Financial Market Research and Analysis

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

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GBPUSD plunges, EURUSD tests 1.1000
EURUSD broke the critical support of 1.1080 (200-day moving average) following the Brexit vote and has stepped in the bearish consolidation zone. The next support level is seen at 1.1000 mark, then 1.0940 (Fibonacci retrace), and at 1.0780 (Fibonacci retrace). Surpassing the 1.1080 resistance level, EURUSD could start to recover towards the critical 1.1195/1.1200 resistance area.

The Japanese stock market bounced to the upside (Nikkei +2.39% Topix +1.77%), but the Yen is still accumulating strength. Today, the USDJPY traded below the 102.00 mark, and the prime minister Abe instructed Finance Ministry to take all the necessary steps and take even more attention into the FX market moves. Next support is the 100.00 mark, then the 98.99 (June 24th low).

Cable opened the week down by two more figures, after last Friday’s big drop. The GBPUSD is testing the 1.3200 mark, while trading at the lowest levels since 1985. A break of this level could cause a new dip to 1.3000 mark. Due to the political uncertainties in UK, we expect the high volatility to be protagonist on Cable for the days ahead.

The AUDUSD hasn’t moved too far away from the levels pre-Brexit event, and is consolidating at 0.7400 mark. Surpassing the 0.7450 (Fibonacci retracement), and then the 0.7467 (100-day moving average), we expect the pair to surge to 0.7595/0.7600 mark and to confirm the bullish trend started in mid-May. A drop below the 0.7400 mark could bring the Aussie to test the 0.7330 (50% Fibonacci retracement), then the critical 0.7300 (200-day moving average).

Gold consolidates gains at 1330$/oz. The political uncertainties in UK and the potential contagion effects, could be a driver to push the prices even higher towards the 1400$/oz within the medium term.

Both crude benchmarks tanked 5% on Friday, due to the global financial markets dip as a result of the UK referendum. Oil priced stabilized on Monday as soon as analysts started confirming that the UK leaving the EU would have a light impact on the physical oil trading. WTI trades below the 47.00$/barrel, with next resistance at 47.35 (Fibonacci retracement) before the 47.95/48.00 mark area. A break below the 46.70$/barrel could push the black gold back to 45.00 mark.

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