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MARKET BRIEFING – LONDON OPEN 03.03.2016
There is a view spreading among traders that the fall in oil prices, which started in the middle of 2014, might have bottomed out as production is slowing down and the demand remains strong.
This morning oil prices continued to show growth as investors are confident that the near future demand for raw materials will increase. The Brent oil reached US$ 37.47 high, and WTI surged to US$ 35.92 last afternoon according to the trading data.
Nevertheless, most analysts do not expect a sharp rise in the oil prices anytime soon, as the supply continues to exceed the demand, and the global stocks of the raw material are increasing with the unsold commodity.
According to estimates, around 1 to 2 million barrels above average demand are currently produced on the daily basis. In addition, some experts believe that the recent attempt of the non-OPEC oil producing countries to freeze the supply will not be able to curb the oversupply in the market.
Yesterday, the US Energy Information Administration announced a 10.4 million barrels increase held in inventory by commercial firms during last week. This is the highest level since April 2015.
The news though did not affect the highly dependent Canadian dollar, which continued to strengthen last afternoon. Australian Dollar has also surged higher and was trading at 0.7323 against the US Dollar this morning, being the pair’s this year high. The US Dollar Index stayed largely unaffected.
EURUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.0950
Target 2: 1.0780
Projected range in ATR’s: 0.0083
Daily control level: 1.0896
GBPUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.4230
Target 2: 1.3925
Projected range in ATR’s: 0.0152
Daily control level: 1.3895
USDJPY
The intraday technical outlook
Trend 1 hour: Up
Target 1: 114.70
Target 2: 113.50
Projected range in ATR’s: 1.27
Daily control level: 113.15
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.0045
Target 2: 0.9880
Projected range in ATR’s: 0.0082
Daily control level: 0.9945
USDCAD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.3545
Target 2: 1.3275
Projected range in ATR’s: 0.0135
Daily control level: 1.3500
AUDUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.7375
Target 2: 0.7205
Projected range in ATR’s: 0.0086
Daily control level: 0.7115
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1263.00
Target 2: 1215.00
Projected range in ATR’s: 23.79
Daily control level: 1224.45
OIL
The intraday technical outlook
Trend 1 hour: Up
Target 1: 36.55
Target 2: 32.80
Projected range in ATR’s: 1.87
Daily control level: 33.45
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