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.
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).