Financial Market Research and Analysis

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G10 rangebound after soft US data
The EURUSD traded in a tight range between 1.1235/1.1240 (zone including the 50, 100 and 200-hour moving averages) and 1.1248 (major 38.2% retracement on Aug 31st to Sep 8th rise) in Asia. The fading Federal Reserve (Fed) rate hike expectations should encourage a push toward 1.1279 (minor 23.6%) 1.1312 (ascending channel top). Clearing the 1.1240/1.1235 support, the pair should challenge the 1.1200 (50% retracement) before 1.1171 (minor 76.4%).

The USDJPY remains rangebound, with a slightly negative bias on softer Fed expectations. Intra-day resistances are eyed at 102.25 (100 and 200-hour moving averages), 102.75 (50% retracement on Sep 2nd to Sep 7th pullback), 103.12 (major 61.8%), 103.57 (minor 76.4% and ascending channel top). Intra-day supports are presumed at 101.93 (minor 23.6%), 101.42 (Sep 13th low) and 102.20 (Sep 7th low).

The GBPUSD held ground at 1.3179 despite the Bank of England’s (BoE) dovish stance at yesterday’s MPC meeting. Cable will step in the short-term bullish consolidation zone above 1.3255 (major 38.2% retracement on Sep 6th –- Sep 14th decline). There is room for a mid-term extension of 1.3642 (major 38.2% retracement on post-Brexit sell-off) below which the mid-term trend remains bearish. Intra-day supports are seen at 1.3210 (minor 23.6% retrace on Sep 6th –- Sep 14th decline) and 1.3138 (Sep 14th double bottom).

AUDUSD recovers on the back of a softer US dollar. The key short-term resistance is eyed at 0.7554 (major 38.2% retracement on Sep 8th to Sep 13th decline), if surpassed, should push the AUDUSD in the short-term bullish trend for a further attempt to 0.7622 (major 61.8% retrace). The critical support is seen at 0.7440/0.7420.

Gold shortly traded below the $1310 in New York, before the soft US data hit the Fed hawks and gave a positive spin to the precious metal. The $1305 / 1297 zone (100-day moving average / minor 23.6% retracement on Dec’15 – Jul’16 rise) is seen as a solid mid-term support, while the upside is expected to remain capped at $ 1334 (50-day moving average) and $1350, two-week downtrend channel top.

The WTI extended losses to $43.25. A minor support is seen at $43.00 and any upside attempt is likely to see resistance at $44.10 (minor 74.6% on Sep 1st to Sep 8th recovery), $44.80 (major 61.8%), Offers are presumed at $45.23 (200-hour moving average), $45.35 (major 50% retracement on Sep 1st to Sep 8th recovery).

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