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MARKET BRIEFING – LONDON OPEN 14.03.2016
Stock exchanges in the Asia-Pacific Region on Monday showed a positive trend before this week’s meetings of the Bank of Japan and the Federal Reserve. This supported investors’ optimism caused by the results of the ECB meeting last week, when the bank took a more aggressive approach to support the troubled euro zone economy than initially expected.
This action led markets to hope for a speedy recovery of the euro area and also intensified an increase the demand for risky assets.
Investors’ attention this week is focused on the meetings of the Bank of Japan on Tuesday and the US Federal Reserve’s held on Wednesday. It is anticipated that the Bank of Japan and the Federal Reserve will leave interest rates at the current levels, which are -0.1% and 0.25-0.5% respectively.
For now, the US Dollar remains a centre of attention of market participants this week. Even though the probability of the interest rate hike is next to a zero, traders should not yet discard the possibility for a surprise.
In addition to the standard monetary policy announcement by FOMC, this quarterly event will also present updated economic forecasts and the press conference by the Fed Chairwoman, who is expected to bring more light in the future direction of the US monetary policy.
Last week the US dollar was significantly weakened by the ECB’s policy decision, with the dollar index declining below 96.00 mark. Looking its daily chart, the world’s major reserve currency continues to trade a downtrend scenario, hinting that the uptrend established in the middle of 2014 might be coming to an end.
EURUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.1256
Target 2: 1.1030
Projected range in ATR’s: 0.0113
Daily control level: 1.0820
GBPUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.4507
Target 2: 1.4241
Projected range in ATR’s: 0.0133
Daily control level: 1.4130
USDJPY
The intraday technical outlook
Trend 1 hour: Up
Target 1: 115.11
Target 2: 112.67
Projected range in ATR’s: 1.216
Daily control level: 112.55
USDCHF
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.9926
Target 2: 0.9734
Projected range in ATR’s: 0.0096
Daily control level: 1.0090
USDCAD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.3367
Target 2: 1.3083
Projected range in ATR’s: 0.0142
Daily control level: 1.3225
AUDUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.7642
Target 2: 0.7452
Projected range in ATR’s: 0.0095
Daily control level: 0.7400
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1274.70
Target 2: 1225.40
Projected range in ATR’s: 24.65
Daily control level: 1237.00
OIL
The intraday technical outlook
Trend 1 hour: Up
Target 1: 41.33
Target 2: 38.07
Projected range in ATR’s: 1.629
Daily control level: 37.00
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