Vaccine news improved sentiment

Vaccine news improved sentiment

There are three main market drivers: vaccine, Brexit, and US stimulus package. The market sentiment has improved due to the vaccine positive news. The first vaccines of Pfizer and BioNTech will be delivered to the USA today, but it will take months before it will be available for everyone. The widespread inoculations should stop the Covid-19 spread. The US predicts that 100 million Americans will be inoculated by April.

As for the US stimulus package, a bipartisan group of lawmakers is expected to unveil a $908 billion today. If it happens, riskier currencies and stocks will be boosted. However, there are some doubts that Congress will pass it.

Speaking about Brexit, the EU and the UK confirmed that they would continue negotiating. That gave a hope that the deal could be reached finally. According to Bloomberg, the Brexit agreement may be struck this week! It will push the pound upward.

Let’s look at the charts. EUR/USD is edging higher. If it manages to break the resistance zone of 1.2160-1.2170, it may jump to the round number of 1.2200. The support of 1.2110 is really strong as it lies on the 50-period moving average, which it has failed to cross so far, and the chain of recent lows. Therefore, the pair is likely to pull back rather than break out this level. Anyway, the next support will be at the low of December 8 at 1.2075.

EURUSDH4.png

Moving on to the pound, GBP/USD is trading inside the ascending channel. It briefly moved outside it on Friday, but then turned back. Indeed, the pair is really sensitive to any Brexit developments, that’s why it’s so volatile these days. If it rises above the key resistance of 1.3400, the way up to 1.3460 will be open. On the flip side, the move below the low of December 10 at 1.3300 will drive the price to Friday’s low of 1.3200.

GBPUSDDaily.png

Gold has started the week on the back foot amid the vaccine rollout. Indeed, the prospect of the soon recovery has undermined the yellow metal. It bounced off the 38.2% Fibonacci retracement level of $ 1 840. The way down to the support of $1 825 is clear. If it manages to break it down, it may drop to the 23.6% Fibo level of $1 810. In the opposite scenario, if it closes above the resistance zone of $1 840-1 845, it may jump to the 50% Fibo level of $1 865.

XAUUSDH4.png

Finally, let’s talk about oil. Brent oil is trading above $50 a barrel. The current risk-on sentiment should drive oil prices further up. The move above the high of December 10 at $51.00 will push it to the next resistance at the round number of $52.00. Support levels are at the 50-period moving average of $49.00 and recent lows of $48.50. To trade Brent oil with FBS, you need BRN-21G.

Brent_OilH4.png

TRADE NOW

Similar

Market Crash Incoming?
Market Crash Incoming?

This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.

What Currency Will Overperform?
What Currency Will Overperform?

S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.

Latest news

Crucial News For The Following Week
Crucial News For The Following Week

Consumer Price Index, Existing Home Sales, US Fed rate decision - all of these things we will discuss in our new review. Don't miss it out!

Focus on Banks' Meeting and NFP
Focus on Banks' Meeting and NFP

The RBA and the Bank of Canada will add volatility to the AUD and the CAD, while USD is expected to be boosted by the Non-farm payrolls.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera