Rosen's Daily Commentary

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EUR/USD is trading relatively unchanged today gravitating towards 1.0625. The pair would face high volatility this week due to important financials tomorrow and on Wednesday.

 

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USD/JPY is in the middle of its downward short-term trend in today's preopen European hours. The pair is now 113.68 and is caught between support at 112.00 and resistance at 115.00. The trend shows that the pair progressively weakens and therefore we can expect the resistance to change the direction back from the correction wave to the downside.

However, we should not undermine market's strength amid strong US expectations and so, USD/JPY can make an attempt to go above short-term resistance and reach mid-term resistance at 118.60.

We don't have any major news scheduled for today, but the next two days are packed with financials such as Chair Yellen's speech before senate on Tuesday and the Consumer Price Index on Wednesday.

 

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EUR/USD looks more optimistic as we enter into the European session today. The pair is now 1.0623 as we have exciting news later today - a speech by Chair Yellen.

 

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CAD/JPY is trading right about between resistance and support in the shot-term outlook. The pair registered a move to the upside in the beginning of the month and has now reached immediate resistance in the face of 87.00

Short-term resistance is seen at prior highs at 88.80, while short-term support awaits at 84.78, the two latest lows.

The pair is expected to continue trading in that range due to low volatility and fundamentals. During the consolidation period, market participants would most probably wait for a break out of either sides before making their decision. However, the predominant trend is bullish with strong resistance at 89.00.

 

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EUR/USD is lower today due to Yellen's speech yesterday. The hawkish tone drove investors back to the US currency and now EUR/USD is trading at 1.0555.

 

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Fed Chair Janet Yellen made a statement yesterday that FED policy makers don't need to wait on Trump's tax cuts in order to raise rates. She also made the announcement that there would be three raise rates this year, the first could be expected in March.

The speech gave the markets a wake up call as bonds sold off and US equities rallied to new highs.Dow Jones reached 20,535 and the S&P reached 2,338.

The hawkish attitude towards the market could be regarded as concerning to the risk management in infrastructure spending, tax reduction and Trump's policy implementations.

Yellen will be questioned today on House Committee.

 

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EUR/USD reached a high of 1.0640 and is now trading close to intraday high at 1.0633. The pair made a move to the upside today and yesterday and now first resistance is seen at 1.0670.

 

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USD/JPY continued to trade in the descending channel on the short-term outlook. The pair registered a high of 114.92 earlier this week and is now trading at 113.70. The downtrend appears to be intact as market participants chose to follow the pattern and stay in the channel.

In light of this, if the scenario plays out, we should see the pair reach the lower line of the channel before long. What would aid the process is negative US fundamentals. If the fundamentals are in favor of the pattern, price should reach below 112.00.

On the other hand, US dollar bulls are ready to take it higher with the support of positive fundamentals. Until the end of the week, no major news are scheduled, except the US initial jobless claims that would be released tomorrow.

 

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EUR/USD reached a high of 1.0680 earlier today and is now trading at 1.0650. Important news are scheduled for later today.

 

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GBP/JPY reacted strongly to fundamentals today and reached a low of 139.62. The pair is now trading at 140.25 as the predominant bullish trend looks broken. A move to the downside can be expected.