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MARKET BRIEFING – LONDON OPEN 18.03.2016
The US dollar declined on the overly dovish FOMC statement this Wednesday. The move lower resulted in a break of the ten-month uptrend channel and could be an important sign for the future direction of the world’s major reserve currency. The decline followed the last week’s plunge as a reaction to the European Central Bank’s policy and is a strongest decline of the currency within the last two years.
Despite concerns, analysts believe that it is still unlikely that the US dollar will simply collapse against its major counterparts. This is due to the relative strength of the US economy in comparison with conditions in the rest of the world.
In the wake of the cautious Fed stance gold has reclaimed the upside momentum with the metal currently trading above the 1260.00 mark. Gold has always been considered investor’s safe harbour, it is logical that we are now seeing the increased demand for the metal among such a vast uncertainty in the world’s markets.
Surprisingly, the oil has also joined the best market performers’ league, as it reached a new 2016 high this morning. Looking at the commodity’s 4-hour chart, it might be still too early to get excited about the long-term change of direction. Taking the WTI as an example, the commodity is still trading below the recently breached uptrend channel and needs to return to its limits so more bullish bets could be made.
EURUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.1430
Target 2: 1.1195
Projected range in ATR’s: 0.0118
Daily control level: 1.1050
GBPUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.4625
Target 2: 1.4325
Projected range in ATR’s: 0.0150
Daily control level: 1.4215
USDJPY
The intraday technical outlook
Trend 1 hour: Down
Target 1: 112.70
Target 2: 110.00
Projected range in ATR’s: 1.29
Daily control level: 113.85
USDCHF
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.9765
Target 2: 0.9570
Projected range in ATR’s: 0.0098
Daily control level: 0.9920
USDCAD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.3135
Target 2: 1.2830
Projected range in ATR’s: 0.0153
Daily control level: 1.3405
AUDUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.7740
Target 2: 0.7515
Projected range in ATR’s: 0.0102
Daily control level: 0.7420
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1281.00
Target 2: 1233.00
Projected range in ATR’s: 24.01
Daily control level: 1225.00
OIL
The intraday technical outlook
Trend 1 hour: Up
Target 1: 41.80
Target 2: 38.60
Projected range in ATR’s: 1.62
Daily control level: 38.65
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