USD/JPY: Possible resistance on the 109.00 level

The USD/JPY has been rallying steadily and it reaches the 109.00 level where it stalls at the moment as shown on the daily chart. The 109.00 level may act as resistance and the price may try to bounce to the downside from there, in such case, a return to the 106.16 level is possible. The bullish trend is still in place and if the price continues going higher, then the price may reach the 111.00 level or even the 112.00 level. For now we are waiting to see if the risk appetite continues and the Dollar continues rallying versus the Yen.

Consolidation on gold may be a resting point

The drop on gold has stopped momentarily around the 1219.11 zone as shown on the daily chart of the precious metal and for the last few days it consolidates there. The consolidation may act as a resting zone, from where the price may continue falling. A visit to the 1200.00 level may happen in the coming days. The 1200.00 level may act again as support. To the upside there are a few important levels that may act as resistance, but in reality, the price of gold may stay consolidated in the longer term between the 1200.00 level and the 1300.00 level. The most important supports are the 1241.45 level, the 200 day EMA and obviously, the 1300.00 level.

Will gold continue falling?

Since gold is a safe-haven instrument, during the last presidential elections in the US, the commodity had very high volatility. But the risk aversion left the markets and gold dropped, pressured by the rally in the Dollar. Once the price of gold broke below its 200 day EMA, blue line, around the 1270.66, the bearish momentum accelerates and gold visits the low at the 1241.45 level. The 1241.45 level had acted as a support in the past, but the drop in gold was so strong that it also broke that level to reach the 1219.11 level. The bearish trend may continue and gold may visit the 1200.00 level. To the upside the most important resistances could be the 200 EMA, the 1300.00 level and the high at the 1337.04 level.

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EUR/USD: Trump’s volatility

The EUR/USD has shown high volatility during the US presidential elections. On the daily chart of the pair we can see a big spike that reaches the 1.1300 level. That high was created when it was getting clear that Donald Trump was going to win the elections. But the market seems to have gotten ahead of itself and the price dropped back down to the 1.0900 level. By the way, the 1.0900 level has been acting as a support, but a breakdown of that zone could take the pair to the 1.0800. The range of the EUR/USD was 400 pips on yesterday’s candle, causing the 1.1300 level to be the most important resistance so far. If the volatility dries up, then the price may fluctuate between the 1.0900 level and the 1.1100 level for a while.

Oil continues falling

On the daily chart of WTI oil we can see a huge drop from the 51.60 area to the 44.00 zone. At the 44.00 zone, oil tried to jump to the upside, but it couldn’t keep the bullish momentum, coming close to the 200 day exponential moving average. Another visit to the 44.00 level may cause the price of oil to stall its fall there, but the bearish trend is still in place and it may break it to the downside. A breakdown of the 44.00 level may take oil to the 42.00 level, but we can see on the chart that the most important support so far has been the 40.00 level.

USD/CAD: Bounces from the 1.3300 level

The USD/CAD rallied last week towards the 1.3450 zone, but it pulls back from that area to the 1.3300 zone as shown on the daily chart. From this level the pair may try to bounce to the upside, since the 1.3300 could act as a support. A bullish bounce of the USD/CAD from the 1.3300 level, may take the pair to the 1.3400 zone or the 1.3500. But if the price breaks below the 1.3300 level, then it may drop to the 1.3200 where it may find a temporary support, because below that level we can see the 200 day exponential moving average, blue line, around the 1.3138 level and which could act as a better support. Below the 200 day EMA, the next important support area is the 1.3000 zone.