Daily Forex Analysis 09 JAN

XAUUSD fell short of breaking the weekly resistance zone

Divergence on the MACD signals possible short trade which would indicate a small correction within the bigger market structure.

CADJPY has reversed from an ascending trendline and off the weekly support zone . Price is also showing divergence on the MACD and has the potential to trade towards the weekly resistance zone area before continuing to the downside.

USDZAR 1 Hour Time Frame
1. Bullish divergence 1HR
2. Break of bullish flag

On the Daily time frame, we have seen a pullback to support which price is currently trading on. Further to any news, we should see USDZAR continue its Bullish momentum with the first target at the Fibb levels on 1-hour time frame.

EURNZD – 2hour timeframe:

Price broke out of an ascending channel and it’s currently making a bearish corrective structure. Price is showing Divergence in the MACD which indicates a possible reversal in the direction of the trend. I will be waiting for a break out of the bearish corrective structure to confirm the down move towards the Daily support level

The Bank of England

The Bank of England is the central bank of the United Kingdom. It was established in 1694 and was privately owned in the beginning, the Bank was nationalized in 1946 so now is completely owned by the UK government. BOE’s main reason to be is to maintain monetary and financial stability in the country. Some of its other tasks are producing secure bank notes, operating asset purchase facility and keeping the inflation low and stable.

The European Central Bank (ECB)

The European Central Bank (ECB) is the central bank empowered to manage monetary policy for the Eurozone and maintain price stability so that the euro’s purchasing power is not eroded by inflation. The ECB aims to ensure that the year-on-year increase in consumer prices is less than, but close to 2% over the medium term. Another of its tasks is the one of controlling the money supply. The European Central Bank’s work is organized via the following decision-making bodies: the Executive Board, the Governing Council, and the General Council. Mario Draghi, a member of the Executive Board, is also the President of this organism.

The Federal Reserve Bank (Fed)

The Federal Reserve System (Fed) which is the central banking system of the United States. Fed has two main targets: to keep unemployment rate to their lowest possible levels and inflation around 2%. The Federal Reserve System’s structure is composed of the presidentially appointed Board of Governors, partially presidentially appointed Federal Open Market Committee (FOMC). The FOMC organizes 8 meetings in a year and reviews economic and financial conditions. Also determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth.

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