Financial market research and analysis

The volatility of EURUSD has shrunk in the last few sessions, while the pair keeps holding the 1.1000 support mark. The first resistance is at 1.1060 (Fibonacci retracement), and if this is surpassed the pair could attempt a new rise to 1.1090/1.1100 (200-day moving average). Above this level the pair could push towards the 1.1198/1.1200 mark (Fibonacci retracement). If the pair falls below the 1.1000 mark we could see a slide to 1.0940 (major Fibonacci retracement), and below this level the pair could slump to 1.0780 (Fibonacci retracement).

Asian stock markets continue to rise for a third session in a row (Nikkei +0.84%, Hang Seng +0.62%). The Yen has fallen to levels seen pre-Brexit vote, and the USDJPY is now testing the 104.28 (Fibonacci retracement). The next resistance is seen at 105.00 and then 106.00 (also 50-day moving average). If the pair clears the 104.28 support level we can expect a new slide towards 102.44 (July 12th low).

Political uncertainties lifted from Cable, has allowed it to rise the most in 3 days since the UK referendum to leave the EU. GBPUSD is moving above 1.3250 with the next resistance level at 1.3411 (Fibonacci retracement), then if this is surpassed the pair could recover up to 1.3500/1.3530 (June 28th high). A break below the 1.3200 support mark could cause a new sell-off, with the next support level at 1.3000.

Australian dollar lost some territory on Tuesday, and the AUDUSD moved below the 0.7600 resistance mark. While the bullish short term trend is still in place, a fall below the 0.7535 support could be a first signal of inversion, with the next target at 0.7477 (100-day moving average) then 0.7445 (Fibonacci retracement). A rise above the 0.7656 (July 12th high) could extend towards the 0.7700 mark and even higher to 0.78/0.7831 (April 20th high).

Gold trades 0.45% higher at 1340$/oz, while the European stock markets are retracing after recent gains. The fading political uncertainties in the UK could lead to lower volatility in gold prices, while traders are also focused on central banks action (expected in the next few weeks).

The American Petroleum Institute (API) said that, regarding the week to July 8th, crude inventories rose by 2.2M barrels, which is lower than the 3M expected. WTI moves above the 46.00$ a barrel waiting for today’s 15.30 data from the Energy Information Administration (EIA): inventories expected -2.3M.