With strong movements, the year was inaugurated, presenting some currencies, the futures of the stock indices, and the maximum raw materials of a long time. However, what looked like a new dollar crash stopped quickly, just starting the American session, with a banknote that slowly began to regain positions.
Clearly, it is premature to say that we are facing a change of trend. In fact, both the euro, the pound sterling, and the yen are again on the rise at this time, although in all cases their strength is not as strong as in the last days of last week.
The euro will need to clearly exceed its Monday highs by 1.2308, to aim at least 1.2330, a price it has traditionally struggled to surpass, both upward and downward. The last time the euro transited these areas was in the first months of 2018.
The British pound is again under heavy pressure. While Brexit ended somewhat calmly (the consequences have not yet begun to be seen, and Coca-Cola’s announcement that it is withdrawing from the UK to settle in the Netherlands should be a wake-up call), the pound failed to hold at 1.3700, a level he touched the first thing on the eve, to fall hard later. Boris Johnson’s government’s announcements of a nationwide total quarantine due to the exponential growth of virus cases left Johnson no alternative, and the pound felt the impact. In any case, it is not far from 1.2600, although we believe that it will be difficult for you to exceed this level during the next few hours.
The yen, on the other hand, looks stronger. On Monday he gave up positions to lose the level of 103.00, but again he points upwards for the rest of the day, with a current price of 102.83, and looking for the zones of 103.55 and 103.35 for the date session.
The gold, which started the year with an electrifying rally of more than 50 dollars in a few hours, currently stands at 1947.30 dollars, with a clear upward trend in the 4-hour chart, but also with an extreme over a purchase, which makes an imminent bearish correction of the precious metal. The break of 1930 dollars could speed up such correction, to seek coverage of a gap left in 1893 dollars at the opening on Monday.
The New York Stock Exchange also faces a strong challenge. The futures of the Dow Jones reached an all-time high just beginning the year, but the opening of Wall Street generated a bearish correction of more than 900 points, which calmed the mood and gave the index air to look for new upward movements in the coming days. However, the strength presented by the bearish correction of the eve allows us to think of a continuation of it during the next few hours. A similar picture presents the futures of the S&P 500 and Nasdaq 100.
The news agenda includes this Tuesday the first important fact. Manufacturing ISM could fall slightly