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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Two trades to watch: EUR/USD, Apple

Article By: ,  Senior Market Analyst
January 28, 2022 8:37 AM

EUR/USD falls ahead of German GDP, US PCE

EUR/USD is falling for a fifth straight session. This week’s hawkish Fed and strong US GDP data boosted the USD to a 19-month high.

Today German GDP data is unlikely to lift the Euro. Economic growth in Germany is expected to have slowed in Q4 to 1.8%, down from 2.5% in Q3. Rising Delta cases, followed by surging Omicron cases, plus high energy prices are expected to have dampened growth.

Eurozone consumer confidence is also expected to confirm a slight deterioration in January to -8.5, from -8.4.

Across the pond US inflation data is expected to show the Fed’s preferred inflation gauge, core PCE rose to 4.8, up from 4.7%. High inflation data could lift the USD.

Where next for EUR/USD?

EUR/USD has been trending lower since early September. After rebounding lower off the falling trendline, EUR/USD closed below 1.1170 the November low. The RSI is showing a bullish divergence, which suggests that momentum is slowing and is sometimes seen before a reversal.

On the upside resistance can be seen at 1.1170 the November low ahead of 1.1230 the December low.

Should the price continue falling, bears could target 1.10.

Apple jumps 5% pre-market after strong results

Apple trades 5% higher pre-market after stellar numbers. Apple saw revenue in the last three months of 2021 hit another record high of $123.9 billion, up 11% from a year earlier, as its services business expanded and as chip shortages did less damage than feared.

Apple reported net profits of $34.6 billion , a 20% jump on the year before and well above the $31.1 billion forecast.

Supply chain issues cost the company $6 billion in missed sales, roughly the same as the prior quarter and better than the $10 billion supply headwinds expected.

iPhone sales were strong, accounting for 58% of total revenue, up from 47% a year earlier.

Where next for Apple share price?

Apple share price has found support on the 100 sma at $158 and is expected to rebound 5% higher on the open, which will take out resistance at $164, the key $168 support turned resistance, exposing the 50 sma at $169.00 and negating the near term down trend. It will take a move over $177 for the bias to turn bullish.


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