Financial Market Research and Analysis

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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).

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