MARKET BRIEFING – LONDON OPEN 31.08.2015
The European equities have opened lower this morning following their Asian counterparts, as worries over Chinese government support abandonment invoked the selling mood in investors.
The UK markets will remain closed due to the British bank holiday today.
Following the Chinese government decision to call off the further support to the country stock markets, the Shanghai Composite Index declined nearly 3 percent on Monday, following last week revival.
German DAX 30 opened 0.8 percent lower at 10,202.00 this morning, continuing the daily downward trend the Index of the largest EU economy has formed in the middle of this July. The EU Stoxx 50 had a similar fate, opening at 3,261.50, decreasing approximately 0.70 percent.
The German Retail Sales numbers came out on the positive note today, increasing to 1.4 percent from -1.0 percent last month. This helped the common European currency rebound higher against the US Dollar, following four consecutive days of the decline last week.
The US dollar index itself was trading lower, bouncing off the 96.20 resistance level. The index is fluctuating within 93.00- 98.00 borders since the beginning of last April, with the signs of lost upward momentum.
Gold remained trading at the Friday’s close level, after it broke the upward trend support line at the end of the previous week. It seems the precious metal is expecting some additional data from the global markets in order to decide on the move further.
Looking at the forthcoming releases, at 10.00 am London time the EuroStat will publish the Eurozone’s August Consumer Price Index inflation estimates. The numbers are projected to stay without change, with the CPI Flash Estimate index being at 0.2 percent and the Core CPI Flash Estimate at 1.0 percent.
EURUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.1325
Target 2: 1.1011
Projected range in ATR’s: 0.0157
Daily control level: 0.1020
GBPUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.5528
Target 2: 1.5298
Projected range in ATR’s: 0.0115
Daily control level: 1.5815
USDJPY
The intraday technical outlook
Trend 1 hour: Down
Target 1: 123.04
Target 2: 120.24
Projected range in ATR’s: 1.4031
Daily control level: 124.60
USDCHF
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.97401
Target 2: 0.9500
Projected range in ATR’s: 0.0120
Daily control level: 0.9780
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.3335
Target 2: 1.3081
Projected range in ATR’s: 0.0127
Daily control level: 0.0137
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7246
Target 2: 0.7054
Projected range in ATR’s: 0.0096
Daily control level: 0.7360
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1150.70
Target 2: 1115.30
Projected range in ATR’s: 17.70
Daily control level: 1112.00
OIL
The intraday technical outlook
Trend 1 hour: Range
Target 1: 51.87
Target 2: 48.11
Projected range in ATR’s: 1.8800
Daily control level: 51.10
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