MARKET BRIEFING – LONDON OPEN 10.03.2015
EURUSD
The intraday technical outlook
The Euro continues to grind down lower and at one point in early morning trading breached the 1.0800 level.
However over the past hour we have seen EURUSD experience a minor bounce off this area.
A continuation of the move higher could see EURUSD trade back up to the the upper level of its shorter down channel and the 1.0915 resistance level.
However with the price action being so negative a continuation of the current down trend is a strong possibility.
The shorting of rallies will therefore most probably be the more logical option rather than to try to take pips from the long side of the trade.
The next support level being the 1.0760 level being a prior weekly swing point.
A breach of this level could see EURUSD test the 1.0600 level being a monthly trend line.
From a technical perspective EURUSD is trading in an intraday 1 hour down trend with the line of control at the 1.0915 level.
GBPUSD
The intraday technical outlook
Overnight GBPUSD traded back up to its channel top.
However this level appeared to be a good area for the Bears to add more short positions.
A continuation of the move down could see a second attempt to test the 1.5000 level.
However over the past hour GBPUSD has been attempting to penetrate its upper channel boundary.
A breach of this level could see GBPUSD paint a higher low formation that creates a base for higher prices.
From a technical perspective GBPUSD is trading in an intraday 1 hour down trend with the line of control at the 1.5140 level.
USDJPY
The intraday technical outlook
USDJPY continues to accelerate higher.
However the price action this morning is taking a breather at the 121.80 resistance level being a prior weekly swing point.
With the price action being so extended there is a possibility that we see some down to sideways corrective movement.
Alternatively with the trend being so bullish an attempt to sustain a move above the 121.80 level should not be ruled out.
From a technical perspective USDJPY is trading in an intraday 1 hour up trend with the line of control at the 119.80 level.
USDCHF
The intraday technical outlook
USDCHF got its break above the 0.9840 resistance level and is now testing the 0.9900 level.
With the price action however experiencing such a strong up move there is a possibility that USDCHF may find it difficult to sustain a move above the 0.9920 prior resistance level.
USDCHF continues to trade in a broad up channel.
The price action has formed a typical staircase formation.
From a technical perspective USDCHF is trading in an intraday 1 hour up trend with the line of control at the 0.9840 level.
AUDUSD
The intraday technical outlook
The good China CPI numbers did nothing to bolster the AUDUSD as the price action continued to slump.
However we did get a bounce off the 0.7630 weekly level.
With the price action being so overly bearish there is a possibility that we get a corrective bounce back up to the channel top at the 0.7700 level.
However the Bears are obviously in control therefore the logic of shortening rallies would potentially be the more appropriate policy.
From a technical perspective the pair is trading in an intraday 1 hour down trend with the line of control at the 0.7740 level.
GOLD
The intraday technical outlook
Gold has continued to trade lower early in the European session.
However the price action is now testing a prior weekly support level at the 1157.00.
A penetration of this level could see Gold test the 1133.70 support level.
Alternatively with Gold being so overly bearish there is a possibility that we see a corrective pullback back up to the 1175.00 resistance level.
From a technical perspective Gold is trading in an intraday 1 hour down trend with the line of control at the 1175.00 level.
OIL
The intraday technical outlook
Oil has experienced some messy price action following the break down from its mini up channel.
This stems from the confusion being created by the daily chart which is showing some signs of bullishness following the price action breaking above its down channel.
From a technical perspective Oil is trading in an intraday 1 hour up trend with the line of control at the 49.00 level.
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