Spreads
Spreads
Spreads
Spreads
Spreads
EURUSD has continued to gain for the second straight trading session. The U.S. initial jobless claims figure came in at 213K, compared to 218K previously. Retail sales figures for the U.S. came in at 0.3%, compared to -0.4% previously. Both key economic data releases attracted fresh bidding for the U.S. Greenback, however, the Dollar seems to have stalled out at its current level. Market participants will now look toward next week’s key FOMC interest rate decision, which is scheduled for Wednesday’s American trading session. According to CME’s FedWatch tool, the possibility of a full percentage interest rate hike by the Fed has risen to around 25%. A super-sized interest rate hike by the Fed could bring unprecedented volatility for EURUSD.
On the technical side, EURUSD has retraced from our previously estimated short-term resistance level of 1.0011 and heading toward our previously estimated support level of 0.9969. Range-bound trading for the pair is expected to continue until the FOMC interest rate decision. RSI for the pair sits at 45.8, as of writing. On the four-hour chart, EURUSD currently trades below its 50, 100, and 200-day SMA.
Resistance: 0.9902, 1.0011, 1.0055
Support: 0.9902, 0.985
GBPUSD could not hold on to gains from Wednesday’s trading and reversed course over the 15th. The stronger Dollar was aided by a better-than-expected jobless claims report and a healthy retail sales figure. Next week sees the BoE and the Fed announcing interest rate decisions for their respective countries. While the FOMC is set on a larger interest rate hike, the BoE is hampered by a weak economy of Britain and a nation that is under extreme price pressure from energy and utilities. In a survey conducted by the BoE, the central bank showed a 4.9% climb in inflation for the year ahead. Trading volume for Cable could be relatively thin ahead of the two key interest rate decisions, and Cable trading should stay rather range-bound before the key decisions arrive.
On the technical side, GBPUSD has continued to trend closer to our previously estimated support level of 1.1463; however, if the Fed decides to implement a full percentage point interest rate hike next week, Cable could break below this key support level. RSI for the pair sits at 38.4, as of writing. On the four-hour chart, GBPUSD currently trades below its 50, 100, and 200-day SMA.
Resistance: 1.1561, 1.1854
Support: 1.1463
Gold plummeted over the course of Thursday’s trading. The drop for Gold accelerated as the American trading session began. The non-yielding metal dropped as low as $1,660 per ounce at the lowest point. The sharp drop affirms our bearish view on the non-yielding asset. Ahead of key interest rate decisions from the Fed and the BoE, market participants have rotated out of the yellow metal. The better-than-expected initial jobless claims report and retail sales figures from the U.S. only added further selling pressure for the yellow metal. Downbeat equity market performance, however, allowed Gold to limit some of the downsides. The rise in U.S. short-term treasury yields continues to point to a bearish trajectory for the non-yielding metal.
On the technical side, XAUUSD has completely broken below our previously estimated support level of $1,695 per ounce and is heading toward the lower level of support at $1,650 per ounce. RSI for the yellow metal sits at 22.935, as of writing. On the four-hour chart, XAUUSD currently trades below its 50, 100, and 200-day SMA.
Resistance: 1740, 1800
Support: 1712, 1695
