Financial Market Research and Analysis

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

CFD trading is high risk and may not be suitable for everyone.
EUR hits the oversold market
The EURUSD further extended losses to 1.0860 in Asia. The 30-day RSI is now at 25.9, suggesting that the oversold conditions could temporarily ease the selling pressures and lend a support to the EURUSD pre-1.0850/1.0800. Intra-day resistances are eyed at 1.0958 (minor 23.6% retracement on Sep 26th to Oct 24th decline), 1.0980 (200-hour moving average) and 1.1020 (major 38.2% retrace).

The USDJPY traded in less than 20 pips range in Tokyo (103.83/104.00). We remain neutral due to a lack of conviction on both directions. Breaking above 104.65, we could see a further attempt toward 105.00, max 105.50. Short-term resistance is eyed at 103.15 (Oct 19th low) before 102.89 (major 38.2% retracement), if broken, should suggest a short-term bearish reversal.

The GBPUSD started the week a touch below its 50, 100 and 200-hour moving averages, 1.2230/1.2260. A positive breakout above 1.2330 (weekly resistance) should encourage a push to 1.2440 (Fibonacci 50% retracement on Sep 28th to Oct 7th crash). A minor support is eyed at 1.2190 (weekly ascending channel base), if broken could pull Cable to 1.2080.

The AUDUSD is testing a critical support at 0.7620 (Fibonacci 50% level Oct 13th to Oct 20th rise). In addition, the 50-hour moving average is preparing to cross the 200-hour moving average on the downside, suggesting the possibility of an enhanced technical correction, which could bring us to 0.7593 (major 61.8% retrace), than 0.7560 (minor 76.4% retrace). Intra-day resistances are eyed at 0.7655 (100-hour moving average), 0.7680 (minor 23.6% retrace) before 0.7730 mid-term resistance.

Gold remains offered below $1278, the 200-day moving average. We could expect a minor correction to $1255/ 1250 (major 38.2% retracement on Dec 16th to Jun 5th rise). Clearing $1278 should pave the way for a rise to $1297 (minor 23.6% retrace).

The WTI trades in between the $50/52 range. A breakout in either direction is needed to assess fresh short-term trend. Below $50.00 (minor 23.6% retrace on Sep 20th to Oct 19th rise), we could expect a further decline to $48.68 (major 38.2% retrace). A move above $52.00/52.60 area should clear the way to $53.00/55.00 mid-term resistance.

CFD trading is high risk and may not be suitable for everyone.