MARKET BRIEFING – LONDON OPEN 28.08.2015
Asian shares prolonged their upturn as the Chinese and US markets were recovering for the second consecutive day.
Chinese benchmark Shanghai Composite index surged 5.3 percent higher by the yesterday’s close, after crushing by 23 percent over the last five sessions. The revival came after it was announced that the People’s Bank of China purchased additional stock becoming a buyer of last resort, due to the absence of the real demand.
Moreover, it gave an order to the state-owned banks to purchase more of the national currency. These actions followed the reduction of the interest rate earlier this week for the fifth time in nine months.
Among the measures, which raised the market sentiment was the announcement that Chinese pension funds will invest as much as 313 billion US dollars in the country’s stock market. Analysts expect some more government intervention today, therefore propping up the weakened stock market further.
Positive news from China have affected well the global markets, diminishing the fears that the slowing Chinese economy would weight on the rest of the world which up to now wiped out more than 2 trillion US Dollars in market capitalization.
Wednesday comments by William Dudley, the Federal Reserve Bank of New York President, which hinted that the rate hike will be postponed from the earlier expected month of September, added more of a reassurance to investors.
The US preliminary GDP numbers beat the economists the expectations coming to 3.7 percent yesterday, have increased the desirability of the major world’s reserve currency, helping the dollar index gaining value for the third successive day in a row, which was trading above 96.00 level during the previous trading session.
Have all the above actions supported the real market upraise and will serve as a genuine revival or just as a mere dead cat bounce, should become clear within a short period of time.
EURUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.1398
Target 2: 1.1090
Projected range in ATR’s: 0.0141
Daily control level: 0.0980
GBPUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.5515
Target 2: 1.5291
Projected range in ATR’s: 0.0112
Daily control level: 1.5615
USDJPY
The intraday technical outlook
Trend 1 hour: Down
Target 1: 122.37
Target 2: 119.66
Projected range in ATR’s: 1.3588
Daily control level: 116.80
USDCHF
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.9783
Target 2: 0.9537
Projected range in ATR’s: 0.0123
Daily control level: 0.9780
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.3326
Target 2: 1.3068
Projected range in ATR’s: 0.0129
Daily control level: 0.0137
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7265
Target 2: 0.7063
Projected range in ATR’s: 0.0101
Daily control level: 0.7360
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1142.98
Target 2: 1107.80
Projected range in ATR’s: 17.59
Daily control level: 1112.00
OIL
The intraday technical outlook
Trend 1 hour: Down
Target 1: 49.61
Target 2: 45.99
Projected range in ATR’s: 1.8129
Daily control level: 49.30
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