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GBP Firms Ahead Of BOE Verdict

Published 09/15/2016, 03:23 AM
Updated 04/25/2018, 04:10 AM
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The EUR/USD treaded water at about the 1.1248 (major 38.2% retracement on Aug 31st to Sep 8th rise) in Asia. The 1.1279-resistance (minor 23.6%) encountered offers in New York yesterday, more resistance is eyed at 1.1296 (ascending channel top). On the downside, the support is eyed at 1.1225 (200-hour moving average), 1.1200 (major 61.8% retracement) before 1.1171 (minor 76.4%) and 1.1123 (Aug 31st low).

The USD/JPY remains range bound. Intra-day resistances are eyed at 102.75 (50% retracement on Sep 2nd to Sep 7th pullback), 103.12 (major 61.8%), 103.57 (minor 76.4% and ascending channel top). Intra-day supports are presumed at 101.93 (minor 23.6%), 101.42 (Sep 13th low) and 102.20 (Sep 7th low).

The GBP/USD tanked to 1.3138 and bounced back over 1.3255 (major 38.2% retracement on Sep 6th – Sep 14th decline) into the Bank of England (BoE) meeting. The BoE meets today and is expected to maintain the status quo. Unless an unexpected dovish rhetoric, or action, the mid-term recovery should allow the GBP/USD to advance toward 1.3642 (major 38.2% retracement on post-Brexit sell-off). Intra-day supports are seen at 1.3200 (minor 23.6% retrace on Sep 6th –- Sep 14th decline), 1.3138 (Sep 14th double bottom) and 1.3056 (Aug 29th & Aug 31st double bottom).

AUD/USD is offered. The pair hit the top of our support range (0.7440/0.7420 July 20 & 26th support) for the second time. Clearing this critical support zone, we could expect a further sell-off to 0.7300/0.7280. Offers are eyed at 0.7511 (minor 23.6% retracement on Sep 8th to Sep 13th decline) and 0.7554 (major 38.2%).

Gold consolidates at about $1320. The Federal Reserve (Fed) expectations and the US dollar appetite continues influencing the value of gold on the run to FOMC decision due on September 22nd. The $1305 / 1297 zone (100-day moving average / minor 23.6% retracement on Dec’15 – Jul’16 rise) is seen as a solid mid-term support, while the upside is expected to remain capped at $1334 (50-day moving average) and $1350, two-week downtrend channel top.

The WTI broke below the $44.10 (minor 74.6% on Sep 1st to Sep 8th recovery) and hit $43.40. A minor support is seen at $43.00 before further sell.off. Any upside attempt is likely to see resistance at $44.80 (major 61.8%), $45.30 / 45.35 (200-hour moving average / major 50% retracement on Sep 1st to Sep 8th recovery).

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