Financial Market Research and Analysis

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

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JPY strengthens as BoJ disappoints
Euro extended gains against the US dollar on Friday morning. The EURUSD climbed above the 1.1100 mark and is heading toward the 1.1125 resistance (200-day moving average). If this level is cleared, we could expect a new upside towards the 1.1198/1.1200 resistance (Fibonacci retracement). The first support is seen at 1.1070, if cleared, could hint at a setback to 1.1000 mark and lower to 1.0940 (Fibonacci retracement).

USDJPY broke the 50-day moving average on the downside and is now trading right above the 103.00 mark, with next support seen at 100/99.98 (July 8th low). The market is now counting on a potentially huge fiscal stimulus package from the PM Abe. If this is the case, we could see a retracement above the 104.25 resistance (Fibonacci retracement), then towards the 105.00 mark. Above 105, a further extension to 107.00/10750 (100-day moving average & Fibonacci retracement) could be expected.

Cable has been trading on the sidelines for the second half of July. The next resistance is eyed at 1.3289 (July 22nd high), if surpassed, the GBPUSD could recover to 1.3400/1.3415 (Fibonacci retracement), then towards 1.3500/1.3532 (June 29th high). The first support can be found at 1.3056 (July 26th low), if broken, could trigger a further sell-off towards 1.2850 (July 11th low).

AUDUSD is trading firmly above the 0.7500 mark, with next resistance eyed at 0.7593/0.7600 mark (Fibonacci retracement). The 50-day moving average crossed above the 100-day moving average, providing a new bullish signal. The pair could break above the 0.7600 mark and extend gains to 0.7700, then towards 0.7834 (April 21st high).
The first support is seen at 0.7465 (100-day and 50-day moving average), if broken, could encourage a further slide to 0.7400 and 0.7345 (200-day moving average).

Gold is consolidating at $1333. The trend remains bullish and the next resistance is eyed the $1374 (July 11th high). Above that level, the price could push towards $1400 mark. The first support is seen at $1310 (July 21st low), if broken, could encourage a slide to $1297 (Fibonacci retracement).

Oil has cheapened for the 7th session in a row, WTI is trading at $40.70 and we could see a further downside to $40 if the intraday low $40.55 is broken.
The first resistance is seen at $41.00/41.15 (intraday high) and if this is surpassed, we could have an upside towards $41.73 (50-hour moving average). Above this level, the price could recover to $42.00/42.20 (Fibonacci retracement), then to $43.00/43.25 (major Fibonacci retracement) and to 43.84 (200-hour moving average).

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