USD Overview (23 December 2021)Yesterday, USD weakened against most major currencies except JPY.
The Final GDP q/q data (Actual: 2.3%, Forecast: 2.1%, Previous: 2.1%) released yesterday indicated a slight upwards revision to the economic growth data from the preliminary release.
Also, the Conference Board Consumer Confidence data (Actual: 115.8, Forecast: 111.1, Previous: 111.9 revised from 109.5) released indicated that the surveyed households are get more optimistic on the current and future economic conditions in the U.S.
The Core PCE Price Index m/m data (Forecast: 0.4%, Previous: 0.4%) will be released later at 2130 (GMT+8).
Also, the New Home Sales data (Forecast: 770K, Previous: 745K) will be released later at 2300 (GMT+8).
Macro
Where we sunk in quicksand on 12/4, we found bedrock on 12/21.Granted, there was nearly a 3x difference in the amount of volume between these candles' volume ($6.5M vs $2.5M), the price fluctuation is an order of magnitude less volatile. What this suggests to me is that the market has determined this sell off was either premature or dramatically oversold.
Zooming out, it appears XRP has just been primed for a strong rally, back to around $1.25-$1.32 by Friday. I'm skeptical that we will break into/above the $1.38-$1.44 region on this leg up. It seems far more likely that we'll reject off the 10 year fib channel's .382 range. We will likely remain rangebound between $0.90-$0.98 & $1.32 going into the New Year.
There's a strong case to be made that we should see continuation to the upside, after the end of Fiscal year 2022, as wash traders will no longer have an incentive to suppress prices, to exploit tax loopholes regarding wash trading, which rules still do not apply to the crypto industry at large. This is both why I am skeptical that we will break bullish (above $1.38) before the EoY, but also why I am skeptical that crypto's current bull cycle will be seen as having ended in 2021.
Like many reputable investors/long term speculators I'm of the volition that the crypto bull cycle will see renewed fervor in Q1 2022, which will likely extend deep into Q3 before peak euphoria becomes blatantly visible. There's entirely too many variables which are providing tailwinds for the market to see continued growth, even in the face of a potential FED tightening. This is largely due to the inevitable flow of funds from (propped up) markets, into main street, which will drive wage growth, price inflation & pro-crypto/hard asset sentiment among the general population.
This is not a time to be short sighted and fearful, but a time to be forward thinking & pro-active in preserving what wealth we have from the ever-more-apparent inflationary pressures which are bursting from every orifice of economies around the world.
EUR/JPY Outlook (22 December 2021)Overall, EUR/JPY is ranging across. Recently, EUR/JPY broke the resistance zone of 128.500.
The eurozone Consumer Confidence data (Actual: -8, Forecast: -8, Previous: -7) released yesterday indicated a slight increase in the level of pessimism from the surveyed consumers on the future economic conditions of the eurozone countries.
EUR/JPY’s next support zone is at 128.500 and its next resistance zone is at 130.000.
Look for short-term buying opportunities of EUR/JPY.
GBP/JPY Outlook (22 December 2021)Overall, GBP/JPY is trending downwards. Recently, GBP/JPY traded into the resistance zone of 151.000.
The UK Final GDP q/q data (Forecast: 1.3%, Previous: 1.3%) will be released later at 1500 (GMT+8).
Currently, GBP/JPY is testing the resistance zone is of 151.000 and its next support zone is at 148.900.
Look for short-term buying opportunities of GBP/JPY if it breaks the resistance zone of 151.000.
USD/CAD Outlook (22 December 2021)Overall, USD/CAD is trending upwards.
The Canadian retail sales data released yesterday indicated continued increase in consumer spending at a faster rate in October than in September.
Core Retail Sales m/m (Actual: 1.3%, Forecast: 1.6%, Previous: 0.2% revised from -0.2%)
Retail Sales m/m (Actual: 1.6%, Forecast: 1.0%, Previous: -0.3% revised from -0.6%)
Currently, USD/CAD is testing the support zone of 1.29000 and its next resistance zone is at 1.31500.
Look for short-term buying opportunities of USD/CAD if it bounces off the support zone of 1.29000.
GBP/USD Outlook (22 December 2021)Overall, GBP/USD is trending downwards. Recently, GBP/USD bounced off the support zone of 1.33200.
The UK Final GDP q/q data (Forecast: 1.3%, Previous: 1.3%) will be released later at 1500 (GMT+8).
GBP/USD’s next support zone is at 1.32200 and its next resistance zone is at 1.33800.
Look for short-term buying opportunities of GBP/USD.
EUR/USD Outlook (22 December 2021)Overall, EUR/USD is ranging across. Recently, EUR/USD bounced down from the key level of 1.13.
The eurozone Consumer Confidence data (Actual: -8, Forecast: -8, Previous: -7) released yesterday indicated a slight increase in the level of pessimism from the surveyed consumers on the future economic conditions of the eurozone countries.
EUR/USD’s next support zone is at 1.12000 and the next resistance zone is at 1.13900.
Look for short-term selling opportunities of EUR/USD.
USD/JPY Outlook (22 December 2021)Overall, USD/JPY is ranging across. Recently, USD/JPY broke above the key level of 114.
Bank of Japan Governor Kuroda will be speaking tomorrow at an undisclosed timing.
Currently, USD/JPY is testing to break below the key level of 114. Its next support zone is at 112.800 and the next resistance zone is at 115.300.
Look for short-term buying opportunities of USD/JPY if it bounces up from the key level of 114.
NZD/USD Outlook (22 December 2021)Overall, NZD/USD is trending downwards. Recently, NZD/USD bounced up from the key level of 0.67.
Currently, NZD/USD is trading towards the resistance zone of 0.67900 and its next support zone is at 0.65400.
Look for short-term selling opportunities of NZD/USD if it bounces off the resistance zone of 0.67900.
USD Overview (22 December 2021)Yesterday, USD weakened against most major currencies except JPY and CHF.
The Final GDP q/q data (Forecast: 2.1%, Previous: 2.1%) will be released later at 2130 (GMT+8).
Also, the Conference Board Consumer Confidence data (Forecast: 111.1, Previous: 109.5) will be released later at 2300 (GMT+8).
AUD/USD Outlook (21 December 2021)Overall, AUD/USD is ranging across.
In the released monetary policy meeting minutes earlier today, the Reserve Bank of Australia highlighted that it will continue to maintain a highly supportive monetary conditions. Also, the central bank will not be hiking interest rate until inflation is within its 2-3% target range.
Currently, AUD/USD is testing the support zone of 0.71000 and the next resistance zone is at 0.73000.
Look for short-term selling opportunities of AUD/USD if it breaks the support zone of 0.71000.
EUR/JPY Outlook (21 December 2021)Overall, EUR/JPY is ranging across. Recently, EUR/JPY broke above the key level of 128.
The eurozone Consumer Confidence data (Forecast: -8, Previous: -7) will be released later at 2300 (GMT+8).
EUR/JPY’s next support zone is at 127.200 and its next resistance zone is at 128.500.
Look for short-term selling opportunities of EUR/JPY only when it trades below the key level of 128.
GBP/JPY Outlook (21 December 2021)Overall, GBP/JPY is trending downwards. Recently, GBP/JPY broke below the key level of 150.
Currently, GBP/JPY is testing to break above the key level of 150. Its next support zone is at 148.900 and the next resistance zone is at 151.000.
Look for short-term selling opportunities of GBP/JPY if it bounces down from the key level of 150.
USD/CAD Outlook (21 December 2021)Overall, USD/CAD is trending upwards. Recently, USD/CAD broke the resistance zone of 1.29000.
The Canadian retail sales data will be released later at 2130 (GMT+8).
Core Retail Sales m/m (Forecast: 1.7%, Previous: -0.2%)
Retail Sales m/m (Forecast: 1.0%, Previous: -0.6%)
USD/CAD’s next support zone is at 1.29000 and its next resistance zone is at 1.31500.
Look for short-term buying opportunities of USD/CAD.
USD/JPY Outlook (21 December 2021)Overall, USD/JPY is ranging across.
The Bank of Japan will be releasing the minutes for the recent monetary policy meeting tomorrow at 0750 (GMT+8).
USD/JPY’s next support zone is at 112.800 and the next resistance zone is at 115.300.
Look for short-term buying opportunities of USD/JPY.
EUR/USD Outlook (21 December 2021)Overall, EUR/USD is ranging across. Recently, EUR/USD bounced down from the key level of 1.13.
The eurozone Consumer Confidence data (Forecast: -8, Previous: -7) will be released later at 2300 (GMT+8).
EUR/USD’s next support zone is at 1.12000 and the next resistance zone is at 1.13900.
Look for short-term selling opportunities of EUR/USD.
NZD/USD Outlook (21 December 2021)Overall, NZD/USD is trending downwards.
Currently, NZD/USD is testing to break below the key level of 0.67. Its next support zone is at 0.65400 and the next resistance zone is at 0.67900.
Look for short-term selling opportunities of NZD/USD if it breaks below the key level of 0.67.
GBP/JPY Outlook (20 December 2021)Overall, GBP/JPY is trending downwards. Recently, GBP/JPY broke the support zone of 151.000
The UK Retail Sales data (Actual: 1.4%, Forecast: 0.8%, Previous: 1.1% revised from 0.8%) released last Friday indicated that consumer spending rose more than expected in November.
Currently, GBP/JPY is trading down towards the key level of 150. Its next support zone is at 148.900 and the next resistance zone is at 151.000.
Look for short-term selling opportunities of GBP/JPY if it breaks below the key level of 150.