Market Commentary: High Volatility Resulting From U.S. Market Close
Anton Kolhanov | Feb 22, 2017 02:07AM ET
Today we have high market volatility, because yesterday U.S. market was closed and became thin, and when the Asian session started, the power of the market became strong, we got big trend impulse that broke stop levels of some local players, which increased volatility.
But we can’t say that we can expect this trend continuation, because the dollar and oil are now trading on resistance level, as gold is closer to its support.
EUR/USD
Trading on main support 1.0520/30, from that we can expect the start of an uptrend to the main resistance level 1.0700. At the same time in the current EU session we had few good economic indicators, that is going for euro rising. First resistance we have as 1.0575 and then 1.0610. In other words, if the market will further break down 1.0500/0520, the downtrend will continue to the next support on the level 1.0450.
GBP/USD
Market still trading sideways in range 1.2390 – 1.2490.
EUR/GBP
Trading on support level 0.8460 – 0.8480, from that we can expect the start of an uptrend to resistance level 0.8515 and then 0.8560. In other words, if the market breaks down level 0.8445, we can expect the continuation of a downtrend to support 0.8385.
Gold
The market is trading on support level 1230, that is looking weak, where next support (main) we have on 1224, where the market is going now. Resistances: 1233.50, 1238.
U.S. Oil
Today started April’s new contract, that created strong impulse and now crude trading on the resistance level 54.70, But the same time this morning, in the UK session, we had speech of Mohammed Sanusi Barkindo , OPEC Secretary General, that confirmed that OPEC is decreasing production in the right way, as was agreed. But the current price is strong resistance, as you can see from the chart below and we have not heard anything new for the market, so I am expecting that oil will continue its trading in sideways trend between resistance 54.70/80 and support 54.30 – 52.50. And now from 54.70 we can expect a downtrend to the support level.
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