3rd April - Forex Technical & Market Watch
EURUSD Bounces Off Support on Firm Data and Softer Brexit Hopes
EURUSD BOUNCES OFF 1.12
The Euro and German yields had been underpinned this morning by a slew of better than expected services PMI figures from the Eurozone.
BREXIT MOVING IN A SOFTER DIRECTION
There is a political uncertainty over Brexit remains high, there is a growing sense that the approach is moving to a softer direction.
GBPUSD PRICE, NEWS AND BREXIT LATEST
Sterling continues to price out a no deal Brexit and further gains may be on the cards.
PM May turning Brexit as soft as possible.
Crude Oil Price Outlook Positive After Break Higher
The price of US crude oil is looking increasingly positive, while Brent crude seems to be heading up to the $70 per barrel mark.
The advances are particularly impressive given a report suggesting an unexpected increase in US inventories.
Gold is sitting on support but with the primary forces looking bearish further weakness is anticipated in the days ahead.
Gold is having a hard time getting going after another swift decline. It is sitting on support, but if it doesn’t get into gear soon risk will quickly ramp up towards seeing price fall down to the August trend-line in the low-1260s. Watching 1285 and 1277. Keep an eye on silver at 14.70, could fall sharply if undercut.
EUR/USD is trading closer to 1.1250, on hopes for an US-Chinese trade deal. Euro-zone Services PMI data beat expectations with 53.3 points, while US ADP survey disappointed with 129K.
R3 1.1258 R2 1.1238 R1 1.1223
S1 1.1188 S2 1.1168 S3 1.1153
GBP/USD is trading in the upper 1.3100s, off the highs but still up on the day. The UK Services PMI missed with 48.9 points. However, hopes for a cross-party Brexit solution keep the pound up.
R3 1.332 R2 1.3235 R1 1.3183
S1 1.3046 S2 1.2961 S3 1.2909
The precious metal looks to build on the overnight recovery move from 3-1/2 week lows and extend the momentum further beyond 100-hour SMA, which is followed by 23.6% Fibo. level of the $1325-$1285 recent slide.
R3 1302.42 R2 1297.61 R1 1295.06
S1 1287.71 S2 1282.9 S3 1280.35
4) CRUDE OIL
WTI extended its winning streak into a fourth straight day this Wednesday, having posted fresh five-month highs at 62.98 last hour. At the press time, the rates trade near 62.70 levels, modestly flat on the day.
Next is psychological resistance at $70.00 and just behind that is the Aug 2018 low (now resistance) at $70.30. If those break, watch the 61.8% retracement of the Q4 plunge at $72.68.
Disclosure :- The author does not hold any forex trading account while writing.
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