Gold back at 1300 as central banks stand pat on policy

16 June, 2016

Gold prices are back at the $1300 handle as the FOMC, and the BoJ stood on the sidelines. However, the upside in gold is looking weak, unless price breaks clear of the $1300 - $1303 handle. The USDJPY is currently posting fresh yearly lows after the BoJ left policy unchanged at today’s meeting. EURUSD was limited in its gains yesterday despite the FOMC holding policy steady which could see prices trade sideways in the near term.

EURUSD Daily Analysis

EURUSD (1.126): EURUSD bounced off the 1.120 support level and looks to be ranging within 1.130 and 1.120 levels. The minor resistance at 1.130 - 1.1285 was tested briefly yesterday with prices being rejected at this level. A break above 1.130 is required for EURUSD to extend its gains towards 1.1380. To the downside, prices are likely to remain range bound above 1.1217 levels. A break below this support could see EURUSD test the lower end at 1.11430. We could, therefore, expect EURUSD to remain range bound in the near term with further gains or declines coming on a break of the respective resistance or support levels.

USDJPY Daily Analysis

USDJPY (104.3): USDJPY has broken down below 105.60 - 106.27 support levels on the daily chart and price action is now trading closer to 104.50 levels. The further downside could see USDJPY extend its declines to 104 lows. On the 4-hour chart, the Stochastics is pointing to a possible bullish divergence but needs to be confirmed. A correction here could see USDJPY retrace some of its declines.

GBPUSD Daily Analysis

GBPUSD (1.418): GBPUSD managed to find support near 1.4113 at the doji's low formed three days ago. However, resistance at 1.42 is proving hard to break out from which could keep GBPUSD hovering sideways in the near term. Only a break above 1.42 could extend gains towards 1.4425 levels. To the downside, declines could be limited to 1.40530. On the 4-hour chart, we can see that GBPUSD has been forming a base near 1.4148 - 1.41170 support which could limit the declines for now while price could test the resistance to 1.435 on a break above 1.420.

Gold Daily Analysis

XAUUSD (1300): Gold is currently testing the $1300 handle and marks 6-straight days of gains. Further upside could see gold moving towards the 1310 - 1320 resistance levels while the downside looks limited with prices trading above the 1290 - 1291 resistance level, which could be tested for support on a dip. In the near term, 1303 - 1300 marks a strong resistance, which was previously formed in early May and further upside can be expected only on a break above this minor resistance.


Source link  
Markets cautious on trade tensions

The markets were trading cautiously albeit amid a slight risk-on sentiment prevailing. US stocks closed slightly higher while safe haven assets shed...

Risk off sentiment sends gold higher

Investors continued to shun risk assets on Thursday amid a mix of global themes. The stalemate in the US and China talks alongside rumors that the US...

Market Reaction As Higher Tariffs Kick In

The markets were trading mixed by Friday's close after the tariffs on goods imports from China were hiked from 10% to 25%. This came as the US and China...


USD Strengthens On ADP Payrolls

The latest monthly private payrolls data from ADP/Moody's Analytics showed that employers added 275k jobs in April. This beat estimates of a 181k increase...

BoC Holds Rates Steady

The Bank of Canada's monetary policy meeting yesterday saw the interest rates unchanged at 1.75%. However, the central bank cut the GDP forecasts...

Markets Open To A Quiet Trading Day

Economic data is sparse with only the release of the US new home sales report later in the day. The quiet start to the week comes ahead of some key...


Dollar Muted As Equities Rally Ease Off

The US dollar closed Monday's session unchanged as earnings reports from Goldman Sachs and Citi Group missed expectations, blaming the US economy....

Market Risk Appetite Wanes

The International Monetary Fund (IMF) cut its global growth outlook once again. For the year 2019, growth is forecast to rise by 3.3% compared...

USD retreats as factory orders weaken

The monthly factory orders report showed a 0.5% decline on the month matching estimates. The declines in February marks a fourth consecutive...

  


Share it on:   or