Daily Outlook -by- Michael Oyebamiji

Asian markets started on a positive note this week as all major indices closed with a massive gain across the board. This could be attributed to the fact that the People Bank of China fixed the yuan a bit stronger than expected which means the depreciation of the yuan might be delayed a bit further. On the back of this development, we saw a massive strength on USD in Asia while Euro lost some grounds against the USD and Gold coming off the $1264 highs to trade at $1234.

However, some overnight Data from Japan suggests the Japanese economy might be heading to recession as their fourth quarter GDP prints at -0.4%. In china, Export and Import data further indicates that the economy is still far from recovery. The Import data dropped to -11.3% while exports dropped to -18.8%. Trade balance showed a bit of rebound to bit expectation at 63.2B.

In Europe, Mario Draghi will be speaking later today, (European central Bank President) we are not sure what he will be speaking about, but he’s more likely to lay more emphasis on the current inflation forecasts and possibility of expanding Monetary stimulus

In the United States, the market is closed today for celebration of the Presidents’ Day. This means, it will be a quite Monday for trader.

Technically, Eurusd has broken the 1.120 support level, the next support is around 1.1135. Gold also has a support at $1184 while GBPUSD has a support at 1.444 and a resistance at 1.46. USDJPY resistance remains at $116.0 and support at $110.9

Below are some charts showing all support and resistance to watch

Fig 1: Eurusd 4Hour

Fig 2: Gold 4 Hour

Fig 3: USDJPY Daily Chart