Intraday Forex Thursday, December 31 (EURUSD, USDJPY, etc.) Sterling & euro extended gains, while dollar weakened as demand for safe-havens flagging.

This observation is made around 4:30 UTC today, with 30 minutes time frames. The Resistance and Support Line were constructed according to Fibonacci retrenchment. Any discussion is welcomed.

Asian shares entered the final trading day of 2020 by hovering near record highs, as investors stick to a bullish view overall, betting on a strong economic recovery next year, with ongoing rollout of coronavirus vaccines and hopes of bigger fiscal and monetary aids buoyed sentiment.

The dollar fell broadly against many currencies on Thursday. Hit its weakest level in more than 2-years against the euro, sterling, the Australian and the New Zealand dollars, while crashed to the lowest in more than 5-years against the Swiss franc.

I also does analysis for some other currencies. Read more on the website on TECHNICAL ANALYSIS and DAILY MARKET NEWS.

[EURUSD]

  • The euro steamed ahead to $1.2309 overnight, having hit its highest since April 2018 with a gain of 10% for the year.
  • On Thursday, the euro stand firm, just below the $1.23 mark at $1.2290.
  • The pair pushed high on dollar weakness, while Eurozone political uncertainty reduced as the EU-UK sign the Brexit trade deal and as the Eurozone started the vaccine distribution in the week.
  • The euro also garnered support after the EU and China announced an agreement to open the Chinese market further to the EU. The two-way goods commerce valued at more than 1 billion euros ($1.2 billion) a day.
  • The pact expands access to the Chinese market for EU investors in industries ranging from cars to telecommunications, while addresses Chinese policies on industrial subsidies, state control of businesses, and forced technology transfers.
  • The dollar under pressure on month-end and year-end position squaring as investors favoured the riskier currencies.

Important Levels to Watch for:​

  • Resistance line of 1.23230 and 1.23460.
  • Support line of 1.22488 and 1.22258.

[USDJPY]

  • USD/JPY traded flat at 103.166 on Thursday.
  • Trade is expected to be thin in Asia with Japan and South Korea on holiday.
  • Overnight, the pair dropped to a 1–1/2 week low and is just above the 9–1/2-month low from December 17.
  • Demand of safe haven currencies weakened as risk sentiment improved in the wake of Britain’s trade deal with the EU and on the U.S. President’s decision to pass dollar-negative pandemic stimulus programs.

Important Levels to Watch for Today:​

  • Resistance line of 103.618 and 103.868.
  • Support line of 102.809 and 102.560.

[USDCHF]

  • Against the Swiss franc, the dollar retreated 0.8820.
  • USD/CHF touched the weakest in more than 5-years earlier today 0.8806.
  • The riskier currencies gained ground on the prospects of increased U.S. fiscal aid and Brexit trade deal. More stimulus for the world’s largest economy generally will reduces demand for the perceived safety of holding the greenback.

Important Levels to Watch for Today:​

  • Resistance line of 0.88559 and 0.88747.
  • Support line of 0.87949 and 0.87761.

[GBPUSD]

  • Sterling jumped earlier today to its highest since May 2018, as lawmakers approved a post-Brexit trade deal with the EU. The pound stretched as far as $1.36489.
  • The pound last hold steady at $1.3617.
  • Britain and EU look to new chapter as final hurdles to Brexit clear. The new partnership agreement will regulate ties from Jan 1 on everything from trade to transport, energy links, and fishing.
  • Optimism over vaccine rollouts also boosted after Britain approved the emergency use of AstraZeneca/Oxford COVID-19 vaccine, which will start being administered on Monday.
  • Meanwhile, the U.K. government outlined plans to impose stricter coronavirus restrictions on millions of people across England as a new strain of the virus spreads across the country.

Important Levels to Watch for Today:​

  • Resistance line of 1.37230 and 1.36695.
  • Support line of 1.34965 and 1.34430.

For more currencies analysis and other insight into the market, read more on the WEBSITE or click on TECHNICAL ANALYSIS and DAILY MARKET NEWS.

Merry Christmas and Happy New Year!!​

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Chief Analyst at Golden Brokers. https://goldenbrokers.my/en/blog

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Zulbahri Muhammad

Zulbahri Muhammad

Chief Analyst at Golden Brokers. https://goldenbrokers.my/en/blog

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