Our analysts have their fingers on the pulse of the world's financial market news.
EURUSD recovered to 1.1045 on broad based USD weakness. The key mid-term resistance at 1.1047/51 (200-dma / Fib 38.2% retrace on Dec-Feb rise) is expected to shelter some offers before this week’s ECB meeting. Above this area, vanilla calls at t 1.1050-1.1100 would however be supportive of a further advance to 1.1175 (minor 23.6% retrace on Dec-Feb rise) and 1.1376 (Feb 11th high). Below 1.1047/51 area, the EURUSD is considered in the bearish trend with the possibility of pullback to 1.0826 (Mar 2nd low). A break below this level could pave the way to 1.0800/10 (February lows) then all the way down to the 1.0725 (minor 74.6% before 1.0524 (Dec low).
USDJPY consolidated above the 113.50, minor 23.6% retrace on Feb decline. Trend and momentum indicators remain marginally positive suggesting that a recovery toward 115.08 is still possible (major 38.2% retrace, 115.08, on Jan 29 – Feb 11 slide). Surpassing 115.08 will signal a potentially sustainable recovery to 116.34 and 117.60 (Fib 50% and 61.8% retrace). Support is seen at 113.50/30 (Fib level) before 112.00, last week’s low. The key support stands at 110.99 (Feb dip).
GBPUSD extended gains to 1.4276. Trend and momentum indicators are stronger for a break above the 1.4300 and an advance to .4350. Support is eyed at 1.4154, major 38.2% on February-March decline, if broken could signal a further pullback to 1.4032/1.4000 (minor 23.6% / psychological support).
AUDUSD consolidates gains above 0.7385 (major 38.2% on May’15 – Jan’16 slide / Dec’14 high) despite the dramatic slump in Chinese exports/imports. It appears that the 18.59% jump in iron ore tempered the sell-off in Sydney. The pair is still in the bullish consolidation zone with the possibility of a further rise toward the 75 cent mark (which is also the Fib 50%). On the downside, 0.7341 (major 38.2% retrace on Feb 29th – Mar 7th rise) is expected to lend support to the current bullish development. More support is seen at the critical 200-dma (0.7251).
Gold consolidated gains between $1256/1259 as the Fed expectations remain soft. The upside momentum is picking up for an extension toward $1300 mark. Support is eyed at $1250/1245 (March 3rd, pre-NFP low/ 200-hma).
Brent hit $41 for the first time in three months, WTI traded above $38 yesterday. The worrisome trade figures from China curbed appetite earlier in the session. Trend and momentum indicators are positive, the RSI (67%) is not in the overbought territory yet, suggesting that there is potential for a renewed attempt to extend gains above the 100-dma ($37), and even to target the $40 mark. On the downside, support is seen at $34.30 (200-hma), then at the 50-dma ($32.35). If support at this level is broken, we could expect to see a further fall to $31.95 (21-dma) before considering a potential a re-test of the $30 mark.
European markets look set to turn lower at the start of trading on Monday. The new US and Chinese tariffs take effect today so traders in Asia and Europe look cautious. Both continents are more exposed to global trade than the US. For markets, the new tariffs …Read more
Whilst risk sentiment has been healthy across the week, this swelling optimism boosted US stock markets to an all-time high overnight. A rally in tech stocks, which have done a lot of lifting for the indices over the year, in addition to fading concerns over U…Read more
Despite a shaky end to trading on Wall Street overnight, which saw the Dow gain 0.6%, the S&P just 0.1% and the Nasdaq slip by the same, Asian markets moved broadly higher on improved sentiment. European bourses are taking the lead from the US over Asia, w…Read more
Asian markets took the lead from Wall Street overnight, rallying as the latest tit for tat measures in the escalating trade spat have not been quite as severe as the markets had been expecting. Tech stocks were also heavily in demand, bouncing back after steep…Read more
Traders are faced with a sea of red in risk-off trading as markets are set to open on Tuesday. Despite the fact the market has been expecting an escalation in trade tensions between the world’s two largest economies with further tariffs from Trump; the reality…Read more
Escalating trade tensions will once again be a central theme to driving sentiment and trading this week, with President Trump widely expected to levy tariffs on a further $200 billion worth of Chinese imports, potentially as soon as today. The elevated trade c…Read more
European bourses are set to take the lead from a positive session on Wall Street and Asia overnight. A drive higher from tech stocks on Wall Street helped lift Asian equities after their recent battering, pulling them off 2-year lows.
Asian markets were endin…Read more
Today will be a busy day for traders with 2 central bank rate decisions and US inflation data all due for release within a few hours of each other. The BoE monetary policy announcement will kick things off, followed shortly after by the ECB rate announcement a…Read more