USD/JPY sideways theme remains intact in the first half of the week. The rising wedge pattern can limit bullish advances. USD/JPY daily chart USD/JPY is extending the ranging theme for the 10th consecutive day as the spot is trading off February highs and below the 110.00 figure. The quote is trading above the main daily simple moving averages (SMAs) on the daily time frame. USD/JPY four-hour chart USD/JPY broke below a rising wedge formation while above the 100/200 SMAs. The quote is trading sideways below the 109.94 resistance and the 50 SMA on the four-hour chart. Bears are probably looking for a break below the 109.58 support and to drive the market towards 109.30 and 108.95 price levels. On the flip side, a daily close above the 110.15 resistance might invalidate the bearish scenario, according to the Technical Confluences Indicator. Resistance: 109.94, 110.15, 110.32 Support: 109.58, 109.30, 108.95 Additional key levels

XAU/USD bulls are eying at the 2020 highs. Buyers' short term targets can be located near the 1610.30 and 1614.31 levels. Gold daily chart XAU/USD is trading in a bull trend above the main daily simple moving averages (SMAs). Gold is rising in a bullish channel as the market is challenging $1600 per ounce. Gold four-hour chart XAU/USD is breaking above the 1600 mark. Bulls want to extend gains towards 1610.30 and 1614.31 resistance levels as bulls remain firmly in control. On the flip side, pullbacks down may find support near the 1589.38, 1584.39 and 1579.40 levels, according to the Technical Confluences Indicator. Resistance: 1599.35, 1610.30, 1614.31 Support: 1589.38, 1584.39, 1579.40 Additional key levels

China will stabilise foreign trade, foreign investment and consumption to minimise the impact of the coronavirus outbreak, China’s Commerce Ministry said on Tuesday. "China will encourage firms to boost imports of medical supplies and agriculture goods," the statement further read, per Reuters. "Will step up polices to stabilise foreign investment, underpin confidence of investors." Risk aversion This statement failed to provide a boost to market sentiment. As of writing, the Dow Jones Industrial Average was down 0.6% on the day and the 10-year US Treasury bond yield was erasing 2.55%.

GBP/USD is gaining steam above the 1.3000 figure. The level to beat for buyers is the 1.3080 resistance. GBP/USD daily chart Following the October and December bull-run, pound/dollar is trading in a rectangle consolidation above the 100/200-day simple moving averages (SMAs). The spot is trading below the 1.3100 and 50 SMA. GBP/USD four-hour chart The pound is rebounding from the 1.3000 support while challenging the 200 SMAs on the four-hour chart. Bulls seem unwilling to let go, however they need to overcome the 1.3080 level to reach the upper side of the range near 1.3125 and 1.3160 levels. Supports are likely located near 1.3000, 1.2958 and 1.2931 level, according to the Technical Confluences Indicator. Resistance: 1.3080, 1.3125, 1.3160 Support: 1.3000, 1.2958, 1.2931 Additional key levels

German ZEW Economic Sentiment slumped to 8.8 in February vs. 21.5 expected. NY Fed's Empire State Manufacturing Index rose sharply in February. US Dollar Index rose toward 99.50 but lost its traction. The EUR/USD pair came under strong selling pressure in the early trading hours of the American session and touched its lowest level since April of 2017 at 1.0786 before staging a rebound. As of writing, the pair was trading at 1.0813, still down 0.2% on a daily basis. The broad USD strength seems to have triggered the selloff. After the Federal Reserve Bank of New York announced that the headline General Business Conditions Index of the Empire State Manufacturing Survey surged to 12.9 in February to beat the market expectation of 5, the US Dollar Index (DXY) gained traction and advanced to its highest level since early October at 99.47. However, the poor performance of the US Treasury bond yields made it difficult for the USD to preserve its bullish momentum and helped the pair ..

AUD/USD is having a modest bounce after bears attempted to reach the 2020 low. AUD/USD is consolidating losses near the 0.6700 figure. AUD/USD daily chart The aussie is bouncing from one-decade lows while trading well under its main daily simple moving averages (SMAs). AUD/USD tried to reach the 2020 low but is finding some support as the market is staying in a range near the 2020 lows. Bears want to resume the bear trend by breaking below the 0.6668 support and targetting the 0.6640 and 0.6626 levels. On the flip side, bulls want to create a reversal up and overcome several layers of resistance to reach the 0.6753 level, according to the Technical Confluences Indicator. Resistance: 0.6700, 0.6723, 0.6753 Support: 0.6668, 0.6640, 0.6626 Additional key levels

Coronavirus supply chain issues may have a lingering effect on the US technology sector, Fitch Ratings said on Tuesday, as reported by Reuters. "Near-term revenue weakness caused by supply chain disruptions and reduced demand in China is a likely outcome for the US technology companies," the report read. "COVID-19 adds additional risks to the US technology sector's china-centric supply chains." Fitch further noted that the impact could be more disruptive is the coronavirus situation drags into March and April. Tech shares underperform on Tuesday The S&P 500 Technology Index is down 0.6% in the early trade. Apple shares, which warned that sales in Q1 could fall short of its target amid coronavirus, are leading the losers with a 2.5% drop.

DXY pushes higher and clinches new yearly highs near 99.50. Renewed concerns around the Chinese coronavirus support the dollar. NY Empire State index came in above expectations in February. The US Dollar Index (DXY), which tracks the greenback vs. a basket of its main competitors, is trading on a firmer footing and printing new peaks in the mid-99.00s on Tuesday. US Dollar Index stronger on risk-off mood, EUR-selling The index has picked up extra pace in the first half of the week and printed new highs in the vicinity of 99.50, levels last seen in October 2019. The rally in the buck thus remains unaltered despite current overbought levels (RSI around 75.0) and after posting gains in ten out of the last twelve sessions (up more than 2% in February). Positive results from the US fundamentals, renewed risk-off sentiment on the back of the fast-spreading COVID-19 in China and, mainly, the exacerbated weakness around the euro have all been sustaining the sharp advance of DXY so far th..

National security shouldn't be used as an excuse to make the United States a difficult country to trade with, US President Donald Trump argued in a Twitter thread on Tuesday. "The United States cannot, and will not, become such a difficult place to deal with in terms of foreign countries buying our product, including for the always used national security excuse," Trump tweeted out. "We want to sell product and goods to China and other countries. That’s what trade is all about. We don’t want to make it impossible to do business with us." Trump concluded by saying that he wants to make it easy for other countries to do business with the US and added: "The United States is open for business." Market reaction These comments failed to help the market sentiment improve and Wall Street's main indexes are down between 0.2% and 0.4% in the early trade.

Apple shares suffer heavy losses on coronavirus warning. Falling crude oil prices weigh on the Energy Index. Major equity indexes in the US started the day in the negative territory to follow their Asian and European counterparts on Tuesday. Resurfacing worries over the negative impact of the coronavirus outbreak on US corporations and the global economy seems to be hurting the market sentiment. As of writing, the Dow Jones Industrial Average was down 0.3% on the day while the S&P 500 and the Nasdaq Composite were both erasing 0.2%. Reflecting the flight-to-safety, the CBOE Volatility Index is up nearly 10%. Apple shares fall sharply to weigh on tech shares Tech giant Apple warned that the company could miss its sales and profit targets for the first quarter citing production disruptions and store closures in China. With Apple shares losing more than 2% following the opening bell, the S&P 500 Technology Index is down 0.75% as the worst-performing major sector. In the meantime, th..