4 July, 2016
Gold prices rallied early today testing the 1350 resistance as noted over the past few days. Further upside is likely to continue if price clears the 1350 handle which could keep gold testing 1371.90. EURUSD is also inching higher having cleared 1.110 support as 1.120 target remains in sight. GBPUSD is expected to remain range bound in the near term.
EURUSD Daily Analysis
EURUSD (1.113): Having posted a fairly decent recovery after closing Friday's session at 1.1132, EURUSD remains supported above 1.110 support and is now likely to push higher to 1.120 resistance level. The 4-hour chart shows prices breaking above 1.1126 minor resistance level confirming the view with the bias to the upside. Alternately, with prices above the support zone of 1.1126 and 1.110, a break below this support zone could invalidate the upside bias and we could expect EURUSD to push back lower below 1.110 and 1.10.
USDJPY Daily Analysis
USDJPY (102.9): USDJPY remains supported above 102.0 level. However, with prices breaking below the trend line and trading below 103 resistance, we could expect some downside. Overall, USDJPY remains caught within 103 and 102 levels in the near term. Support is seen at 102, but a break below could extend declines to 101 - 101.26. To the upside, a bullish breakout above 103 is required to validate the move towards 104 resistance. Price action has formed a bearish flag pattern as well, which could put USDJPY to the downside on a break below 101.26 - 101 support which could see a decline back to the 100 level psychological barrier.
GBPUSD Daily Analysis
GBPUSD (1.328): GBPUSD has been consolidating above 1.32 support with prices ranging below the resistance of 1.34. The consolidation could see a breakout in either direction. To the upside, above 1.34, GBPUSD could extend its gains to 1.36 as the next main level followed by closing in on the unfilled gap at 1.3677. While to the downside, below 1.32, GBPUSD will need to clear the minor support through to 1.3121 before further downside can be expected.
Gold Daily Analysis
XAUUSD (1345.87): Gold prices have been testing the 1350 resistance as noted over the past few days following the breakout of the consolidation near 1327.5 and 1310. Expect gold to consolidate at the current levels with support no at 1327.5. To the upside, further gains could be seen only above 1350 with the next target coming in at 1371.90.
The U.S. dollar fell sharply across the board yesterday after the U.S. President Trump in an interview...
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...
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...
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...
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...
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...
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...
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...
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...
|8||Fort Financial Services||67%|