Market Update - 03 January 2023

EUR/USD is smashed by a solid rebound in the US Dollar on Tuesday. Risk-on profile, weak Treasury yields fail to deter US Dollar bulls. EUR/USD is teasing a symmetrical triangle breakdown on the daily chart. (FXStreet)  

USD/JPY has dropped below the psychological support of 130.00 amid a recovery in the risk-on profile. The sustainability of the asset below the 200-EMA indicates that the long-term trend is bearish. An oscillation in the bearish range by the RSI (14) signals more weakness ahead. (FXStreet)  

GBP/USD jumps back toward 1.2100 amid risk recovery. US Dollar rebound fizzles out, USD/JPY sell-off weighs. GBP/USD bounces off 200DM, RSI enters into the bullish zone. (FXStreet)  

USD/CAD has displayed an A-shape sell-off as investors have shrugged off China’s Covid-inspired uncertainty. FOMC minutes will provide cues about the monetary policy outlook for CY2023. The Loonie bulls are likely to dance to the tunes of Canada’s employment data. (FXStreet)  

GBP/JPY drops below a three-month-old upslope trendline, down since last week’s high close of around 3%. The RSI at oversold conditions suggests the GBP/JPY could be bottoming, but the RoC suggests that sellers remain in charge. GBP/JPY Price Analysis: Break below 157.00 would exacerbate a fall to 154.00. (FXStreet)  

EUR/JPY tumbles beneath the 140.00 figure as the cross dives below the 200-DMA and the 20-day crosses below the 100-DMA. A megaphone top formation suggests that downward pressure lies ahead on the EUR/JPY. EUR/JPY Price Analysis: Once it clears 138.80, a fall to 135.51 is on the cards. (FXStreet)  

AUD/USD has climbed above 0.6830 as the risk-on profile has rebounded firmly. Better-than-projected release of the Caixin Manufacturing PMI data has supported the Australian Dollar. The RSI (14) has shifted into the bullish range of 60.00-80.00, which indicates that the bullish momentum has been activated. (FXStreet)  

NZD/USD has slipped to near 0.6300 as the US Dollar Index has climbed above 103.60. A release of the upbeat Caixin Manufacturing PMI at 49.0 has failed to support the New Zealand Dollar. Investors have turned cautious after the New Year celebrations and a long weekend. (FXStreet)  

The USD/CHF downfall stalled around 0.9200 as a triple bottom emerged. A falling wedge and oscillator flashing selling pressure waning could pave the way for further upside in the USD/CHF. USD/CHF is poised for a break above 0.9300 as it eyes a test of the 20-day EMA. (FXStreet)  

Gold price turns south after facing rejection at the $1,850 key level. The US Dollar rebound gathers steam in the European session.  Sell-off in the US Treasury yields cap the downside in the Gold price. (FXStreet)  

Source: FXStreet, DailyFX

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