U.S.–Iran Tensions

Asian Indices Rebound, Gold Consolidates as U.S.–Iran Tensions Ease 

Asian indices ended higher as the traders digest the recent developments in USA-Iran tensions after the killing of General Soleimani in Baghdad by an American airstrike.

The Nikkei 225 in Tokyo ended 1.60% higher at 23,575, the Hang Seng index ended 0.34% higher at 28,322. The Singapore FTSE Straits Times ended 0.90% higher at 3,247 while the Shanghai Composite finished 0.69% higher at 3,104.  

European stocks also started the session higher. CAC40 adds 0.57 at 6,017 while the FTSE MIB in Milan is 0.73 per cent higher at 23,751. In London, the FTSE 100 is 0.09% higher at 7,582, while the DAX is outperforming as it trades 1.07% higher at 13,266.

Iran Tensions
XAUUSD Daily Chart

In commodities markets, the crude oil prices gave up 0.65% at $62.8666 as traders digest the recent developments in the Gulf region. Brent oil is 0.73% lower at $68.41 per barrel. Gold price consolidates today below the recent high, adding 0.02% at 1,565. The gold outlook is clearly bullish now as traders flock to safe-haven assets. The immediate resistance stands at 1,587.55 the recent high, while the support is at 1,447 the recent low.

In cryptocurrencies markets, Bitcoin trades 1.63% higher at $7,889 hitting the daily low at $7,479 and the daily high at $7,994. Bitcoin momentum is positive now as the crypto pair trades above the 50-day moving average while it approaches also the 100-day moving average. First support for BTCUSD stands now at $6,400 recent low, while the next support level holds at 6,000 round figure.

On the other hand, resistance stands at 9,925 high and then at 10,000 round figure. Ethereum ETHUSD trades 1.04% higher at 142.87 with capitalization now at 15.68 billion, on the upside resistance for Ethereum stands at 200 recent high while the support stands at 117.09 the previous week low, Litecoin (LTCUSD) is trading 1.32% higher at 45.76. The crypto market capitalization is $210.87 billion.

Iran Tensions
BTCUSD Daily Chart

In the Lookout: The United States Total Vehicle Sales dropped from the previous 17.1M to 16.7M in December. 

The Switzerland Consumer Price Index (YoY) came in at 0.2% beating expectations of 0% in December.   

Trading Perspective: In forex, the US dollar index trades 0.17 per cent higher at 96.78, the AUDUSD is 0.98% lower at 0.6871 against the US dollar. NZDUSD trades 0.45% lower at 0.6642. USDCHF is 0.32% higher at 0.9709.

GBPUSD trades 0.08% lower at 1.3156 as we are getting closer to the Brexit deadline on January 31st, 2020. Immediate support for the pound against the US dollar now stands at 1.2578 low which if broken, might push the pair further down towards 1.20. On the upside, the first resistance will be met at 1.3511 recent high.

EURUSD trades 0.18% lower at 1.1177 as the pair’s short term momentum is positive now. The first resistance for the EURUSD stands at 1.1224 recent high. On the other hand, support is at 1.1164 today’s low and then at 1.10.

USDJPY is trading 0.04% higher at 108.42, having hit the daily low at 108.25 and the daily high at 108.50. USDJPY will meet support at 105.43 the low from August 22nd. On the upside, initial resistance for the USDJPY now stands at 109.69 recent high.

USDCAD trades 0.13% higher at 1.2980, as the Canadian dollar boosted by stronger crude oil. The pair will meet first support at 1.2950 the recent low while the next support level stands at 1.29 round figure. On the flip side, resistance will be met at the 1.3066 the high from December 31st