Intraday Forex Friday, December 10 (EURUSD, USDJPY, etc). Dollar headed for weekly gain. Omicron COVID-19 variant spooks market.


Hi everyone. This observation is made around 06:40 UTC today, with 30 minutes time frames. The Resistance and Support Line were constructed according to Fibonacci retrenchment. Any discussion is welcomed.

Shares slipped and the dollar held firm on Friday as investors assess risks associated with the renewed concerns about COVID-19 and ahead of key U.S. inflation data that could set direction on Federal Reserve rates.
Traders waiting ahead of U.S. CPI data due at 1330 GMT. A higher-than-expected reading would strengthen the case for a policy tightening decision at the U.S. central bank's meeting.

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  • The euro stayed under pressure, traded at $1.12976 on Friday after dropped 0.4% overnight, and en route for about 0.13% weekly loss.​
  • A further rise in the U.S. Treasury bond yields, along with the cautious market mood drove some haven flows back towards the greenback. The yield on the benchmark 10-year U.S. government bond shot back above the 1.50% threshold amid firming expectations for a faster policy tightening by the Fed. Investors seem convinced that the Fed will hike interest rates sooner rather than later on worries about the persistent rise in inflationary pressures.​
  • The euro was weighed on concern the spread of the Omicron COVID-19 variant will prompt more countries to impose travel restrictions that curb economic activity, while dollar saw some safe-haven demand on the matter.​
  • Weakness in stocks today also boosted liquidity demand for the dollar.​
Important Levels to Watch for Today:​
  • Resistance line of 1.14077 and 1.14646.​
  • Support line of 1.12236 and 1.11666.​

  • The pair is trading nearly flat on Friday with the price action reflecting similar movement in U.S. Treasury yields. Mixed signals regarding the Omicron COVID-19 variant may be the catalysts behind the choppy, two-sided trade.​
  • The dollar was changing hands at 113.528 per yen.​
  • The USD/JPY pair trades within sideways track between 113.222 support and 114.058 resistance, thus, we will continue with our neutrality until the price confirms breaching one of these levels, waiting to detect the next targets clearly.​
  • Divergent monetary policies continued to influence the currency’s movement, as hawkish signals from the Fed contrasted with the BoJ’s firm commitment to retain easy monetary policies to achieve its 2% price stability target. BoJ deputy governor Masayoshi Amamiya on Wednesday said that there was no need for the central bank to tweak its ultra-loose policy with inflation “well below” its 2% target.​
Important Levels to Watch for Today:​
  • Resistance line of 114.058 and 114.316.​
  • Support line of 113.222 and 112.964.​

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