Euro lost ground in Asia as Standard & Poor’s announcement of a downgrade of Italy to “outlook negative”

<p>EUR/USD Range: 1.3594 – 1.3647 Support: 1.3585 Resistance: 1.3690 Euro-dollar closed in NY at 1.3688 after easing back from its recovery highs of 1.3721, having […]</p>

Range: 1.3594 – 1.3647
Support: 1.3585
Resistance: 1.3690
Euro-dollar closed in NY at 1.3688 after easing back from its recovery highs of 1.3721, having seen lows during the session of 1.3586. Rate came under fresh pressure into the early Asian dealing as market reacted downgrade of Italy, the rate dropping from 1.3688 to 1.3605. Bids were encountered ahead of 1.3600, allowing rate to recover to 1.3645, aided in part by the positive reaction to the RBA Minutes. Although the rate failed to push above 1.3650 which took the rate back through to 1.3600 to extend lows to 1.3593. Rate recovered, meeting resistance around the 1.3620 level. Support now seen at 1.3585 which resistance touching at 1.3690.
Range: 1.5659 – 1.5685
Support: 1.5655
Resistance: 1.5685
Cable closed in NY at 1.5700, the rate having recovered off NY lows of 1.5632 before easing back from recovery highs of 1.5724. Rate came under pressure into early Asia as it tracked euro-dollar’s reaction to the S&P downgrading of Italy, the rate dropping to a low of 1.5655 before meeting demand interest which provided some buoyancy. After settling into a tighter 1.5655/85 range through the balance of the overnight session, opening into Europe around 1.5670. Bids now in place at 1.5655, a break to open a deeper move toward 1.5632. Stops now seen placed below 1.5630, a deeper move toward 1.5600 ahead of stronger support level of 1.5585/80. Resistance 1.5680/85 ahead of 1.5700.
Range: 1,772.17 – 1,785.65
Resistance: 1.786.00
Gold continues to whip around at the mercy of the dollar Index and crude prices, with $50 moves now seemingly the norm in nervous markets. The metal opened around 1,812.50 yesterday with an early rally in Asia to 1,828.00 but the move was short lived with Europe sending Gold prices back to opening levels, and NY selling the metal hard as the dollar bounced broadly in the afternoon and crude prices fell sharply. Gold hit lows of around1,770.45 just after London closed before a weak rally to 1778.80 into the close. Asian markets saw a brief rally to 1,786.00, before further pressure resumed and the metal fell to 1,770.00. Support is at 1,762.80 and 1723.50 with resistance now seen at 1,786.00 and 1,827.00.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (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.