Financial market research and analysis

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USD strengthens, Cable drops
EURUSD is consolidating gains at 1.1160. The pair could further slide to 1.1134 (200-day moving average), before gathering further strength for a potential rebound. If the EURUSD breaks the 1.1134 support, we could see a further sell-off to 1.1070 (50% Fibonacci retracement on December to May rise). A climb above 1.1200/1.1210 (100-day moving average) could encourage a rise to 1.1358 (76.4% Fibonacci retracement

The yen is softening against the US dollar. USDJPY trades above the 101.00 mark. Breaking below the 100.67 support (August 2nd low) could bring the 100.00 level back on the radar. Below, a further sell-off to 98.99 (July 24th low) could be considered. On the upside, a recovery above the 102.65 (August 8th high) could gather further momentum towards 104.25 (76.4% Fibonacci retracement on January to June decline).

GBPUSD sold-off aggressively in the early trading in London. Breaking the 1.2900 handle could gather a further bearish momentum towards 1.2849 (July 11th low). A recovery above 1.30 could hint at a slow rise to 1.3093 (August 9th high).

After a four-day winning streak, Aussie softens against the US dollar. The trend is comfortably bullish and the downside is expected to remain limited. On the back of a softer US dollar, we could expect a further advance towards 0.7833 (April 21st high). First support is seen at 0.7700/0.7691 (intraday low), if cleared could pave the way to 0.7600/0.7593 (76.4% Fibonacci retracement on January to April rise).

Gold traded south to 1344 on Thursday due to the renewed US dollar strength. The fist support is seen at 1329/1321 (50-day moving average), below, the precious metal could test 1300 support to clear a way toward 1286 (100-day moving average). A recovery above 1357 (August 10th high) could encourage a rise to 1374 (July 11th high), before $1400 mark.

Saudi Arabia’s oil production hit a record high, while the oil inventories in the US rose another 1.1 billion barrels over the last week according to the most recent EIA data. The expanding global glut continues weighing on the oil prices.

WTI trades at 41.37 and the next support is seen at 41.20 (76.4% Fibonacci retracement on July to August drop). Below this level the price could test the $40 mark and then to $39.23 (August 3rd bottom). First resistance is seen at 42.00/42.20 (100-hour moving average), and above that level the price could encourage a further recovery to the critical 43.43 (50% Fibonacci retracement).