Technical Outlook

– The EURJPY chart is shows ascending triangle formation, if the price breaks above the resistance the price may trade up.

– Double Top might play soon on XAUUSD which may bring the price down.

EUROZONE (EURO): CPI(YoY)

The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.

The previous reading came out to be 0.4%, which is same as expected 0.4%. The next report is due on Friday, January 5, 2024, 15:30GMT. Its forecast stands at 3.0%.

EURJPY Technical Analysis:

EURJPY was in an uptrend until 15th Nov. The price was in the bullish channel until it formed its wing high at $164.201. We can see a price pattern formation missed the double top, and the market broke the channel. On the way, the price also crossed the 50EMA.

The RSI line is at 39.61, which shows neutral overbought and oversold condition. Currently, we can see an ascending triangle forming. Bull entry could be seen with the rejection from the buyer’s side, pushing the price up.

The $153.587 is the bottom, and the price is moving up; traders must wait for the price to break above the resistance line at $158.000. However, if the price breaks below the swing low, it may continue its bearish move as the overall trend is bearish.

Pivot Points: EURJPY

US (USD): U.S. Nonfarm Payrolls

Nonfarm Payrolls measures the change in the number of people employed during the previous month, excluding the farming industry. Job creation is the foremost indicator of consumer spending, which accounts for the majority of economic activity.

A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

The previous actual data was 199K better than the forecast 180K. The upcoming report is due on Friday, January 5, 2024, 19:00GMT and its forecast figure stands at 163K.

XAUUSD Technical Analysis:

XAUUSD is in the uptrend, and the market is making higher highs and lows running inside the bullish channel. The price crossed the 50EMA, moving up. On the way, it took support from the 50EMA. On 4th Dec, the price gained significantly by 3.61%, but unfortunately, the sellers came and pushed the price down.

Currently, we could see a Double top that might form. If the price goes up and stays above the level of $2077.74, it might go up. However, we could accept that the price might fall if it does not push up in the lower time frame. The RSI line is at 60.05, which shows a slight overbought condition.

Pivot Points: XAUUSD

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