1.1461, retesting the level for the fifth time. As long as the resistance level is not breached, the Euro is expected to remain range bound. On the daily chart, there are signs that price action is maintaining the ascending triangle pattern which indicates a potential upside breakout in prices. The next main target above 1.1461 resistance is 1.1575.

AUDUSD intraday analysis

AUDUSD (0.7128): The AUDUSD currency pair maintained the gains, but price action turned flat around the 0.71300 level. This could potentially signal correction to the short-term rally. The previously breached resistance/support level at 0.7022 remains a key level of interest to the downside. As long as this support holds, we can expect the AUDUSD to form a bottom with the bias turning to the upside. The resistance level at 0.7191 remains the next main resistance level targeted in the short term.

XAUUSD intraday analysis

XAUUSD (1282.57): Gold prices attempted to rally off the 1280 support only to form a lower high. Following this, price action pushes lower. A retest of the 1280 handle is quite likely. As long as the support holds, we can expect gold prices to maintain the gains with a possible retest back to the highs. Alternately, failure to hold the support at 1280 could trigger a potential decline to the 1250 handle where support is pending retest.