Euro-dollar opened with a slow tone in Asia

<p>EUR/USD Range: 1.3180-1.3223 Support: 1.3144 Resistance: 1.3250 Euro-dollar opened with a slow tone in Asia after yesterday’s rout in equity markets and comments from Eurogroup […]</p>

EURUSD
EUR/USD
Range: 1.3180-1.3223
Support: 1.3144
Resistance: 1.3250

Euro-dollar opened with a slow tone in Asia after yesterday’s rout in equity markets and comments from Eurogroup President Juncker and Belgium Finance Minister Didier Reynders over the Greek debt crisis. Euro-dollar opened at 1.3175 and headed lower on euro-yen selling to a nine-month low of 1.3163, before a weak rally to 1.3217. The rest of the session has seen the rate centred around 1.3200, with bids now seen in the 1.3160-1.3170 area ahead of reported stops from short-term players down through 1.3150. Later news that EU finance ministers had reached an agreement on collateral issues with Finland had a marginal impact, with the euro trading within a 1.3180-3216 range. Offers now start from 1.3230-1.3250, with support at 1.3144 and 1.3090.

GBPUSD
GBP/USD
Range: 1.5425-1.5464
Support: 1.5420
Resistance: 1.5480

Cable closed in New York at 1.5455 and opened in Asia at 1.5432, dragged lower by the euro-dollar which in turn was pushed down by early euro-yen sales out of Tokyo. Cable fell to session lows of 1.5421 before some consolidation appeared in the market with a steady move back up to 1.5463. The move proved to lack momentum, with the pair slipping back again just under the opening levels then stabilising around 1.5445-1.5450 for the remainder of the session. Support is likely towards 1.5420, followed by 1.5333, with resistance now up at 1.5480-1.5485.

 Gold
Range: 1,824.55 – 1,837.56
Support: : 1,618.75
Resistance 1,677.00

Gold had a solid start to the new week with the metal picking up from 1,618.75 in Asia yesterday morning in a steady trot higher to 1,664.65 before closing in New York at 1,658.50. Gold attraction resurfaced as equity markets tanked again and bargain dip buyers appeared in the metal, re-targetting safe haven assets. European debt issues and physical demand out of Asia as the Indian wedding season gets under way, are the main drivers, and are currently out-playing any negativity from falling crude prices. Asian markets this morning have continued to buy with the spot hitting an early high of 1,672.50 before paring back to 1,656. Support is seen at 1,618.75 and 1607 with resistance initially at 1,677 and 1,720.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.