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.
GBP rebounds 1.15% after sharp fall
The EURUSD is steadily moving toward the 1.1000 handle on the back of a solid USD appetite. The Federal Reserve (Fed) meeting minutes due today should distinguish between a slide below 1.10, and a rebound off this level. The negative bias should remain below the 1.1115 (major 38.2% retracement on Sep 30th to Oct 12th decline). Intermediate resistance is eyed at 1.1083 (minor 23.6%).

The USDJPY traders remain seller-at-dip above the critical 102.60 level (major 38.2% retracement on Sep 27th to Oct 6th & 200-hour moving average). The developing positive trend, sustained by higher US yields and stronger US dollar, should encourage an attempt to 104.20 before 104.50/105.00. Breaking below the 102.60, we could see a deeper correction to 102.12 (major 50%).

The GBPUSD rebounded 1.15% in Asia after falling another leg down to 1.2088 on no news, suggesting that the market remains heavily short-GBP on the back of the rising Brexit concerns. The oversold conditions on daily basis should encourage a minor recovery, yet the 1.2295 (major 38.2% retracement on Sep 29th to Oct 7th crash) should be cleared to send Cable to the bullish consolidation zone for a solid recovery to 1.2402 / 1.2440 (100-hour moving average / Fibonacci 50% level) before 1.2585 / 1.2618 (major 61.8% retrace / 200-hour moving average).

The AUDUSD rebounded from 0.7530, the downtrend channel’s base building since Sep 29th. We turn neutral and watch the critical 0.7619/0.7612 resistance (200-hour moving average / major 38.2% retracement on Sep 15th to Sep 29th rise), which should distinguish between a short-term bullish for a re-test of 0.7650 / 0.7710 area (minor 23.6% retrace / Sep 29th high) and a further drop to 0.7515 (minor 76.4% retrace) before 0.7455 (Sep 15th low), mid-term support.

Gold remains little changed. The 200-day moving average ($1274) remains the major mid-term resistance as traders disinvest along with the improvement in US yields. Support is eyed at $1250/$1245 before $1210 (Fibonacci 50% retracement on Dec 16th to Jun 5th rise). Only a successful recovery attempt above $1274, could encourage a rise to $1297 (minor 23.6% retrace).

WTI consolidates gains above the $50/barrel level. The sentiment remains positive for a further recovery toward $53/$55. The market remains buyer-in-dips at $50.15/$50 (minor 23.6% retrace on Sep 20th to Oct 10th rise / 200-hour moving average), $48.92 (major 38.2% retracement).