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.
Yen tanks post-BoJ, Fed in focus
The EURUSD has fully given back a month worth of gains and is ready to test the 1.1120 on the downside. A break below the 1.1100/1.1085 should encourage a further sell-off toward the 1.1000 mark. The short-term bias will remain negative below 1.1200 (major 38.2% retracement on Sep 8th to Sep 21st decline). Surpassing 1.1200, the bullish trend reversal could encourage buyers for a recovery to 1.1300/1.1327 (Sep 8th resistance).

The USDJPY rallied after the Bank of Japan (BoJ) tweaked the monetary policy to allow flexibility in the monetary base in order to have a QQE (Quantitative Easing) with yield curve control. The markets bought into the BoJ's decision. The pair is expected to expand gains above 101.90 (major 32.8% retrace on Sep 14th to Sep 21st decline). Clearing 103.35/103.50 should encourage a further recovery toward 104.50/105.00 mid-term resistances. Support is eyed at 101.55/101.00.

The GBPUSD extended losses below the 1.30 handle. The negative trend strengthens heading into the Federal Reserve (Fed) decision with the possibility of a further sell-off toward 1.2950 and 1.2865 (mid-Aug lows). The upside risks prevail due to a potentially dovish surprise from the Fed later in the day. If this is the case, we could see a short squeeze in the pound. The critical resistance is eyed at 1.3138 (major 38.2% retracement on Sep 6th to Sep 21st decline).

AUDUSD treads water close to 0.7554 (major 38.2% retracement on Sep 8th to Sep 13th decline). The USD-leg is expected to define the short-term trend. Intraday resistances are eyed at 0.7587 (Fibonacci 50% level) before 0.7622 (major 61.8% retrace). Minor support should come in play at 0.7522/0.7520 (200 and 100-day moving averages), 0.7511 / 0.7500 (minor 23.6% retrace / ascending baseline). The critical support is seen at 0.7440/0.7420.

Gold is marginally cheaper on the back of a broad based USD strengthening. The short-term appetite in gold is contingent on the US dollar. 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 pares losses despite a stronger US dollar across the board. Solid short-term support is eyed at $45.80, $46.40 and $47.50. On the downside, support should come into play at $44.10 (50, 100-hour moving averages) before a potential bearish reversal toward $43.00, $42.25 and $41.30.