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

20/12/2022 Daily Reports

Support Level: 1.0570 - 1.0500 - 1.0400 Resistance Level: 1.0660 - 1.0740- 1.0850

EUR/USD

  • The EUR/USD is trading flat for the day, hovering near 1.0600. During the American session, the pair fell to 1.0574, reaching the lowest level since December 13, but still bullish in the daily chart.
  • While German yields moved off highs during the Aercianesssion, Treasury yields printed fresh highs. As of writing, the US 10-year bond yield stands at 3.58% the highest in six days.
  • In Wall Street, the Dow Jones is falling by 0.13%, adding to last week’s losses. The Nasdaq tumbles by more than 1%. Concerns about the global economic outlook as central banks continue to raise interest rates, weighs on market sentiment.
  • The EUR/USD pair is trading near the 1.0600, unchanged 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 1.0660, break above this level will extend the advance to 1.0740.
  • Technical readings in the daily chart support the bullish stances. The RSI indicators hovering above the midline and stabilized around 64. The Momentum indicator stabilized above the midline, indicating upward potentials. On downside, the immediate support is 1.0570 and below this level will open the gate to 1.0500.

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    Support Level: 1.2100 - 1.2000 - 1.1900 Resistance Level: 1.2250 - 1.2340 - 1.2450

    GBP/USD

    • The GBP/USD pair struggles to capitalize on its advance from the 1.2120 area, or over a one-week low and remains on the defensive through the early North American session. Itr surged to near 1.2200, but failed to hold the gains and ended Monday at around 1.2150, still bullish in the daily chart.
    • Overall, the US Dollar has been softer over the last two full trading days due to an improved appetite for risk despite the prospects of recessions and higher interest rates to be set by hawkish central banks.  World stocks have steadied near six-week lows on Monday after the Federal Reserve maintained a hawkish outlook on interest rates at the December FOMC meeting, pushing the outlook that rates could remain firmer for longer.
    • Although the media embargo has been lifted, there are no Fed speakers scheduled this week. Overall, it has been a tug-of-war between signs of economic softness which could translate to a dovish pivot from the Federal Reserve vs. warnings that restrictive interest rates will rise higher and last longer than many might have hoped. Nevertheless, a lack of market catalysts has kept investors largely on the sidelines at the beginning of a likely low-volume, pre-holiday week, leaving GBP/USD in a sideways range so far.
    • The GBP/USD offers bullish stance in daily chart. Cable still stabilized above 50 SMA, indicating bullish strength in short term. Meanwhile, the 20 SMA continued developing above longer ones despite it started turning flat, suggests bulls not exhausted yet. On upside, The immediate resistance is 1.2250 with a break above it exposing to 1.2340.
    • Technical readings in the daily chart support the bullish stances. RSI indicator stabilized around 54, while the Momentum indicator stabilized above the midline, suggesting upward potentials. On downside, the immediate support is 1.2100, unable to defend this level will resume the decline to 1.2000.

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    Support Level: 1774 - 1765 - 1744 Resistance Level: 1800 - 1814 - 1825

    XAU/USD

    • Gold price struggles to capitalize on Friday’s goodish rebound from over a one-week low and oscillates in a narrow band on the first day of a new week. The XAU/USD, meanwhile, manages to hold above the very important 200 SMA, albeit remains below the $1,800 mark through the US session, still bullish in the daily chart.
    • The US Dollar comes under some renewed selling pressure and turns out to be a key factor lending some support to the Dollar-denominated Gold price. The downside for the USD, however, is likely to remain limited amid a modest uptick in the US Treasury bond yields, bolstered by a more hawkish commentary by the Fed last week.
    • Apart from this, a stable performance around the equity markets is seen as another factor holding back traders from placing bullish bets around the safe-haven XAU/USD. That said, growing worries about a deeper global economic downturn should keep a lid on any optimism in the markets and continue to offer some support to Gold price, at least for now.
    • Gold price stabilized around 1787, 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 1800, break above this level will open the gate to extend the advance to 1814 area.
    • From a technical perspective, the RSI indicator hold above the midline and stabilized around 56, suggesting bullish strength. The Momentum indicator stabilized above the midline, suggests upward potentials. On downside, the immediate support is 1774, below this area may resume the decline to 1744.

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    Support Level: 135.70 - 134.50 - 133.60 Resistance Level: 137.40 - 138.20 - 139.50

    USD/JPY

    • The USD/JPY erased daily losses on Monday during the American session and climbed to above 137.00, hitting a daily high on the back of a weaker Japanese Yen hit by higher yields, still bearish in the daily chart.
    • Government bond yields are rising sharply.  The US 10-year is at 3.58%, at the highest in almost a week. The German 10-year reference stands at 2.21%, the highest since early November.
    • After a busy week, in terms of economic data and events, that included the FOMC meeting, the US calendar is light for the days ahead. Market participant will likely continue to digest what the Federal Reserve will do next and the latest round of economic data, with concerns about the global economic outlook. On Tuesday, the Bank of Japan will announce its monetary policy decision. No change is expected.
    • The USD/JPY pair stabilized around 137.00,  up for the day and neutral to 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 137.40 may encourage bulls to challenge 138.20, break above that level will open the gate to 139.50.
    • Technical indicators suggest the bearish strength. RSI stabilized around 45, while the Momentum indicator continued developing below the midline, suggests downward potentials. On downside, the immediate support is 135.70, break below this level will open the gate to 134.50 area.

    Support Level: 32790 - 32600 - 32400 Resistance Level: 33280 - 33500 - 34930

    DJI

    • DJI still under the sell pressure, tumbled from intraday high 33280 to intraday low 32790 level. It recovered modestly and ended Monday at 32960, down for the day and bearish in the daily chart. The price stabilized below 20 and 50 SMA, suggests bearish strength in short term. Meanwhile, 20 SMA continued heading south and developing below 50 SMA, suggests bears not exhausted yet. On upside, overcome 33280 may encourage bulls to challenge 33500, break above this level will open the gate to 33930.
    • Technical indicators indicates the bearish strength. RSI stabilized around 39, while the Momentum indicator stabilized in negative territory, suggests downward potentials. On downside, the immediate support is 32790, break below this level will open the gate for more decline to 32600 area.

    Support Level: 79.70 -78.30 - 77.00 Resistance Level: 81.00 - 81.80 - 83.20

    BRENT

    • Brent advanced modestly, climbed from intraday low 78.66 to intraday high 80.87 and ended Monday at around 80.25, up for the day and bearish in the hourly chart. The price stabilized above 20 and 50 SMAs, suggests bullish strength in short term. Meanwhile, the 20 SMA started turning north and heading towards 50 SMA, indicating bulls not exhausted yet. On upside, overcome 81.00 may encourage bulls to challenge 81.80, break above this level will open the gate to 83.20.
    • Technical indicators suggest the bullish movement, hovering above the midline. RSI stabilized at around 54, while the Momentum indicator stabilized in positive territory, suggests upward potentials. On downside, the immediate support is 79.70, break below this level will open the gate for more decline to 78.30 area.

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