| Technical recommendations for EUR/USD and GBP/USD on January 6 2021-01-06 EUR/USD  The bulls returned again to last year's high and updated it, despite the preconditions for a correction. In this case, the upward movement continues. The nearest upward target in the higher time frame is the historic high of 1.2555 (2018 high). On the other hand, the current support, which helped the last correctional decline to be completed, remains the daily short-term trend. It is located at 1.2249 today. The next supports will most likely be the levels of 1.2170-84 (historical level + daily Fibo Kijun).  In addition, the bulls managed to retain the key supports of the smaller time frames, completing the correction in their area. After that, they further rise. The resistance of the classic pivot levels 1.2343 (R2) is currently being tested, while R3 is waiting for the pair at the level of 1.2381. Meanwhile, the key support levels are located today at 1.2282 (central pivot level) and 1.2274 (weekly long-term trend). The daily Tenkan (1.2249) is located slightly below it. A consolidation below these three levels will change the balance of power until the afternoon, which may be the beginning of a larger downward correction. GBP/USD  It was not possible to confirm and develop a corrective decline among the bulls, however, the pair continues to remain in the correction zone. It is necessary to exit the correction zone and secure consolidation above the maximum extreme (1.3703) in order for the bullish potential to emerge and be implemented. Today, the main support zones remain at 1.3538-1.3481 (historical levels + daily Tenkan + daily Fibo Kijun) and 1.3404-1.3350 (weekly Tenkan + daily Kijun + daily Fibo Kijun + monthly Senkou Span A).  The bulls are keeping the key support levels (central pivot level + weekly long-term trend), which are now combining their forces around the 1.36 mark. Due to which, they have an initial advantage on the hourly time frame. The upward pivot points within the day are the resistances of the classic pivot levels 1.3659 - 1.3694 - 1.3747. Meanwhile, losing the key supports in the smaller time frames and updating the low (1.3540) will return the pair to significant support and attraction zones in the higher time frames. We consider the zone of 1.3538 - 1.3481 as the first one here. Ichimoku Kinko Hyo (9.26.52), Pivot Points (classical), Moving Average (120) Gold kicks off new year with a surge 2021-01-06 It would seem that there should be a hangover after Christmas and New Year, but the precious metal continues to grow as zealously as it did in 2020. At the end of last year, XAU / USD quotes added about 24% due to a weak dollar and low real rates on US Treasury bonds. The latter were pressured by the growing likelihood of a crackdown on inflation. At the beginning of 2021, the external background did not change at all. The agreement of OPEC + to keep production volumes at the same level within the framework of the collective agreement and the intention of Saudi Arabia to reduce production by 1 million b / d in February-March unilaterally inflated oil futures prices and increased rumors of a rapid increase in inflation. The yield on 10-year TIPS fell to a historically low level, and US inflation expectations for the next 10 years, measured using the break-even rate, jumped to the highest level since 2018. Especially since the ratings signal that two vacant Senate seats will be taken by Democrats. If they manage to take control of both the White House and Congress, Joe Biden will have no problem implementing his idea of increasing fiscal stimulus. This will strengthen the reflationary environment and will contribute not only to the growth of stocks but also gold. TIPS and gold yield dynamics 
Adding fuel to the fire is the Fed's intention to sit on the sidelines until at least 2024. The minutes of the December FOMC meeting, which is scheduled for publication on January 6, will certainly show the Central Bank's intention to maintain the current parameters of ultra-soft monetary policy until the regulator sees steady progress in the area of inflation and employment. The Federal Reserve is ready to tolerate an increase in the index of personal consumption expenditures to 2.5-3%, and this circumstance seriously complicates the status of the US dollar. The worse for the greenback, the better for gold! Thus, in the short term, the fate of the precious metal depends on the elections in Georgia. The "blue wave" can return its quotes above $2000 per ounce, a Republican victory will also not be a disaster. In this scenario, the chances of fiscal stimulus will decrease, but the risks of higher taxes and increased regulation will fall, which will support stocks. The growth of global risk appetite is a reason for selling the US dollar and for the continuation of the XAU/USD rally. In the medium term, investors will return to the topic of pandemic and trade wars. Problems with the production, transportation of vaccines, the reluctance of the population to get vaccinated, as well as the continuation of tense relations between the United States and China under Joe Biden can increase the appetite for reliable assets, contribute to the correction of the USD index and the precious metal. Biden understands that the only way to slow down China is to create a ring of allies around it. The problem is that Xi Jinping also understands this. Technically, a Wolfe Wave pattern was formed on the daily chart of gold with targets at $1990 and $2060 per ounce. The mood remains bullish, so I recommend that if the Democrats win the elections in Georgia, increase the longs formed on the breakouts of the $1890 and $1905 levels for the precious metal. Gold, daily chart 
EUR/USD. Senate election in Georgia continues 2021-01-06 Today, the focus of dollar pair traders is not on macroeconomic reports, or even coronavirus reports, but on the 10-million state in the Southeast United States, where local residents elect Senate representatives. In fact, Georgia's residents have already made their choice – the votes of American voters are currently being counted. This process is exciting, because a) The rivals go side by side; b) The Upper House of Congress is at stake. Given the importance of this event, all other fundamental factors faded into the background – at least for the dollar pairs included in the major group. The news flow about the preliminary election results is controversial. During the Asian session, it was reported that Republicans defended the Senate – according to The New York Times, Republican candidate Kelly Loeffler won 51% of the vote, while Democrat Raphael Warnock received the support of 48% of voters. In another pair of rivals, Republican David Perdue allegedly beat Democratic representative Jon Ossoff by 1.2%. The market calmly reacted to this news, since Georgia is considered one of the base states of the Republicans – representatives of the Democratic Party have not won here for decades. As a result, the US dollar index showed a slight increase, but did not even exceed the 90th mark. In other words, if the situation will not change, the main dollar pairs would have been trading in the same mode, in line with the previous day. 
However, the balance of power changed during the start of the European session. Many American publications, citing their sources, announced sensational news: the Democrats suddenly took the lead. Looking ahead, it is noteworthy that if this information is officially confirmed, and Ossoff and Warnock retain their leadership, Republicans and Democrats will each have 50 votes in the Upper House of Congress. In this case, Kamala Harris, the US Vice President-elect who belongs to the Democratic party, will get the decisive vote. If this happens, it is likely that Democratic representatives will receive full power, who will control the majority not only in the House of Representatives, but also in the Senate. Moreover, the party has a Democrat president who will be able to implement structural reforms that require the approval of legislators. It should be noted that the approval of congressmen is necessary not only for the approval of laws, but also for key personnel appointments. Therefore, the senate election in Georgia is very important for both Democrats and Republicans. But if the former wins, they will receive a kind of huge power control, while the latter will no longer be able to negotiate with the White House using leverage in the form of blocking bills. 98% of the ballots have been processed at the moment. Fox News reported that Democrat Ossoff is ahead of Republican David Perdue (who is the current Senator) by 3,560 votes – this is only 0.08% in percentage terms. In the other pair of opponents, the gap is more significant. Incumbent Republican Senator Kelly Loeffler is behind Warnock by 40,575 votes or 1%. Most American analysts believe that the representative of the Democratic Party has already secured a victory in this pair. In any case, the "all or nothing" principle is applied here: Democrats need the victory of both candidates, so the main attention of traders is now focused on a pair of rivals Ossoff - Perdue. As mentioned above, the gap between them is 0.08%. This is also an important point in the context of further events, since the loser will be able to demand a recount if the final difference between the candidates is less than 0.5%. 
It can be said that the situation is still unclear, and the advantage of the Democrats is minimal. However, the market already considered the headlines, which reported the victory of the Democratic camp a few hours ago. Amid such news flow, the US dollar index collapsed below the 89th mark: the last time it was at such lows was exactly three years ago, in January 2018. The main dollar pairs reacted accordingly: in particular, the EUR/USD pair surged to the support level of 1.2350 (upper line of the BB indicator on the daily chart), but could not impulsively break through it. In my opinion, it is risky to trade the euro/dollar pair as well as other dollar pairs (with the exception of AUD/USD - where the Australian has individual reasons for growth) today, since things may change in favor of the Republican at the end of the day. Moreover, given the fact that the EUR/USD buyers already celebrated the Democrats' victory earlier, a large-scale corrective pullback can be expected. Therefore, it is better not to currently risk it, although the buyers of the pair will most likely approach the limits of 1.24 mark if the preliminary results are confirmed. Analysis of EUR/USD for January 6. Georgia could bring triumph to Democrats. Things to clear up in nearest days 2021-01-06  The wave layout of EUR/USD still indicates that the upward trend is in progress. The wave structure has got more complicated and elongated as the price has made higher highs. Nevertheless, the wave picture looks the same in principle. Only wave 3 in 5 has got lengthier. Now the wave structure clearly consists of 5 waves. Thus, at the moment the currency pair is building wave 5 in 5. If it is true, EUR/USD is expected to continue with a further climb for a while. At the same time, wave 5 could develop into a five-wave structure, so it might become rather lengthy.  Nevertheless, the wave layout of a shorter time frame indicates a possible completion of the upward section even despite complications in building wave 3. The inner wave structure of the expected wave 5 looks rather convincing. At present, its inner wave 5 is underway, but it could finish anytime. The thing is that amid low demand for the US dollar, wave 5 in 5 could get more complicated and lengthy. Everything will depend on market sentiment. Global financial markets opened the new year in quiet trading. The bulk of news and economic data has been coming mainly from the US in late 2020 and early 2021. The event of major importance is the election to the Senate, though the market used to downplay the importance of this event. For your reference, November 3 was the day not only of the presidential election. Americans also voted in the elections to Congress and the Senate. The President-elect has been announced. The results of the election to the House of Representatives are also clear. The Democratic President won the election this time. Democrats also are going to set the tone in the House of Representatives. As for the Senate, it was dominated by Republicans under Donald Trump's presidency. So, it was the Senate which forged ahead with Trump's decisions. Two Senators from each state are elected to the Senate. If the election in a certain state does not reveal a winner, a runoff has to be held. On November 3, only in Georgia neither of the candidates collected over 50% of votes. So, the runoff is scheduled for January 5. In fact, people in Georgia have already voted. Now the results are being counted. According to the latest update, two Democrats are taking the lead in Georgia. As half of the ballots have been already counted, Jon Ossoff has outpaced Republican David Perdue by 7%. Raphael Warnock has outrun Republican Kelly Loeffler by 8%. Certainly, the final count could differ from interim results. The thing is that Republicans need a victory at least of one candidate in this state to maintain control in the Senate. However, if both Republican candidates lose the runoff in Georgia, the Senate will consist of 50% Democrats and 50% Republicans. The decisive vote will belong to Kamala Harris, the new Vice President in Biden's team. This scenario means that all three branches of power in the US will be controlled by Democrats. Conclusions and trading tips EUR/USD resumed building the upward section. Nevertheless, the upward trend is about to complete soon. In the meantime, you are recommended to sell EUR/USD with targets at neat 1.20 and 1.19 at every bearish signal of the MACD indicator. Let me warn you that the wave layout of the uptrend section could evolved into a more complicated and lengthy structure. The expected wave 5 could end up with a complicated and elongated shape. So, it is premature to sell the currency pair. Forecast for GBP/USD, January 6. Donald Trump loses control and support. Traders not scared by possible third lockdown in UK 2021-01-06 
The trend, which started on September 23, has taken a five-wave form. However, wave marking can be complicated many times. The pound sterling is growing. So, the expected fifth wave can also take a five-wave form. If this assumption is correct, then the quote will continue to rise. It may well approach the 40 figure. 
On the chart, wave marking also underwent certain changes. Wave 5 has already taken a more extended form, and if the current wave marking is correct, then wave 3 in 5 is being built at this time. An unsuccessful attempt to break through the 127.2% Fibonacci level indicates a possible formation of an internal correction wave, but the entire wave pattern has not yet taken a complete form. Thus, I'm awaiting when the pair breaks through the 37 figure and continue to grow further. Investors suddenly shifted their attention from the UK to the US. The UK has long remained in the limelight. So, everyone is already used to the fact that news from there shapes the market sentiment. However, the Brexit agreement has been finally signed. Besides, the third wave of the epidemic with a new strain (more contagious) did not scare the markets and did not halt the rally of the pound sterling. Today or tomorrow, we will learn who will control the US Senate. At the moment, the votes are being counted in the state of Georgia, and it is quite possible that two Democrats will win, which will bring their total presence in the Senate to 50. And with Kamala Harris's decisive vote, it is the Democrats who will control the Senate. Yet, Republicans and Donald Trump are facing new challenges. The US president, who will remain in power for two weeks, continues to make attempts to stay in power. However, more and more officials are turning away from him. Not all Republican senators are now ready to support Trump's interests and fight for him. US Vice President Mike Pence said in a personal conversation with Trump that he does not have the authority to somehow influence the results of the election. As a result, both Trump and the Republicans may eventually suffer a crushing defeat. Over the next four years, Democrats can control all power in the country. Today the Governor of the Bank of England Andrew Bailey will deliver a speech. In the evening, the Fed will unveil the minutes of the last meeting. Investors are sure to take notice of these events. Besides, market participants are anticipating the ADP National Employment Report as well as the Services PMI data from the US and EU. Recommendations: The GPB/USD pair is likely to resume the upward movement. Thus, it is recommended to open long deals on this pair after it breaks through the 37 figure with targets located near the 40 figure, within the expected 3 in 5 in 5 wave of the uptrend section. You can also open long deals on the pair after the new signals of the MACD. However, the upward movement is unlikely to last long. When the whole structure comes to completion, it is recommended to open long deals. Trading idea for the GBP/USD pair 2021-01-06  The conclusion of the Brexit trade deal led to a sharp rise in GBP / USD. In particular, it reached a price level of 1.37. But since the UK government decided to impose a national lockdown just recently, it would be best to short the pound, because in such a situation, a price decline is inevitable.  In fact, the quotes have already formed three wave patterns (ABC), in which wave A is the movement observed last January 4. Considering that the market has pulled back above the 50% retracement level, short positions may be opened from the current prices, and the target may be set at 1.35400. Of course, traders have to monitor the risk to avoid losing money. Trading is very precarious, but also profitable as long as the right approach is used. The above strategy uses Price Action and Stop Hunting methods. Good luck! EUR/USD analysis for January 06 2021 - First upside ttarget at 1.2345 reached and potential for second at 1.2420 2021-01-06 UK PM Johnson: The end of lockdown will not be a big bang, will be a slow unravelling Remarks by UK prime minister, Boris Johnson, in parliament - Schools will be the first to reopen
- That moment may come some time in mid-February
Johnson is largely trying to manage expectations as the UK sees a national lockdown until 15 February at the very least currently. There is plenty of talk that this could even extend all the way through to Easter, as the virus situation remains rather severe for now. Further Development 
Analyzing the current trading chart of EUR/USD, I found that EUR tested our first upside target at 1,2345 and that is probably heading towards the second target at 1,2420. My advice is to watch for buying opportunities on the dips with the next target at 1,2420. Stochastic oscillator is in overbought zone but with the fresh bull cross, which is confirmation for the upside movement. 1-Day relative strength performance Finviz 
Based on the graph above I found that on the top of the list we got Live Cattle and Rusell 2000 today and on the bottom Ethanol and Lumber. Key Levels: Resistance: 1,2400 Support level: 1,2310 Trading idea for gold 2021-01-06  Gold has risen in price, more precisely by 540 pips. However, many traders have begun working for a fall, especially those who were inspired by the gap that occurred during the transition from 2020 to 2021. As a result, growth has stalled yesterday and today, and there is a key level ahead, at which the quote is likely to go. This is 1950 or the high reached last November.  At the moment, there are 100 pips left before it, but the breakout itself can be volatile, so the quote may move by another 100 pips. Nonetheless, afterwards, a downward correction may begin, which many are counting on. Therefore, if you want the price to drop today, you should open short positions after a false breakout at 1950, not earlier. This follows the Price Action and Stop Hunting strategies. Of course, traders still need to control the risks to avoid losing money. Trading is very precarious, but also profitable as long as the right approach is used. Good luck! Analysis of Gold for January 06,.2021 - Upside target at $1959 has been reached and potenttial for the next upside target at $2.010 2021-01-06  - Market index 827.2 vs 813.7 prior*
- Purchase index 313.8 vs 318.8 prior*
- Refinancing index 3,917.6 vs 3,803.2 prior*
- 30-year mortgage rate 2.86% vs 2.90% prior*
*data week ending 25 December A modest jump in mortgage activity but this owes more to refinancing than purchases. That said, purchase activity continues to keep at a solid level and that trend in the housing market is likely to continue as rates remain lower for the time being. Further Development Analyzing the current trading chart of Gold, I found that Gold tested our first upside target at $1,959 and that is probably heading towards the second target at $2,010. My advice is to watch for buying opportunities on the dips with the next target at $2,010.. Stochastic oscillator is in overbought zone so there is chance for the pullback first. 1-Day relative strength performance Finviz 
Based on the graph above I found that on the top of the list we got Live Cattle and Rusell 2000 today and on the bottom Ethanol and Lumber. Gold is negative for today but I see no bigger reversal. Key Levels: Resistance: $1,959 and $2,010 Support level: $1,941
Author's today's articles: Zhizhko Nadezhda  Graduated from Irkutsk State University. Having acquainted with Forex market in 2008, followed the courses in the International Academy of Stock Exchange Trading. The agenda was so exiting that she moved to St. Petersburg in order to get professional education. Obtained a diploma of the retraining course on the discipline Exchange market and stock market issues, defended the graduation paper with distinction on the subject "Modern technical indicators as the basis of the trading system". At the moment obtains a master degree in International Banking Institute on specialty Financial markets and investments. Apart from trading is occupied with development of trading systems and formalization of the working strategies using Ichimoku indicator. At the moment is working on the book dedicated to the peculiarities of Ichimoku indicator and its operating methods. Interests: yoga, literature, travelling and photograph. "You can only get smarter by playing a smarter opponent" Basics of Chess play, 1883 "Successful people change by themselves, the others are changed by life" Jim Rohn Igor Kovalyov  Igor Kovalyov was born on September 24, 1985. Igor graduated from Krasnoyarsk State University with a degree in Philology and Journalism. He has a wide experience as a newspaper and information agency correspondent. He got interested in financial markets in 2001. He also graduated from Moscow State University of Economics, Statistics, and Informatics (MESI) with a degree in Global Economics and then served as an analyst in an investment company. He has been working at InstaForex since 2014. Irina Manzenko  Irina Manzenko Alexander Dneprovskiy  Graduated from Kiev State University of Economics. On Forex market since 2007. Started his work at Forex as a trader. Since 2008 is working as a currency analyst. Andrey Shevchenko  Andrey Shevchenko Petar Jacimovic  Petar was born on July 08, 1989 in Serbia. Graduated from Economy University and after has worked as a currency analyst for large private investors. Petar has been involved in the world of finance since 2007. In this trading he specializes in Volume Price Action (volume background, multi Fibonacci zones, trend channels, supply and demand). He also writes the market analytical reviews for Forex forums and websites. Moreover Petar is forex teacher and has wide experience in tutoring and conducting webinars. Interests : finance, travelling, sports, music "The key to success is hard work"
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