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.
USD pares losses, GBP stabilises
The EURUSD rebounded from 1.1100 on Friday and stepped in the bullish consolidation zone. The 1.1160 level (major 38.2% retracement on Sep 30th to Oct 10th) should give support to further recovery toward 1.1216 (minor 76.4% retrace) and 1.1250. Intra-day resistance is seen at 1.1200 (200-hour moving average), while a fall below 1.1160 could encourage a further sell-off to 1.1138 (minor 23.6% retrace).

The downside correction in the USDJPY is expected to hit the major support at 102.60 (major 38.2% retracement on Sep 27th to Oct 6th) for a renewed attempt to 104.20 before 104.50/105.00. Breaking below the 102.60, we could see a deeper correction to 102.25 (200-hour moving average), 102.12 (major 50%).

Following Friday’s flash crash, the GBPUSD is stabilized at 1.2386 – 1.2472 range in Asia. The recovery is underway. The 1.2295 (major 38.2% retracement on Sep 29th to Oct 7th crash) should lend support for a potential recovery above 1.2490 (50-hour moving average), 1.2618 (100-hour moving average), 1.2790 (200-hour moving average).

The AUDUSD continues its slow yet sustained journey south as the appetite in carry trades deteriorates. Trend and momentum indicators remain negative below 0.7612 (major 38.3% retracement on Sep 15th to Sep 29th rise) for a further slide toward 0.7552 (major 61.8% retrace) and 0.7515 (minor 76.4% retrace) is on the radar. Surpassing 0.7612, the AUDUSD should face sellers at 0.7632 (200-hour moving average), before 0.7650 (minor 23.6% retrace).

The selling pressure on gold remains intact below the 200-day moving average ($1274). Lack of appetite in the yellow metal, combined with a stronger US dollar, could pave the way toward $1210 (Fibonnaci 50% retracement on Dec 16th to Jun 5th rise). A successful recovery attempt above $1274, should encourage a rise to $1297 (minor 23.6% retrace).

WTI tests the $50/barrel level. The sentiment remains positive for a sustained recovery above the $50. The market remains buyer-in-dips above $48.90 (minor 23.6% retracement on Sep 20th to Oct 3rd rise) and $47.78 (major 38.2%).
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.