Financial Market Research and Analysis

Our analysts have their fingers on the pulse of the world's financial market news.

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Cable above 1.32, Gold drops
EURUSD is trading almost flat at 1.1265 on Thursday. Breaking the neckline support 1.1244 (August 24th low) of the double top pattern (August 18th high and August 23rd high) could cause a drop to 1.1205/1.1200 (100-day moving average) and to the critical 1.1150 (200-day moving average). Looking at the upside, after surpassing 1.1300 mark, the pair could break the 1.1365 (August 18th high) and target the 1.1500 mark.

USDJPY trades at 100.40. A step above the 100.93 (August 22nd high) could trigger a move towards 101.45 resistance (August 15th high), 102.65 (August 8th high), and the 103.25 (50-day moving average). Clearing the critical 100.00 support could cause a drop to 99.53 (August 16th low) and 98.99 (June 24th low).

After a three-day winning streak, Cable consolidates gains on Thursday morning. GBPUSD is expected to rise towards 1.3370 resistance (August 3rd high), before the 1.3500 mark. Support is provided at 1.3136 (50-day moving average), if broken, could cause a further sell-off to 1.3030/1.3000 (August 21st low).

The Aussie recovers against the US dollar. The next resistance is seen at 0.7654 (August 23rd high), above which the pair could rise to 0.77 mark, before 0.7755 (August 10th high) and 0.7834 to (April 21st high). Breaking below the 0.7596 (50-day moving average), the pair is expected to drop to 0.7500 then 0.7460 (100-day moving average).

Gold broke the 50-day moving average to the downside, after a four-day losing streak. Currently, the yellow metal is attempting a bounce to $1325. A step above the $1333 resistance (50-day moving average) could encourage a further rise to 1358 (August 16th high) and towards $1374 (July 11th high), before $1400. A break below the 1310/1300/1295 (July 12th low, and 100-day moving average), is likely to cause a drop towards $1250 (June 24th low).

Higher US oil inventories (actual +2.5M barrels against -0.5M barrels expected) weighed on oil yesterday. All eyes are on the Jackson Hole Symposium starting today. WTI is trading on the sidelines right below the $47 a barrel. Surpassing the $47.23 (200-hour moving average), it could gain momentum to $48.29 (August 23rd high), then towards $50 a barrel.

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