Follow through from Friday likely

27 June, 2016

The markets gapped lower this morning with the sterling in the eye of the storm. With the UK plunging into political uncertainty with many questions and few answers, the markets are bearing the brunt. Gold prices remain poised to the upside amid this uncertainty while the US dollar is mixed, stronger against most of its peers but weaker against the yen. USDJPY is looking biased to the downside and could potentially look at another go to breaking below the 100Yen level.

EURUSD Daily Analysis

EURUSD (1.102): EURUSD gapped lower this morning, opening at 1.1010 with a brief test to the support at 1.10 level. To the upside, the resistance at 1.1143 could be in for a retest yet again. To the downside, a break below 1.0985 is required for EURUSD to post further declines to 1.09 while the longer term declines could see an extended move to 1.08. If EURUSD manages to break above 1.1143 resistance, the further upside to 1.1217 could be tested. However, price action remains caught within 1.130 and 1.10 levels.

USDJPY Daily Analysis

USDJPY (101.9): USDJPY is attempting to find support near the 100 - 101 levels after a modest gap lower this morning. On the 4-hour chart, we notice a bearish pennant pattern being formed at the current levels. Support is seen at 101.25, and a break below this level could see USDJPY resume its declines. Based on the measured move, USDJPY could slip towards 98.25.

GBPUSD Daily Analysis

GBPUSD (1.3404): GBPUSD remains weak to the downside, with prices opening this morning at 1.3427. There is a minor support seen at 1.3385 levels which will be key as a break below this level could see EURUSD slip towards 1.3350 and eventually to 1.330 in the near term. To the upside, any gains are likely to be capped near 1.3850.

Gold Daily Analysis

XAUUSD (1324.82): Gold prices remain biased to the upside following a pullback to 1317 on Friday. The bullish pennant pattern remains in play, and any downside is limited to 1310 - 1300 levels in the near-term while to the upside 1371 - 1372 remains the measured target. In the event of a break down below 1310 - 1300, gold prices could shift the bias to the downside with the next support at 1290 coming into the picture while also invalidating the bullish pennant pattern.


Source link  
Demand for gold grows amid growing tensions

Gold is gradually recovering its previously lost positions amid falling expectations of investors regarding the results of a new round...

Asian stocks unable to follow US market lead

Asian stocks are mostly lower, unable to keep in step with the S&P 500 that erased early losses to close higher on Thursday. US equities saw a boost...

Australia stocks slide as growth risks mount

Global stocks declined as traders reacted to weak manufacturing numbers from the United States. Yesterday, the Dow dropped by more than...


The Shifting Sand of Brexit

Backstop or should we say clearance centers or is that a backstop with a time-limit? Brexit takes 2 steps forward, 3 steps back, one step forward...

WTO cuts outlook for global trade growth

A gloomy outlook is hanging over financial markets after the World Trade Organisation (WTO) joined the growing list of major institutions expressing concerns...

Euro on the verge of collapse

Trading on the pair fluctuated throughout the day. The bears took advantage of the rise to 1.0967 to open some short positions. The euro is still...


Trump’s impeachment inquiry is just a distraction

Investors were caught by surprise when the Speaker of the US House of Representatives Nancy Pelosi announced on Tuesday that...

The euro showed moderate growth

The British pound showed growth against the US dollar yesterday, recovering from new local lows of September 17. The growth of the instrument...

Impeachment risks rising

Take a step back, however, and look at what we've seen in the 12 hours or so. Firstly, consider a ruling that the UK Prime Minister offered...

  


Share it on:   or