Financial Market Research and Analysis

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

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Quite FX trading pre-BoJ, Fed
The FX markets are quiet before the critical Bank of Japan and FOMC meetings.

The EURUSD is rangebound. Trend and momentum indicators hint at a potential re-test of the 1.1140/1.1120 before 1.1085. Intra-day resistances are eyed at 1.1213 (minor 23.6% retracement on Sep 8th to Sep 18th decline) and 1.1225 / 1.1235 (200-hour moving average / major 38.2%).

The USDJPY remains rangebound on the run up to Wednesday’s Bank of Japan (BoJ) and FOMC meetings. Intra-day resistances are eyed at 102.18 (200-hour moving average), 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 seen at 101.42 (Sep 13th low) and 101.20 (Sep 7th low).

The GBPUSD consolidated a touch below 1.3100. The USD leg is expected to define the short-term direction before and after the Federal Reserve (Fed) decision. The critical resistance is eyed at 1.3165 (major 38.2% retracement on Sep 6th to Sep 16th decline). Below this level, the bearish bias should keep pressure on the 1.30 support for a further sell-off toward 1.2950 and 1.2865 (mid-Aug lows).

AUDUSD has cleared the 0.7554 resistance (major 38.2% retracement on Sep 8th to Sep 13th decline) in New York yesterday. The positive bias should encourage a further rise to 0.7587 (Fibonacci 50% level) before 0.7622 (major 61.8% retrace). Minor support is eyed at 0.7511 / 0.7500 (minor 23.6% retrace / ascending baseline). The critical support is seen at 0.7440/0.7420.

Gold is contingent on the US dollar appetite on the run up to Wednesday’s FOMC meeting. 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 $ 1332 (50-day moving average) and $1347, two-week downtrend channel top.

The WTI is preparing to test the $43.50/$43.00 support, if broken, should pave the way for a further slide toward $42.25 and $41.30. Intra-day resistances are eyed at $44.35 (100-hour moving average), $45.00 and $45.90 (200-hour moving average).