Final trading day of the week brings Asian stocks in the red again (NKI -2.27%), despite a Wall Street rally last night. Overnight, U.S. stocks rallied on Thursday erasing most of their losses from the previous day’s sell-off, amid a rebound in OIL prices and indications that the Federal Reserve could delay the pace of its first tightening cycle. 

The collapse in OIL prices has spooked financial markets as investors worried about the health of the global economy, with a slowdown in China and volatility in its markets making for a nervous start to the year. 

In currency markets, the USD is lower against JPY (-0.40%) and EUR (+0.26%) amid negative stock markets in Asia, GOLD regained $1080 and beyond on flight to safety, while commodity currencies AUD (0.6935 -0.9%) and NZD (0.6532 -0.95%) declined. Meanwhile, USD/CAD (1.4458 +0.79%) remains strong amid the weak oil prices. 

Today, US data are in focus with retail sales, empire, industrial production and consumer confidence all up for release.

Trading quote of the day: “More men have become great through practice than by nature.”- Democritus

Green lines are resistance, Red lines are support.

EUR/USD

Pivot: 1.0895

Likely scenario: short positions below 1.0895 with targets @ 1.0835 & 1.08 in extension.

Alternative scenario: above 1.0895 look for further upside with 1.0945 & 1.0975 as targets.

Comment: the upward potential is likely to be limited by the resistance at 1.0895.

GBP/USD

Pivot: 1.435

Likely scenario: long positions above 1.435 with targets @ 1.443 & 1.4475 in extension.

Alternative scenario: below 1.435 look for further downside with 1.43 & 1.4225 as targets.

Comment: the RSI is mixed to bullish.

AUD/USD

Pivot: 0.7

Likely scenario: short positions below 0.7 with targets @ 0.6905 & 0.6865 in extension.

Alternative scenario: above 0.7 look for further upside with 0.704 & 0.7065 as targets.