Intraday Technical Analysis 9 January

The U.S. dollar made modest gains to recover from Monday’s losses. The markets had support from the ongoing trade talks between the U.S. and China with both parties making progress on the purchase of U.S. goods and services.

The next round of cabinet-level talks will happen later this month.

Economic data on the day was relatively sparse. Germany’s industrial production figures showed a 1.9% decline on the month. This was worse than the forecasts of a 0.3% increase and comes on back of a revised 0.8% decline from the month before.

The data follows a weak patch after earlier in the week, factory orders also slowed, sparking concerns on a slowdown in the Germany economy.

The NY trading session saw Canada trade deficit widening in the month of November. The trade deficit increased on a drop in crude oil exports. A trade deficit of 2.06 billion was posted for the month against median forecasts of a deficit of 2.15 billion.

The economic calendar today starts off with the German trade balance figures coming out. The trade balance should increase to 17.6 billion. Switzerland’s inflation data coming out later is forecast to decline 0.2%. This marks a decline from 0.3% previously.

The NY trading session will see investors turning to the Bank of Canada’s monetary policy meeting. The BoC is forecast to raise interest rates by a quarter basis point at today’s meeting. This would bring Canada’s interest rates to 2.0%.

Later in the day, the Bank of England Governor, Mark Carney will be speaking. The BoE governor’s speech comes as the UK continues to negotiate the Brexit terms.

Later towards the close of the day, the FOMC meeting minutes will be coming. The Fed meeting minutes will cover the FOMC meeting from December where the Fed hiked interest rates by a quarter basis point.

EURUSD intraday analysis

EURUSD (1.1459): The euro currency maintained the gains on Tuesday as price action recovered from the modest declines to inch back higher to the resistance level of 1.1461. With a repeated test of the resistance level, the EURUSD should stay within the range. Although the bias of a breakout to the upside is building, today’s Fed minutes could potentially provide the catalyst for the euro currency’s upside breakout. However, if the minutes turn out to be more hawkish then expected, the common currency could slip back and continue its sideways range.

AUDUSD intraday analysis

AUDUSD (0.7154): The Australian dollar has been advancing at a steady pace, and price action is trading close to the main resistance level of 0.7191. A retest of this resistance level could cap the gains in the short term. A modest correction to the short term rally in the AUDUSD currency pair could be on the cards. In the near term, as long as the resistance of 0.7191 holds, the Aussie dollar could be seen trading sideways. The lower support at 0.7022 remains a key level which could be tested to the downside.

XAUUSD intraday analysis

XAUUSD (1282.24): Gold prices eased from the highs, but the momentum has remained weak. A brief retest of the 1280 handle saw prices rising up slightly. However, price action quickly settled lower, and the precious metal is once again attempting to test the 1280 handle. If the support gives way, gold prices could push lower with the 1250 handle the next target. To the upside, there is the scope that gold prices could post a rebound which could potentially see prices once again targeting the 1300 level which has remained elusive so far.