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.
Gold recovers to $1220, oil rallies
The EURUSD advanced to its 100-hour moving average (1.0645) and the strengthening positive momentum suggests a further recovery to 1.0730/1.0741 (200-hour moving average / minor 23.6% retracement in Nov 9th to Nov 18th decline). The key upside resistance is seen at 1.0847 (major 38.2% retrace), while intra-day supports should come into play at 1.0610 (50-hour moving average), 1.0570 (Nov 18th dip) before 1.0524 (Dec 2nd 2015 low).

The USDJPY softened to 110.27 in Tokyo and the overbought conditions in the USDJPY (30-day RSI at 80) suggest the possibility of a deeper bearish correction to 110.15 (100-hour moving average), max 108.95 (minor 23.6%retracement on Nov 9th to Nov 21st rise). Light 110.00/110.75-calls are expected to give some support, while positions are mixed at 111.00.

The GBPUSD bounced to 1.2512 on the back of broad based USD unwinds. Top-sellers could benefit from a potential downside correction toward the 1.2455 (50-day moving average) before Wednesday’s Autumn Statement. Intra-day resistances are eyed at 1.2531 (major 61.8% retrace on Nov 18st to Nov 18th decline), before 1.2585 (minor 76.4% retrace). Decent 1.2400-call should give an intra-day support, while put options are touted below 1.2380 for today’s expiry.

The AUDUSD recovered to 0.7404, a touch below the 100-hour moving average (0.7408). Surpassing the 100-hour moving average should encourage a further rise to 0.7420 (minor 23.6% retracement on Nov 8th to Nov 21st slide) and 0.7488/0.7490 (major 38.2% retrace / 200-day moving average). Support is seen at 0.7310/0.7300, max 0.7280.

Gold hovers around its 100-hour moving average, $1220. A further recovery to $1234 (minor 23.6% retracement on Nov 9th to Nov 18th decline) is on the radar. Large $1220-call will mature today and could give a lift to the price of an ounce. Dip-buyers are presumed at $1210/$1212.

The WTI extended gains to $49/barrel. The solid positive momentum could lead to the next key resistance, $50, if broken should give a fresh lift for a re-test of $52.00/52.50 mid-term resistances. Intra-day supports are eyed at $47.53 (minor 23.6% retracement on Nov 14th to Nov 22nd rise), before 46.62 (major 38.2% retrace).
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.