Risk off sentiment likely to be short term

18 April, 2016

Following the weekend Doha meeting where oil producers failed to reach an agreement, the markets opened today with risk off the table. Yen gained sharply while the reaction was muted in EURUSD and Gold, indicating that the current risk-off sentiment could be short-lived. Gold is likely to post a pullback ahead of further declines while USDJPY could start pushing higher over the next few days.

EURUSD Daily Analysis

EURUSD (1.12): EURUSD closed the last two daily sessions with a small bodied spinning top/bottom patterns. Prices gapped higher in today's session, and the current declines could see the gap being filled near 1.1284 and could potentially fall to the lower support at 1.120. To the upside, 1.13 will be the resistance level that needs to be broken, which was previously tested on Friday, which could then see a correction towards 1.135. The bias remains to the downside overall as long as EURUSD does not move above 1.140.

USDJPY Daily Analysis

USDJPY (108.0): USDJPY gapped lower in today's session following the reversal pattern last Thursday/Friday. Prices are currently back near the previous lows were seen on 11th April, near 108 region. If this support fails, USDJPY could be looking to post fresh lows with 107.5 likely to be the next target. Alternatively, a bullish close higher could see a potential change of the short-term trend with prices likely to move to 110.67 - 111.43 resistance. Watch the current 4-hour chart unfolds for a potential doji pattern which could validate this view.

GBPUSD Daily Analysis

GBPUSD (1.41): GBPUSD is currently bearish following a minor bounce off the 1.415 - 1.4126 support. However, this bounce failed to see prices test the previous resistance near 1.4263 - 1.4247. A break below the support could extend GBPUSD losses towards the previous support at 1.4045 - 1.4025. Alternately, bounce off this support could keep GBPUSD ranging sideways with a potential to rally to test the previously missed resistance level.

Gold Daily Analysis

XAUUSD (1235): Gold prices are trading above the 1230 support following Friday's bullish close. Further upside in prices could see a retest to 1243.5 which could be extended to 1250. However, the bias remains to the downside at these levels with Gold likely to fall back to 1230 - 1225 and eventually to 1214 followed by 1200. A close above 1240 through 1250 could, however, shift the short term bias to the upside.


Source link  
US dollar hit by Trump's comments

The U.S. dollar fell sharply across the board yesterday after the U.S. President Trump in an interview...

Gold gives up gains

The U.S. dollar lost ground yesterday amid a slow trading day with lack of any clear catalysts for the markets. The speech by Janet Yellen did not offer anything new for the markets...

Inflation in Mexico set to rise on higher fuel prices

Mexico's inflation is likely to be boosted higher as the government announced that it would be hiking fuel prices by nearly one-fifth from January. The government said that fuel price ceilings will be capped between 14.2% - 20% above December's prices...


Regional manufacturing indexes point to a stronger ISM manufacturing PMI

The Institute of Supply Management's Purchase Managers Index data is one of the most widely watched indicators. It is considered to be a leading indicator which gauges the strength in the U.S. manufacturing sector...

USDJPY Trims Gains. Support Seen At 104 - 103

A fairly quiet Monday saw USDJPY retreating from its recent highs ahead of the big events this week. USDJPY has retraced its gains and now trades just above the support level of 104. The markets look to another slow day today with no major events on the tap, leaving the bulk of trading on the technical aspects...

Dollar Supported, Heading Into FOMC

A quiet economic calendar today ahead of the FOMC and BoJ meetings this week could keep prices fairly flat. The US dollar looks well supported moving into the FOMC meeting first which could keep the euro subdued...


EURUSD Remains Supported Above 1.110

The Bank of England's decision to hold monetary policy steady saw the GBP surge against the US dollar, clearing 1.32 with 1.36 now coming into focus...

GBPUSD Moving Closer To Test 1.32. USDJPY Aiming For 104

Political developments in Japan and the UK saw the respective currencies react in the positive. While the GBP managed to close bullish on news that Theresa May is likely to be the new PM...

GBPUSD could test 1.32 on the descending wedge

Markets were trading cautiously yesterday after the initial positive sentiment flipped led by declines in Oil. ADP payrolls report yesterday showed 172k jobs being added to a better than expected jobless claims as well...

  


Share: