2020: Strong Gold, Weaker Dollar Amid COVID-19 Vaccinations, Brexit Agreement

Azeez Mustapha
31 December 2020 | Updated: 31 December 2020

Gold rallied slightly amid another fall in the dollar, but global progress in vaccinations has blocked demand for shelters. Despite recent breakthroughs in COVID vaccines, adoption has been disappointing, and the current wave seems to require more restrictive measures over the next few weeks.

More than a year has passed since the first cases of COVID-19 were diagnosed in Wuhan, China. As a result of the virus, we witnessed an unfathomable global outage in the second quarter, followed by a record return to growth in the third quarter with the onset of the summer months. The fourth quarter ended with the second and third waves. In November, the results of Phase 3 vaccine trials began to arrive, and by the end of the year, key workers and those most in need were receiving their first doses.

Without too many surprises, the UK House of Lords approved a Brexit trade deal early Thursday in Asia.

“Prime Minister Boris Johnson’s post-Brexit trade deal was approved by the UK Parliament just 24 hours before the country’s final secession from the European Union,” Bloomberg reported.

The agreement was previously renegotiated by the House of Commons, receiving 521 votes in favor of 73 to 73. It should be noted that the Scottish National Party (SNP) opposes the bills, stating, according to Bloomberg, it will harm the Scottish fishing industry and told Johnson that it would support the argument in favor of independence.
Weaker US Dollar in 2021
As the vaccine is prepared and more people return to work, the need for fiscal and monetary incentives will decrease; however, many central banks have indicated that they will maintain the adaptive monetary policy until 2021. The US dollar may remain under pressure during the first half of the year but may rise in the third and fourth quarters as the FOMC may hint at an increase in interest rates if inflation rises until 2022.

Simply put, better economic data equals less incentive. Fewer incentives mean less US dollars in the system. Less US dollars (plus higher demand for products and services) means a higher price.

On the monthly timeframe, the DXY has broken below the uptrend line since September 2011. If this level is broken, notice the 50% recovery from the February 2008 lows to the January 2017 highs as the next support level, around 87.10. Below was the 50% retracement level around 87.26 and the horizontal support around 84.60.

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Australia 200 (AU200AUD) Is in a Downward Correction, a Breakdown to level 6529.80 is Likely

Azeez Mustapha
31 December 2020 | Updated: 31 December 2020

Key Resistance Zones: 7000, 7100, 7200
Key Support Zones: 6100, 6000, 5900

Australia 200 (AU200AUD) Long-term Trends: Bullish
Australia 200 is in a sideways move below level 6300. The index has been fluctuating between levels 6600 and 6800. Australia 200 is likely to fall as it reaches the overbought region of the market.

AU200AUD – Daily Chart

Daily Chart Indicators Reading:
The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend. The index has fallen to level 54 of the Relative Strength Index period 14. This indicates that the market is in the uptrend zone and above the centerline 50.

Australia 200 (AU200AUD) Medium-term Trend: Bullish
On the 4- hour chart, Australia 200 is in an upward move. The upward move is facing resistance at level 6700. The index is retracing from the recent high. A retraced candle body tested the 50% Fibonacci retracement level. The index will fall to level 2.0 Fibonacci extension. That is the low of level 6529.80.

AU200AUD -4 Hour Chart

4-hour Chart Indicators Reading
AU200AUD is above the 40% range of the daily stochastic. The index is approaching the oversold region. The 21-day SMA and the 50-day SMA are sloping upward indicating the current uptrend.

General Outlook for Australia 200 (AU200AUD)
Australia 200 is making a downward move. The index is falling after rejection at level 6680. According to the Fibonacci tool, the market will fall to level 6529.80.


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EUR/GBP Is in a Downtrend, Faces Rejection at Level 0.9100

Azeez Mustapha
31 December 2020 | Updated: 31 December 2020

Key Resistance Levels: 0.9200, 0.9400, 0.9600
Key Support Levels: 0.8800, 0.8600, 0.8400

EUR/GBP Price Long-term Trend: Bearish
The pound is presently falling in a downward move. The pair was earlier making a correction when it was rejected at level 0.91000. The downtrend will reach the previous low at level 0.8880.

EUR/GBP – Daily Chart

Daily Chart Indicators Reading:
The 50-day and 21-day SMAs are sloping horizontally. The pair is at level 43 of the Relative Strength Index period 14. The pound is below the centerline 50 and it is in the downtrend zone.

EUR/GBP – 4 Hour Chart

EUR/GBP Medium-term Trend: Bullish
On the 4-hour chart, the EUR/GBP pair is on a downward move. On December 31 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. This retracement indicates that the pound will fall to a level 2.0 Fibonacci extension level. That is the low of 0.8906.

4-hour Chart Indicators Reading
The 50-day SMA and 21-day SMA are sloping downward. The pair is above the 50% range of the daily stochastic. It indicates that the Pound is in bearish momentum. It is also approaching the oversold region

General Outlook for EUR/GBP
The Pound has resumed a downward move. The overall trend has been a sideways move. According to the Fibonacci tool, the market will fall to level 0.8906.

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AUD/JPY Has Reached the Overbought Region, Sellers Are Likely to Emerge

Azeez Mustapha
31 December 2020 | Updated: 31 December 2020

Key Resistance Levels: 78.00, 80.00, 82.00
Key Support Levels: 58.00, 60.00, 62.00

AUD/JPY Price Long-term Trend: Bullish
The pair is now in an upward move. The price has broken the resistance at level 78.00. On December 17 uptrend, a retraced candle body tested the 61.8% Fibonacci retracement level. This retracement indicates that the pair is likely to rise to level 1.618 Fibonacci extensions. That is a high of 80.26.

AUD/JPY – Daily Chart

Daily Chart Indicators Reading:
The 21-day SMA and the 50-day SMA are sloping upward indicating the upward move. The pair has risen to level 72 of the Relative Strength Index period 14. This indicates that the Yen is in the uptrend zone and above the centerline 50. The pair has reached the overbought region of the market.

AUD/JPY Medium-term Trend: Bullish
On the 4-hour chart, the pair is in an upward move. The pair has risen to level 89.69. The market will soon reach the overbought region of the market. The current uptrend may be terminated.

AUD/JPY – 4 Hour Chart

4-hour Chart Indicators Reading
The AUD/JPY pair is currently above the 80% range of the daily stochastic. It indicates that the pair is in a bullish momentum. The market has reached the overbought region of the market. There is a likelihood of sellers emerging in the overbought region.

General Outlook for AUD/JPY
The AUD/JPY pair is in a bullish momentum. The indicators are pointing to the overbought condition of the pair. Sellers may emerge to push prices down.



Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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The SEC vs XRP Crisis: All You Need to Know

Azeez Mustapha
31 December 2020 | Updated: 1 January 2021

The past few days have been a very heart-wrenching experience for Ripple (XRP), which has seen the third-largest cryptocurrency shave off close to 60% from its value. Things came crashing for the cryptocurrency following a recent lawsuit by the SEC.

In this article, we will be taking a deep dive into the SEC’s lawsuit against XRP, the nature of XRP, and price reactions and predictions relating to the lawsuit-induced crash.


The SEC’s Cryptocurrency-Related Lawsuits in 2020
The US Securities and Exchange Commission (US SEC) has been tough on cryptocurrencies this year. Earlier this year (sometime in March), the Commission won a worldwide injunction against Telegram’s stablecoin (GRAM) issuance, decimating several years of research and innovative progress, even in the absence of fraud allegations.

 

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Again in September, Judge Alvin K. Hellerstein ruled in favor of the SEC’s motion for summary judgment in SEC vs. Kik Interactive. The motion alleged that Kik sold unduly registered securities when it issued its Kin crypto tokens. Both of these cases (against Telegram and Kik) were filed in the Southern District of New York.

Fast-forward to December 22, the SEC decided to go for another high-profile case. The Commission filed its lawsuit in the above-mentioned district against Ripple Labs and its previous and present Chief Executive Officers (CEO), Christian Larsen and Bradly Garlinghouse, respectively, for raising about $1.38 billion through a sale of XRP since 2013.

The immediate effect of this lawsuit was brutal on XRP, which dropped by about 25% just 24 hours after the suit was filed.

The Complaint
The Securities and Exchange Commission announced on the 22nd of December that it had filed an action against Ripple Labs and two of its excos, who the Commission deems as significant security holders, for allegedly raising over $1.3 billion through an unregistered, ongoing digital assets securities offering.

According to the SEC’s complaint, Ripple; Christian Larsen, the company’s co-founder, executive chairman of its board, and former CEO; and Bradley Garlinghouse, the company’s current CEO, crowdfunded capital to fund the firm’s operations. The suit alleges that Ripple’s crowdfunding activity began in 2013, from the sale of XRP in unregistered security offerings to investors in the US and across the globe. The complaint also alleged that Ripple distributed billions of XRP for non-cash consideration, like labor and market-making operations.

The suit also alleges that in addition to developing, promoting, and selling XRP which is used to fund its operations, Larsen and Garlinghouse also carried out personal ‘under-the-counter’ sales of XRP, amounting to the tune of approximately $600 million. The complaint alleges that the defendants failed to meet the registration requirements per the registration provisions of the federal securities laws, which puts them in a culpable situation.

Stephanie Avakian, the Director of the SEC’s Enforcement Division, noted that “issuers seeking the benefits of a public offering, including access to retail investors, broad distribution and a secondary trading market, must comply with the federal securities laws that require registration of offerings unless an exemption from registration applies.” She added that “we allege that Ripple, Larsen, and Garlinghouse failed to register their ongoing offer and sale of billions of XRP to retail investors, which deprived potential purchasers of adequate disclosures about XRP and Ripple’s business and other important long-standing protections that are fundamental to our robust public market system.”

 

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The SEC complaint was filed against the defendants for allegedly violating the registration provisions per the Securities Act of 1933. The investigation was carried out by Daphna A. Waxman, Jon A. Daniels, and John O. Enright of the SEC’s Cyber Unit. The case is supervised by Kristina Littman, Chief of the SEC Enforcement Division’s Cyber Unit. Finally, the litigation was facilitated by Jorge G. Tenreiro, Dugan Bliss, Ms. Waxman, and Mr. Daniels, and supervised by Preethi Krishnamurthy.
A Brief History of Ripple and XRP
The idea behind XRP was developed back in early 2012, after which the company changed its name to Ripple. The XRP Ledger—or otherwise known as the software code—functions as a peer-to-peer database spread across a network of computers (nodes), tasked with recording data about transactions among other requirements. To gain consensus, each server on the network assesses every transaction from a subset of trusted nodes, to prevent fraudulent transactions. The trusted nodes are known as the server’s unique node lost or UNL.

On the XRP network, each server has the liberty to define its own trusted nodes. However, the XRP Ledger requires a healthy level of trusted nodes overlaps chosen by each server. To achieve this, Ripple makes a proposed UNL public.

After the XRP Ledger was finally completed and as it was getting deployed to the designated servers to run it in December 2012, exactly eight years ago, a fixed supply of 100 billion XRP was set and manufactured at a very minimal cost. After the creation, 80 billion XRP tokens were transferred to Ripple, the host company, while the remaining 20 billion tokens were transferred to the founders, including Larsen. This meant that Ripple and its founders controlled all XRP in existence at the time.

These decisions were said to have been executed as a compromise between a fully decentralized peer-to-peer network inspired by Bitcoin (BTC) and a fully centralized network with a single trusted intermediary, just like a traditional financial institution. That said, Bitcoin was never fashioned to be operated in a centralized manner, while XRP was originally designed to be just that considering the initial token distribution. This hybrid approach to blockchain-based digital assets, which was controlled by a central body, sparked unrest in the cryptocurrency community, with many crypto enthusiasts saying that XRP was not a “true” cryptocurrency.

According to the SEC, between 2013 and 2014, Ripple and its founders sought to carve out a market for XRP by demanding that Ripple distribute about 12.5 billion XRP via bounty programs, which saw programmers earn tokens for reporting bugs on XRP Ledger’s code. To further boost the circulation and create a trading market for XRP, Ripple distributed small sums of tokens—typically between 100 and 1,000 XRP per transaction—to anonymous developers and others.

Then, Ripple executed more systematic actions to boost speculative demand and the trading volume for XRP. In 2015, Ripple began a campaign to make XRP a “universal digital asset” for banks and other traditional financial institutions to carry out monetary transfers. According to the SEC, to do this, Ripple needed to have created an active, liquid XRP secondary trading market. This means Ripple expanded its efforts to create a use for XRP while boosting sales of the cryptocurrency in the market.

At this point Ripple Labs, and its subsidiary XRP II LLC, came under investigations by the US Financial Crimes Enforcement Network (FinCEN), acting according to its mandate in the Bank Secrecy Act (BSA). The Northern District in California, in conjunction with the US Attorney’s Office, charged both companies for failing to meet the various stipulated BSA requirements, including not registering with the FinCEN and defaulting on maintaining adequate Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols. The FinCEN asserted that Ripples’ failure to comply with the requirements opened the door for terrorists and money launderers to use XRP maliciously.

However, this case didn’t make it to trial, as Ripple Labs agreed to settle the charges by paying a $700,000 fine and update the company’s operations to meet the required BSA standards. The out-of-court agreement was announced on May 5, 2015. Throughout its investigation, the FinCEN maintained that XRP was a digital currency, which Ripple acceded to and has since updated its protocols to meet BSA requirements.

The SEC complaint noted that from 2014 through the third quarter of 2020, Ripple sold at least 8.8 billion XRP in the market and institutional sales, netting approximately $1.38 billion to finance its activities. Additionally, the complaint asserted that from 2015 through March 2020, while he was the CEO and later chairman of the board at Ripple, Larsen and his wife, Lyna Lam, sold over 1.7 billion XRP to public investors in the cryptocurrency market.

The couple was reported to have made at least $450 million from the sale. Meanwhile, from April 2017 through December 2019, while he was the CEO of Ripple, Garlinghouse sold more than 321 million XRP that he had received from Ripple to public investors in the cryptocurrency market, grossing about $150 million from the sale.


Exchanges Begin Delisting XRP
Following the messy lawsuit against the cryptocurrency giant, many exchanges have begun unlisting or suspending XRP trading on their platforms. Coinbase was the latest exchange to distance themselves from XRP as the suit drags on.

Coinbase listed XRP on its retail-facing platforms in February 2019. However, Coinbase has announced that the cryptocurrency has now been moved to the “limit only” section for now and will be fully suspended on January 19, 2021. Paul Grewal, the Chief Legal Officer at Coinbase, wrote in a blog post that “we will continue to monitor legal developments related to XRP and update our customers as more information becomes available.”

Meanwhile, the exchange has assured that users’ XRP wallets will still be able to receive funds and facilitate withdrawal even after the full suspension. Most notably, Coinbase has confirmed that its platform will still support an upcoming airdrop of Spark tokens to XRP holders. That said, XRP will remain supported by Coinbase Custody and in the self-custodial Coinbase Wallet.

XRP’s price on Coinbase crashed from around $0.24 in the first 20 minutes of the announcement made on December 28. Subsequently, the cryptocurrency has erased more than 60% from its valuation since the SEC lawsuit was announced last week.

Coinbase noted that the reason for dropping XRP as a traded asset on their platform was because, as the Ripple sought to IPO, being a platform that hosts something that’s a security offering—or has the potential to be—would require updating and adding paperwork to make it legal for retail traders to trade.

Coinbase is the largest cryptocurrency exchange to sever its relations with XRP following the SEC’s lawsuit. This development could spur similar actions among other cryptocurrency exchanges.

Bitstamp and OKCoin announced previously that they were suspending XRP trading and deposits for all US customers on the 8th and 4th of January respectively.

Exchanges that continue to offer XRP without registering as a securities exchange with the SEC risk running into problems with the authorities. However, if Ripple wins this case or gets away with minimal punishment, Coinbase and other exchanges are likely to re-list XRP swiftly.

Alex Kruger, a cryptocurrency trader/analyst, put it more eloquently by saying that “crypto exchanges are unregistered with the SEC (by choice, as registering carries on many burdens and increased costs) and thus it is in their best interest to not offer to trade in securities. It is for their protection, not their customers’.”
Gabriel Shapiro, an attorney with Belcher, Smolen & Van Loo LLP, said in a recent interview that the decision to delist XRP by exchanges is a complicated one, considering both financial and legal repercussions.


Our Opinion
Although the ongoing debacle seems dire, we believe that there’s no cause for panic yet. There’s an opportunity here. US-based exchanges delisting XRP was expected, considering that they have a jurisdictional obligation to adhere to the SEC. These exchanges do it for safety reasons.

In December, Japan announced that XRP is not deemed a security offering. The U.K. made the same announcement earlier.

That said, we believe that this SEC probe is temporal and Ripple will most likely end up with a fine at most. The case is believed to be of low merit, considering that the SEC did not quantify XRP as a security offering some years back. Nonetheless, the price of XRP will be seriously affected when more US-based exchanges suspend the cryptocurrency temporarily, but we expect full recovery next year when this all blows over.

That said, “there’s blood on the streets” and it’s currently a good time to position oneself to profit from the situation. However, we can’t say for sure how far this decline will go, but there’s an opportunity here for sure. As always, we wanted to bring the news to you (our readers) as we usually do when we spot a good trading opportunity.
XRP/USD Price Analysis
At press time, XRP is now sitting deep within the oversold territory—based on our 4-hour MACD indicator. While wild swings are commonplace in cryptocurrency trading, protracted trends are bound to reverse dramatically. Ripple is currently down -30% over the past 24 hours.

Retail trader data shows that about 94% of traders are net-long, with the ratio of traders long to short standing at 17.3 to 1. However, the number of traders net-long is 5% lower than two days ago and 2.8% lower from last week, while the number of net-short is up 53% from two days ago and 36% higher from last week. This indicates that traders are less net-long than two days ago compared to last week.

Nonetheless, recent changes in trading sentiment suggest that the current XRP price trend could see a sharp reverse higher soon.

Meanwhile, XRP’s erratic volatility began when the news about the Spark token airdrop started spreading among traders. The announcement-induced rally caused the cryptocurrency to snap its multi-year trading range between $0.20 and $0.30 and proceed close to $0.90 across several exchanges.

At this point, traders began placing interest in the crypto, which helped it stabilize around $0.60. However, the news about the SEC lawsuit against Ripple broke and sent the third-largest cryptocurrency on a sharp drop to the $0.20 region once again, where it found fresh demand again. Then, the news of Coinbase suspending XRP trading in the coming week sparked a fresh sell-off, which took the price briefly below the crucial $0.20 support.

That said, speculators expect further downsides in the near-term, citing further delisting by exchanges coupled with plunging liquidity as the major catalysts. Already, some large market-making firms that have worked with Ripple have begun cutting ties with the company, which suggests that liquidity will plunge dramatically soon.

However, at press time, the XRP market has seen a healthy recovery from its recent foray from the $0.17 lows to the $0.21 area. This rebound represents a short-squeeze, although it may not last long. Heavy selling pressure can be seen at the $0.24 level, which appears to be a major growth-hampering factor for the XRP.

Furthermore, one analyst has painted a depressing picture of XRP in the coming weeks, as he makes a price prediction between $0.07 to $0.12. He noted that further exchange delisting, liquidity shortage, and the exit of whales will continue to place pressure on the value of XRP. he said “XRP: IMO the dust will settle in the next few weeks/months somewhere in between .07-.12c. Liquidity will dry up. ODL can’t be used on Bitstamp. More exchanges will halt trading. Larger players will continue to de-risk and get rid of excess inventory. Just the way I see it.”

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Nonetheless, the coming days should make things clear for the next directional trend for XRP, keeping the outcome of this prevailing short-squeeze in mind.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

AUDUSD Gains Traction for the 3rd Day in a Row, Nears 0.7750 Level Amid Continuous USD Selling

Azeez Mustapha
31 December 2020 | Updated: 31 December 2020

AUDUSD Price Analysis – December 31

AUDUSD continued its rally and hit 0.7742, its highest level in almost 3 years, at the start of Thursday’s session. Underlying bullish sentiment in global equity markets continued to undermine the safe-haven dollar.

Key Levels
Resistance Levels: 0.8136, 0.8000,0.7800
Support Levels: 0.7635, 0.7571, 0.7414
AUDUSD Long term Trend: Bullish
In a long-term trend, the general downtrend from 1.1079 (high) could have ended at 0.5506 (low). Solid trading above the 38.2% retracement from 1.1079 to 0.5506 at 0.7635 could confirm this bullish scenario. The advance from 0.5506 could be either a resumption of a long-term uptrend or a corrective rally.

A reaction to the key resistance level of 0.8135 will reveal such a scenario. Support is expected at 0.7414, the former double top following the AUDUSD cap in late 2018 and rallying in 2020, until the recent upside breakout. The next level to watch out for is 0.70, and the round number provided worked like a double bottom before the late burst.
AUDUSD Short term Trend: Bullish
A breakout of the 0.7635 resistance level for AUDUSD indicates a resumption of the uptrend. The intraday bias is now rising again. A rise from 0.5506 should target the 61.8% forecast of 0.5506 to 0.7414 from 0.70 to 0.8170 next. On the other hand, a break of 0.7461 support is needed to confirm a short-term top.

However, in the event of a pullback, the trend may remain bullish. The weakness of the dollar as a whole strengthens the “bullish” scenario of the pair. In the short term, the risk remains biased upward on the 4-hour chart despite overbought readings. Another step north should be expected on a break above 0.7800, the nearest resistance level.

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Prevalent Bullish Sentiment Encircles EURUSD at Years End Towards 1.2300 Level

Azeez Mustapha
31 December 2020 | Updated: 31 December 2020

EURUSD Price Analysis – December 31

Buyers of EURUSD are returning to the 1.2300 area at the start of the last day of 2020, however, due to the absence of any new fundamental catalyst, buyers took a short pause and refrained from new heights amid low trading volumes at the end of the year. EURUSD is hovering around 1.2285, while higher highs are still visible.

Key Levels
Resistance Levels: 1.2554, 1.2413, 1.2325
Support Levels: 1.2150, 1.2100, 1.2040
EURUSD Long term Trend: Bullish
Technically, the pair has confirmed a new bullish break of the horizontal resistance line at 1.2272 and looks set to extend its recent upward trajectory. However, the daily RSI is on the verge of breaking into the overbought zone and requires some caution for aggressive bullish traders.

On the other hand, any significant pullback can now be seen as a buying opportunity and remain capped near the 1.2150 horizontal support level. The pair could then become vulnerable to a break below the 1.2042 support level and accelerate the corrective slide towards the 1.1620 buyer confluence zone.
EURUSD Short term Trend: Bullish
The EURUSD breakout at 1.2272 of the previous day’s modified support resistance suggests a resumption of the uptrend and any fall is an opportunity for bulls. Intraday bias began to rise again. The advance from 1.0635 should now target the 61.8% forecast of 1.0635 to 1.2011 from 1.1602 at the next 1.2452 level.

On the other hand, a break of the 1.2150 support level is needed to mark a short-term peak. However, the short-term trend could remain bullish in the event of a pullback. However, sustained trading outside the near 1.2272 level and the 13 moving average gives EURUSD buyers the hope that they will be watching the uptrend line from the end of November.

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EUR/AUD Price Analysis — December 31

Azeez Mustapha
31 December 2020 | Updated: 31 December 2020

The EUR/AUD continued on a bearish decline in the early European session on Thursday, as the risk-backed Aussie soars amid efforts by the ECB to weaken the Euro.

ECB Governing Council Member Oli Rehn reiterated comments made by other ECB members—like President Christine Lagarde, Francois Villeroy de Galhau, and Philip Lane—that ‘jawboned’ the EUR. Comments like that are structured to disrupt the growth rate of the EUR, especially against the US dollar (DXY). In this case, the GCM hinted that if the Euro continues to appreciate the ECB will “do something about it.”

However, except the bank is ready to ease monetary conditions further by cutting interest rates and increasing asset purchase pace, analysts believe that the ECB is just bluffing. Already, the bank had announced earlier in December that its goal at the moment was to maintain its already-eased monetary policy, probably for an extended period. This detail makes analysts even more convinced that the ECB was bluffing when it noted that it could ease monetary conditions further.

Meanwhile, the Aussie got an additional price boost from an upbeat data release from China’s official Purchasing Managers Index (PMI) for December. The National Bureau of Statistics (NBS) of China reported that December’s Manufacturing PMI dropped from 52.4 to 51.9, while the Non-Manufacturing PMI rose past the 56.4 previous readouts to 55.7.

That said, the AUD is expected to keep gaining against the EUR in the coming days.

EURAUD – 4-Hour Chart

EUR/AUD Value Forecast — December 31

EUR/AUD Major Bias: Bearish

Supply Levels: 1.6008, 1.6100, and 1.6200

Demand Levels: 1.5900, 1.5800, and 1.5675

The EUR/AUD currently barrelling towards the 1.5900 level, and we could see lower in the coming days. Bears got a confirmation yesterday following the break below the crucial 1.6008 pivot point.

Meanwhile, the pair is still some distance away from oversold conditions, meaning more declines are likely in the coming days. However, it’s worth mentioning that the current bearish momentum could be negated if the EUR/AUD finds healthy demand around the 1.5900 area.

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BINANCE (BNBUSD) Price: Would the Buyers Defend Support Level at $37?

Azeez Mustapha
31 December 2020 | Updated: 31 December 2020
BNBUSD Price Analysis – December 31

In case the sellers were able to push the price below the support level of $37 and the daily candlestick close below the level, then, the price may decline further to test $31 and $27 support level. Inability to break down the support level of $37, the bullish trend may continue to target the resistance levels at $41, $44 and $48.

GBP/JPY Market
Key levels:

Supply levels: $41, $44, $48

Demand levels: $37, $31, $27

BNBUSD Long-term trend: Bullish

BNBUSD is bullish on the long-term outlook. The coin broke out of the ranging zone on December 19. The bulls acquired more momentum and pushed up the coin to reach a high of $37 on December 20. The resistance at the just mentioned level prevented further increase in price and the price retraced to the $31 support level. The Bears could not maintain the pressure, the price bounced and the $37 level was penetrated and the price reached $41 level yesterday. The bearish momentum opened the market today with the possibility of decreasing further provided the support level at $37 does not hold.

BNBUSD Daily chart, December 31

The 21 periods EMA is below the 9 periods EMA and the coin is trading above the two EMAs at the distance which connotes that the Buyers’ pressure is increasing. The Relative Strength Index period 14 is below 70 levels with the signal lines pointing down to indicate a sell signal which may be a pullback. In case the sellers were able to push the price below the support level of $37 and the daily candlestick close below the level, then, the price may decline further to test $31 and $27 support level. Inability to break down the support level of $37, the bullish trend may continue to target the resistance levels at $41, $44 and $48.

 BNBUSD medium-term Trend: Bullish

The price action of BNBUSD has formed an ascending channel in the 4-hour chart. The price is currently moving towards the lower trend line of the channel. The 9 periods are above the 21 periods EMA and it is trading above the two EMAs which connote an increase in the bulls’ momentum.

BNBUSD 4 hour chart, December 31

The RSI indicator period 14 is at 0 levels and the signal lines bending up to indicate a buy signal.

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NZD/USD Is in an Upward Move, Reaches the Overbought Region above Level 0.7200

Azeez Mustapha
31 December 2020 | Updated: 31 December 2020

Key Resistance Levels: 0.7000, 0.7200, 0.7400
Key Support Levels: 0.6200, 0.6000, 0.5800

NZD/USD Price Long-term Trend: Bullish
The Kiwi has continued its upward move. The pair fell to level 0.7000 but resumed upward shortly. On the uptrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The NZD/USD pair will rise to level 1.272 Fibonacci extension and reverse.

NZD/USD – Daily Chart

Daily Chart Indicators Reading:
The Kiwi has risen to level 70 of the Relative Strength Index period 14. It indicates that the pair is in the overbought region of the market. The 50-day SMA and 21-day SMA are sloping upwardly indicating the uptrend.

NZD/USD Medium-term Trend: Bullish
On the 4-hour chart, the NZD/USD pair has resumed upward after falling to level 0.7083. On December 27 uptrend; a retraced candle body tested 61.8% Fibonacci retracement level. The retracement indicates that the pair will rise to level 1.618 Fibonacci extensions. That is a high of level 0.7207.

NZD/USD – 4 Hour Chart

4-hour Chart Indicators Reading
The 50-day and 21-day SMAs are sloping upward. It indicates that the pair is in an uptrend. The Kiwi is above the 80% range of the daily stochastic. It indicates that the market is in a bullish momentum. Also, the pair has reached the overbought region of the market.

General Outlook for NZD/USD
The NZD/USD pair is in an upward move. The Kiwi has risen to level 0.7189 but it is facing resistance at the recent high. Since RSI is above 70, the pair upward move is doubtful.



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