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.
Pound’s belated rise versus US dollar
The EURUSD extended losses to 1.0865 in New York. The trend and momentum indicators remain comfortably bearish for a stern test of the 1.0855/1.0850 support, before the 1.0800 handle. The intra-day resistances are eyed 1.0967 (minor 23.6% retracement in Nov 9th to Nov 10th sell-off), 1.1030/1.1036 (major 38.2% retrace / 200-hour moving average), before 1.1082 (50% level & 50-day moving averages), max 1.1125 (100-day moving average).

The USJPY consolidates gains a touch below the 107.00 handle. The spectacular rise in US yields, combined to a rise in dovish Bank of Japan (BoJ) expectations should keep the US dollar in demand against the yen for a consolidation of gains in between 105.25 (200-day moving average) - 107.00, and could even encourage a further rise toward 107.50/107.90. The key support is eyed at a distant 104.75 (major 38.2% retracement on Nov 9th to Nov 10th rally).

The GBPUSD made a belated upside attempt, and reached the 50-day moving average for the first time in three weeks. The pair is gradually gaining a positive momentum to seize 1.2622 (Oct 7th pre-flash crash high). The key support stands at 1.2465 (minor 23.6% retrace on Oct 25th to Nov 10th rise), before 1.2392 (major 38.2% retrace), which should distinguish between a bullish consolidation and a short-term bearish reversal.

The AUDUSD hit 0.7560 in Sydney, on a renewed failure to clear 0.7725/0.7730 resistance. The rising US yields could dent the carry appetite and bring along further headwinds in the AUDUSD to the 0.7500/0.7490 area. Intra-day resistances are eyed at 0.7644 (major 38.2% retracement on Nov 8th to Nov 11th rise), before 0.7670 (50% level & 200-day moving average).

The stabilisation in the US dollar and consolidation in US yields hit the gold prices. The precious metal is now testing $1250 (major 38.2% retracement on Dec’15 to Jul 16th rise), if broken, should suggest a mid-term bearish reversal toward the $1210 mid-term target. Solid resistance is building pre-200-day moving average, $1283.

The WTI sees resistance pre-200-hour moving average ($45.60), on the combination of USD appreciation and low conviction regarding a potential OPEC deal at next week’s meeting. A consolidation to $44.45 (200-day moving average) is considered before a further sell-off to $43.15/43.00, mid-term support. The key resistances is eyed at $46.80 (major 38.2% retracement on Oct 19th to Nov 9th decline), if surpassed, could suggest a shot-term bullish reversal.