The euro and financial markets at large are looking to the outcome of French and Spanish bond auctions to gauge the degree of debt crisis contagion into core euro

<p>  GBP/USD Range: 1.5692 – 1.5765 Support: 1.5692 Resistance 1.5784   Cable closed in New York at 1.5731, basically at session lows 1.5730. The rate […]</p>

 

GBPUSD
GBP/USD
Range: 1.5692 – 1.5765
Support: 1.5692
Resistance 1.5784

 

Cable closed in New York at 1.5731, basically at session lows 1.5730. The rate extended the late New York risk off pullback, seen after markets reacted to a Fitch comment that eurozone contagion could affect the outlook for US banks. Cable extended lows to 1.5692, before picking up demand interest as risk gained favour on equity market correction. US index futures and Asian bourses moved into positive territory, which saw the rate push to a session high of 1.5766. The rate settled between 1.5740-1.5760 ahead of the European open. Support now at 1.5692 and 1.5663 followed by 1.5617. Resistance held at 1.5784, 1.5813 and 1.5859.
EURUSD
EUR/USD
Range: 1.3423 – 1.3517
Support: 1.3420
Resistance: 1.3560
Euro-dollar closed in New York at 1.3465, off pullback lows of 1.3452, after the rate was pressed down from highs of 1.3552. This risk off tone carried over into Asia, with the barrier at 1.3425 targeted and triggered but profit-taking demand quickly emerged to contain follow-through selling at 1.3421. A move lower came as early Sydney, with targeted stops below 1.0040 as both rates recovered in tandem as risk appetite moved back into favour and US equity futures edged back into positive territory. Euro-dollar continued to recover through the balance of the overnight session, marking highs at 1.3514, with early Europe extending this move to 1.3517. Offers seen placed between 1.3520-1.3525, a break to open a move back towards 1.3553-1.3557. Stops seen placed above 1.3560. Support at 1.3420, 1.3410-1.3405 ahead of the next barrier at 1.3400.
Gold
Range: 1,757.99 – 1,766.97
Support: 1,753.50
Resistance: 1,745.75
Gold prices fell back yesterday on the back of a firmer dollar index but the losses were somewhat tempered by a sharp jump in US crude prices and further unease in the eurozone over sovereign debt and European bank funding issues. The ECB is under pressure after being heavily drained of funds this week, putting pressure on equity markets. Gold opened yesterday at 1,780.85 and after an early high of 1,783.70, fell back sharply to 1,762.50 before a bounce to 1,780. New York then sold the metal again to lows of 1,753.50, closing out the day at 1,763.40. Asia saw a dip to 1,757.65 before picking up to 1,767. Support today is at 1,753.50 and 1,745.75, with resistance at 1,783.70 and 1,796.30.

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.