Technical Analytics Report

Daily Market Reviews 27 Dec. 2021




The European currency is getting traded in different multiple directions against the US dollar within the Asian trading session, combining close to  1.1320 and looking forward to new movement drivers. The activity of market participants remains low, as many of them prefer to wait for the New Year and are in no hurry to open new deals. One way or another, European investors are worried about the worsening epidemiological situation getting worse in the region, which may be negatively affecting the roadmap of economic recovery in the eurozone. Particularly, France last Thursday reported approximately 88000 new cases of coronavirus, which is the total and absolute record from the starting of the pandemic. At the same time frame of the new Omicron strain, even though it is considered as the most infectious and dangerous of all earlier identified variants, it is still not very dominant, which means the numbers may continue to shoot up alarmingly. The record was also prefixed in the UK, where approximately a total of 120 Knew cases of infection were detected in one single day.




The pound is very actively adding value within today’s morning trading session, again getting tested at 1.3400 for reaching a breakout. Within the end of last week, the British currency was already trying to accommodate a level above, Getting all the required support from the better performing monetary policy of the Bank of England; During, the downward movement on the market right before the Christmas holidays ultimately led to the development of rectified sentiments. Above that, the growth of GBP/USD is predictably restricted by the worsening of the epidemiological situation Within the UK, where the daily incidence records were updated regularly on a day to day basis. During this ongoing week, the publication of some macroeconomic statistics is not recorded, and activity on the market will be restricted by the upcoming New Year vacations. At present traders should pay close and focused attention to the data on the Dallas Fed Manufacturing Business Index for December, where market predictions are suggesting a sudden increase from 11.8 to 13.2 points.




The Australian dollar is showing a slow and little bit of an uptrend, recovering from the sudden decrease at the end of last week. On Friday, the instrument retreated and recovered from its local highs from November 22, reacting to the emergence of corrective and better sentiment right before Christmas. At the beginning of the week, all the activity on the market is recovering slightly, As many investors will be on vacation till the New Year holidays, and the macroeconomic calendar will be comparatively blank. The most important publications from the US will be shown only on Tuesday with the release of S&P/CaseShiller Home Price Indices, also on Thursday, when the traditional data about the market movements of jobless claims will be published for public discretion.




The American currency is remaining close to the upward movements of the local market from November 26, getting tested on the level of 114.50 for reaching a breakout. Market activity remains down due to the Christmas break, while investors are in no rush to get into new positions, trying to assess the prospects for the present epidemiological situation going on in the world. Many regions, including Asia, are showing a constant increase in new cases of coronavirus strain. It is noted that the new Omicron strain is not getting predictably dominant, though it is highly infectious. The yen at present is ignoring the strong macroeconomic statistics from Japan. The country’s Retail Sales rose to the level of 1.2% in October after rising 1.0% in the last month, while analysts are expecting growth to slow to 0.5%. In annual terms, sales volumes increased suddenly from 0.9% to 1.9%, which also turned out to be a little bit better than all the primary estimates at 1.7%.




Gold prices are showing a little bit of weak growth, showing development amidst the “bullish” dynamics that formed at the end of last week. Trading activity has been weak and recovering as many investors are staying out of the market after the Christmas holidays, Awaiting New Year. On the other hand, sudden alarming statistics on the incidence of coronavirus within the world provide limited support for the precious metal quotes. Particularly, the authorities from France and the UK in the last week announced a new record for daily cases of infection. Within the same time, the number of hospitalizations till now has not exceeded the borderline limits that were identified in the earlier waves of the epidemic. On the other hand, representatives of pharmaceutical giants AstraZeneca plc. and Novavax Inc hurried to slow down the market, noting that their vaccines can assure the proper level of protective shield against the new strain of the virus. On the other hand, the quotes of XAU/USD remained under pressure amidst a predictable tightening of monetary policy by the world’s leading central banks in the year 2022. The European Central Bank (ECB) and the US Federal Reserve announced further cut downs in their quantitative easing (QE) programs, while the Bank of England has decided to increase the interest rate.