Forex Signals Brief for Jan 12: Volatililty Rising
Rowan Crosby • 2 min read
US Markets were marginally lower, dragged down by the key tech names as we had already predicted.
Twitter, Facebook and the key FAANG names were soft on the back the widespread censorship that has been taking place across the country.
It’s also interesting to me that now we are also seeing the COVID fear campaign noticeably getting wound back. Led by one of the biggest instigators of the lockdowns, in NY Gov. Andrew Cuomo, who is now calling to reopen the economy.
Cuomo suggested that the cost of closing the economy is just to great. Sounds like something we heard back in April from a certain US President. Of course, Biden is talking about 100 days of lockdown, so watch this space as well.
Elsewhere, we did see further upside in the USD as well as wild volatility in BTC and the other major cryptocurrencies, with some slipping 40%.
The Data Agenda
Data is still of secondary importance at the moment given everything that is going on.
We will get the latest JOLT job openings data, which of course, comes on the back of the very weak non-farm payroll number we saw on Friday.
Hopefully, NYC reopening can cause a drastic turnaround in the economy.
Forex Signal Update
The FX Leaders Team didn’t close any green signals yesterday as markets were volatile.
AUD/USD – Pending Signal
The AUD/USD is knocking on the door of 0.7700 once again. As we can see, price is back in this channel.
EUR/CHF – Active Signal
The EUR/CHF has been holding up nicely with the 1.0800 level below. We remain long here.
BTC got dumped hard yesterday and the selling started very early on. Price has been around the $40,000 level all weekend, however, the sellers hit hard and took price all the way down to $30,000 before buyers stepped up.
As I mentioned earlier, I had heard rumours that mining operations have been hit in some countries. However, this is simply speculation at this stage.
I fully expect to see increased volatility in the coming days so be ready, especially if that $30,000 level drops.