Technical Analysis

Trade ideas thread – European session 16 January 2023

Major currencies are back to being little changed, with the dollar’s slight losses now being recovered. It’s pretty much looking to be a snoozefest with it being a long weekend in the US as well. USD/JPY has seen a good run lower after the break under 130.00 last week but there might be some position squaring ahead of the BOJ later this week, so as to preventing a further slump as traders stay guarded against any potential BOJ disappointment.

Besides that, equities remain one to watch with the S&P 500 threatening key technical levels as seen below:

It’s another attempted push above the 200-day moving average (blue line) but I’d be more convinced of an upside breakout if buyers can firmly clear the key trendline resistance (white line) more comfortably and also above 4,100.

Elsewhere, gold remains in a good spot technically above $1,900 with the January seasonal tailwind still playing out. Bitcoin’s impressive resurgence is also one that is intriguing in terms of price action, especially if price can look to break back above the $24,000 to $25,000 region. That said, crypto has never been a favourite of mine so I’d not be too keen unless conditions revert back to the sort of easy money days.

What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.

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