The daily reports for important events that affects the forex, stocks and commodities markets.

06/12/2022 Daily Reports

Support Level: : 1.0430 – 1.0390 – 1.0290 Resistance Level: 1.0600 – 1.0700- 1.0800

EUR/USD

  • The Euro is down against the US Dollar following the release of an upbeat US ISM Services PMI that underpinned the USD, while last week’s solid November US employment report shows the labor market remains tight. At the time of writing, the EUR/USD is trading at 1.0490, down by 0.40%.
  • Sentiment remains deteriorated, even though China is beginning to ease Covid-19 measures. The US ISM Non-Manufacturing Index for November rose by 56.5, above estimates of 53.3, crushing October’s 54.4. According to Bloomberg, “The service sector expanded at a faster pace in November, with the holiday season bolstering business activity.” It should be noted that the price index subcomponent confirmed that inflationary pressure is skewed to the upside.
  • In the meantime, across the pond, S&P Global PMIs Services and Composite indices across the Eurozone remained unchanged, while the Euro area Retail Sales came worse than expected, at -1.8% MoM vs. -1.7% foreseen and -2.7% YoY, below -2.6% estimated. Additionally, several European Central Bank (ECB) officials, Villeroy and Makhlouf, backed a 50 bps rate hike in the December meeting.
  • The EUR/USD pair is trading near the 1.0490, down for the day with bullish stance in daily chart. The pair stabilized above 20 and 50 SMA, indicates bullish strength. Meanwhile, the 20 SMA continued accelerating north and developing far above longer ones, suggests bulls not exhausted yet. On upside, the immediate resistance is 1.0600, break above this level will extend the advance to 1.0700.
  • Technical readings in the daily chart support the bullish stances. The RSI indicators hovering above the midline and stabilized around 65. The Momentum indicator stabilized above the midline, indicating upward potentials. On downside, the immediate support is 1.0430 and below this level will open the gate to 1.0290.

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Support Level: 1.2130 – 1.2030 – 1.1900 Resistance Level: 1.2230 – 1.2350 – 1.2500

GBP/USD

  • The British Pound is under pressure in the North American session as risk appetite drops on Wall Street. At the time of writing, GBP/USD is down 0.78% after falling from a high of 1.2344 to a low of 1.2162 so far, still bullish in the daily chart.
  • The US Dollar is climbing in a risk-off environment as an initial boost of investor enthusiasm over signs of possible loosening in COVID restrictions in China faded and on some speculation that the Federal Reserve may not be able to pivot as soon as December.
  • The Institute for Supply Management (ISM) said its Non-Manufacturing PMI rose to 56.5 last month from 54.4 in October, indicating that the services sector, which accounts for more than two-thirds of US economic activity, remained resilient in the face of rising interest rates. The data beat forecast the Non-manufacturing PMI would fall to 53.1. This data combined with Friday’s surprisingly strong Nonfarm Payrolls and wage growth data in November as well as news that consumer spending had
    accelerated in October gives has raised optimism that a recession could be avoided in 2023.
  • The GBP/USD offers bullish stance in daily chart. Cable still stabilized above all main SMAs, indicating bullish strength in short term. Meanwhile, the 20 SMA continued accelerating north and developing above longer ones, suggests bulls not exhausted yet. On upside, The immediate resistance is 1.2230 with a break above it exposing to 1.2350.
  • Technical readings in the daily chart support the bullish stances. RSI indicator stabilized around 62, while the Momentum indicator stabilized above the midline, suggesting upward potentials. On downside, the immediate support is 1.2130, unable to defend this level will resume the decline to 1.2030.

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Support Level: 1760 – 1730 – 1700 Resistance Level: 1810 – 1830 – 1857

XAU/USD

  • Gold price retraces after hitting a multi-month high at $1810, spurred by high US Treasury yields and a risk-off impulse. At the time of writing, the XAU/USD is trading at $1767, down by 1.70%, neutral to bullish in the daily chart.
  • Factors like the latest employment report in the United States cementing the tightness of the labor market caused a jump in US bond yields. China’s easing Covid-19 restrictions kept the yellow metal from appreciating.
  • Aside from this, the US 10-year Treasury bond yield is rising nine bps, from 3.502% to 3.597%, while US Real Yields, which reflect the interest of the nominal yield minus inflation expectations, remain at 1.16% as of Friday, a headwind for Gold. XAU/USD remains heavy, falling more than 1%, as Wall Street opened.
  • Gold price stabilized around 1767, down for the day and bullish in the daily chart. The gold price still stabilized above 20 and 50 SMA, suggesting bullish strength in short term. Meanwhile, the 20 SMA continued accelerating north and developing above 50 SMA, indicating bulls not exhausted yet. On upside, the immediate resistance is 1810, break above this level will open the gate to extend the advance to 1830 area.
  • From a technical perspective, the RSI indicator hold above the midline and stabilized around 54, suggesting bullish strength. The Momentum indicator stabilized above the midline, suggests upward potentials. On downside, the immediate support is 1760, below this area may resume the decline to 1730.

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Support Level: 133.60 – 133.00 – 132.00 Resistance Level: 136.00 – 137.00 – 138.00

USD/JPY

  • The USD/JPY jumped from 134.10 to 135.95, after the release of the US official employment report that showed better-than-expected numbers. USD/JPY broke above 135.50 and jumped above 136.00 extending the recovery from multi-month lows as the US Dollar is rising across the board supported by better-than-expected economic data and higher Treasury bond yields. The pair still bearish in the daily chart. pair then pulled back toward 134.35 after the initial reaction, still bearish in the daily chart.
  • US economic data surpassed expectations on Monday, helping the US Dollar. The S&P Global Composite PMI was revised from the 46.3 preliminary reading to 46.4 in November. Factory Orders in October rose 1% surpassing expectations of a 0.7% increase. The ISM Service PMI in November rose from 54.4 to 56.5. The Price Paid Index fell from 70.7 to 70.
  • The US Dollar Index (DXY) is up 0.40% after hitting earlier on Monday at 104.11, the lowest level since June. The more positive tone around the Greenback helped the USD/JPY move further to the upside.
  •  USD/JPY pair stabilized around 136.70, up for the day and bearish in the daily chart. The price still maintains the downward slope and develops below all main SMAs, suggests bearish strength in short term. Meanwhile, 20 SMA continued accelerating south and developing below longer ones, indicating bears not exhausted. On upside, overcome 137.50 may encourage bulls to challenge 140.00, break above that level will open the gate to 142.20.
  • Technical indicators suggest the bearish strength. RSI stabilized around 37, while the Momentum indicator continued developing below the midline, suggests downward potentials. On downside, the immediate support is 135.00, break below this level will open the gate to 133.60 area.

Support Level: 33870 – 33600 – 33400 Resistance Level: 34150 – 34310 – 34500

DJI

  • DJI continued under the sell pressure, tumbled from intraday high 34450 area to low 33882. It recovered modestly at the US session and ended Monday at around 33990, down for the day and bearish in the hourly chart. The price stabilized below 20 and 50 SMA, suggests bearish strength. Meanwhile, 20 SMA continued accelerating south and developing below 50 SMA, suggests bears not exhausted yet. On upside, overcome 34150 may encourage bulls to challenge 34310, break above this level will open the gate to 34500.
  • Technical indicators indicates the bearish strength. RSI stabilized around 32, while the Momentum indicator stabilized below the midline, suggests downward potentials. On downside, the immediate support is 33870, break below this level will open the gate for more decline to 33600 area.

Support Level: 82.50 -80.70 – 79.00 Resistance Level: 84.00 – 85.00 – 86.00

BRENT

  • Brent still under the sell pressure, dropped from intraday high 88.43 to intraday low 82.54 area. It hold near the bottom and ended Monday at around 83.00, down for the day and bearish in the hourly chart. The price stabilized below 20 and 50 SMAs, suggests bearish strength in short term. Meanwhile, the 20 SMA continued accelerating south and developing below 50 SMA, indicating bearish bias. On upside, overcome 84.00 may encourage bulls to challenge 85.00, break above this level will open the gate to 86.00.
  • Technical indicators suggest the bearish movement, hovering below the midline. RSI stabilized at around 27, while the Momentum indicator stabilized below the midline, suggests downward potentials. On downside, the immediate support is 82.50, break below this level will open the gate for more decline to 80.70 area.

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