Intraday Technical Analysis 02 January

Manufacturing PMI's dominate the economic calendar today

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The markets wake up to a new trading day of the year with the holiday season behind. Economic data picks up pace covering the latest for the month of December.

In the early Asian session today, China’s Caixin manufacturing PMI showed that activity in the sector fell to 49.7 in December. Economists forecast a reading of 50.3 and manufacturing activity registered 50.2 the month before.

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The European trading session will see the release of the regional manufacturing PMI’s. The eurozone’s final manufacturing PMI is forecast to remain steady at 51.4, unchanged from the previous month. In the UK, manufacturing activity is expected to slow a little to 52.6 compared to 53.1 registered in November.

The NY trading session is relatively quiet with only Markit’s manufacturing PMI due. Economists forecast that the final manufacturing PMI in the U.S. was to be unchanged at 53.9 in December.

EURUSD intraday analysis


EURUSD (1.1447): The EURUSD currency pair was seen attempting to retest the resistance area around 1.1461 level. Price action is seen easing back from this level, but the bias is likely to remain to the upside. The ascending triangle pattern potentially indicates that a successful breakout above 11461 could push the currency pair toward testing the highs of the 1.1600 region. To the downside, if the resistance holds, then the common currency could be testing the minor rising trend line. A break down below this trend line could shift the bias to the downside.

AUDUSD intraday analysis


AUDUSD (0.7018): The Australian dollar was seen easing back as the currency pair tested the previously established lows at 0.7022. The consolidation at the current lows could potentially indicate a bottom formation in price action. Price action needs to breakout above the interim pivot high formed at 0.7055 in order to confirm a correction toward 0.7191. Alternately, if the support at 0.7022 fails to hold the declines, the AUDUSD could be seen settling lower, close to 0.7000 level. Watch the Stochastics oscillator which could potentially be forming a bullish divergence.

XAUUSD intraday analysis


XAUUSD (1283.92): Gold prices, after a bit of consolidation near the 1280 handle was seen pushing higher at the time of writing. However, a strong close above the 1280 region is required to keep the bias to the upside. The next main upside target in gold comes in at the 1285 handle. But failure to post support near 1280.00 could potentially weaken the upside bias. In the event of a close below the 1280 handle, gold prices could be at risk of correcting to the 1250 handle where support is yet to be formed.



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