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MARKET BRIEFING – LONDON OPEN 21.03.2016
The Gold market demonstrated a downward momentum as investors engaged in profit-taking. The metal has been appreciating in value since the middle of December 2015, but this month it showed signs of stagnation, hinting that a move further up might come to a halt. This morning the metal was trading at US$ 1240.49, versus US$ 1270.76 high of last week.
By looking at the technical indicators, we can see that the Gold price has breached the 4 hours uptrend channel last Monday. Also, it failed an attempt to return to the channel limits by the end of the week, which could be another sign that the metal might retrace.
The edging down in the precious metal’s price also coincided with a recovery in the US dollar value by the close of the Friday’s trading session, as both products historically have a negative correlation.
The recent events have shown that the US and European Central Banks are inclined towards the keeping the monetary easing measures for longer as the corresponding economies still have a hard time to recover. Nevertheless, some analysts believe, there are considerably fewer policy tools left to implement. Hence, this could support the new downturn bias in gold.
Oil prices also retraced as well since last Friday. The commodity reached a new high of this year and WTI surpassing a US$ 42.50 mark. The next critical level and support of US$ 40.00 are also a downside target, which the oil could retest before deciding on the move further.
EURUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.1385
Target 2: 1.1150
Projected range in ATR’s: 0.0119
Daily control level: 1.1250
GBPUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.4610
Target 2: 1.4310
Projected range in ATR’s: 0.0151
Daily control level: 1.4400
USDJPY
The intraday technical outlook
Trend 1 hour: Down
Target 1: 112.70
Target 2: 110.35
Projected range in ATR’s: 1.18
Daily control level: 113.85
USDCHF
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.9790
Target 2: 0.9600
Projected range in ATR’s: 0.0098
Daily control level: 0.9920
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.3175
Target 2: 1.2870
Projected range in ATR’s: 0.0152
Daily control level: 1.2915
AUDUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.7695
Target 2: 0.7490
Projected range in ATR’s: 0.0102
Daily control level: 0.7420
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1278.00
Target 2: 1230.00
Projected range in ATR’s: 24.2
Daily control level: 1225.00
OIL
The intraday technical outlook
Trend 1 hour: Down
Target 1: 40.70
Target 2: 37.40
Projected range in ATR’s: 1.66
Daily control level: 41.25
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