Market focus today is on US non-farm payroll data, which will likely decide the next direction of risk

<p>EUR/USD Range: 1.3115 – 1.3155 Support: 1.3115 Resistance: 1.3187 Euro-dollar closed in New York at 1.3145, having settled mid-range after recovering off this session’s lows […]</p>

EUR/USD

Range: 1.3115 – 1.3155
Support: 1.3115
Resistance: 1.3187
Euro-dollar closed in New York at 1.3145, having settled mid-range after recovering off this session’s lows of 1.3085 and pushing up to 1.3187. The rate eased lower into Asia, seen as a ‘normal’ Friday risk off Asian move, but given an added knock on release of weaker than forecast China services PMI. The rate recovered through the balance of the session, able to extend to 1.3152 before early Europe. A buy on dips seems to be the preferred course in pre US-employment report trade. Resistance seen into the 1.3187-1.3197 area of recent highs, offers remaining in place from 1.3200 through to 1.3220, a break to expose recent range highs at 1.3233-1.3235 ahead of 1.3250. Support seen into 1.3115-1.3100, ahead of 1.3085-1.3080 and then 1.3027.

GBP/USD
Range: 1.5786 – 1.5841
Support: 1.5785
Resistance: 1.5842
Cable closed in New York at 1.5807, having recovered off pullback lows of 1.5795. The rate slipped lower into early Asian trade, with reported stops sub 1.5790 seen as an early attraction. The rate dipped to an extended low of 1.5786 before picking up fresh demand. The rate recovered through the balance of the session, stepping its way to an eventual high of 1.5825, with early Europe extending this move to 1.5832. Markets seen fairly subdued, experiencing usual pre-US employment report thin trading conditions. Resistance seen at the New York high of 1.5842, with sell interest suggested extending to 1.5859-1.5861. A break above this later area to open a move back to 1.5884, with stronger offers noted into 1.5890 and more towards 1.5900. Support at 1.5785-1.5775 ahead of 1.5750.

 

 

 
Gold
Range: 1,755.41 – 1,759.94
Support: 1,741.00
Resistance: 1,767.00
Gold continued to march higher yesterday despite some falls in oil prices and a marginally weaker euro-dollar. The metal posted fresh yearly highs of 1,761.20 after earlier lows of 1,741 and closed out the day at 1,759.50. Whilst appetite for the metal remains strong, particular in Asia, the market is nearing overbought levels and is becoming increasingly wary of a reversal lower. The move higher was pushed into overdrive by Fed Chairman Ben Bernanke following last week’s FOMC meeting where he pledged low interest rates in the US until 2014 and hinted at further QE. Asian markets this morning have seen the metal hover around the 1,755-60 range ahead of Europe. Support is now seen towards 1,741 and 1,732.75, with resistance at 1,767 and 1,779.50.

 

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.