EURUSD Slumps Below 1.10, Gold Higher and Oil Stabilizes after Drone Attack

Nikolas Papas

Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).

EURUSD Slumps Below 1.10, Gold Higher

September 23, 2019

Asian indices finished lower today on renewed worries on US-China trade war, the oil price stabilizes after the drone attack in Saudi Arabia oil facilities which cut 5% of the world oil supply.

The Hang Seng trading 0.81 per cent lower at 26,222, the Shanghai Composite trading 0.98 per cent lower to 2,977, while in Singapore, the FTSE Straits Times index finished 0.37 per cent lower at 3,147. The ASX 200 in Australia finished 0.30% higher at 6,749.

European indices started lower today. DAX30 is 1.53 per cent lower to 12,267, CAC40 is 1.17 per cent lower at 5,623 while the FTSE MIB in Milan is 1.30 per cent lower at 21,836. In London, FTSE 100 is trading 0.79% lower at 7,287. UK is scheduled to leave the EU on October 31.

In commodities markets, crude oil trades 0.43 per cent higher at $58.34 after the drone attack on Saudi Arabia oil facilities. Brent oil is trading 0.41% higher at $63,46 per barrel as oil world supply will be affected by the drone attacks. Gold trades higher at 1,520 keeping the bullish momentum as the price holds above all the major daily moving averages. On the upside, strong resistance will be met at 1,555.13 recent high while support is at 1,479, the 50-day moving average.      

In cryptocurrencies, Bitcoin (BTCUSD) trading lower today at 9,926, hitting the daily low at 9,811 and the daily high at 10,069. Bitcoin short term momentum is neutral now as it trapped between the 100 and 50-day moving average. Immediate support for BTC stands now at $9,258 the low from August 29, while next support stands at 9,000. On the upside, strong resistance now stands at 12,315 the high from August 6th, and then at the 13,500 round figure. Ethereum (ETHUSD) trades higher at 209,53 with capitalisation now to 22.7 billion, and on the upside, the immediate resistance stands at 317 high while the support stands at 136 the low from May 6th, Litecoin (LTCUSD) trades flat at 73.39. The crypto market cap capitalization now stands above $263.51 billion.

On the Lookout: Germany Markit Manufacturing PMI came in at 41.4 below expectations of 44 in September. France Markit PMI Composite which came in at 51.3 below expectations of 52.7 in September, the Manufacturing PMI came in at 50.3 also below expectations of 51.2 in September while the Services PMI came in at 51.6 below forecasts of 53.2 in September.

The central bank of China set the Yuan rate (USDCNY) at 7.0730 versus yesterday fix at 7.0732.

drone attacks
XAUUSD Daily Chart

Trading Perspective: In forex markets, USD index trades 0.33 per cent higher at 98.78, the Aussie dollar trades 0.09 per cent higher at 0.6768, while Kiwi trades 0.20% higher at 0.6270.

GBPUSD trades 0.22% lower at 1.2441 as we are getting closer to Brexit deadline. Major support now stands at 1.2078 recent low which if broken might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.2480 the 100-day moving average while more offers will emerge at 1.2733 the 200-day moving average.

In Pound futures markets open interest decreased by 8 contracts, volume increased by around 12.700 futures contracts.

EURUSD trades 0.40% lower at 1.0973, after worse than expected PMI data. Immediate resistance for the pair stands at 1.1108 the 50-day moving average and then at 1.1172 the 100-day moving average. On the downside, immediate support stands at 1.0965 today’s low and then at 1.0925 YTD low.

In euro futures markets open interest increased by 1.100 contracts, the volume also increased by around 605 futures contracts.

drone attack
EURUSD Daily Chart

USDJPY is trading 0.13% lower at 107.40 having hit the daily low at 107.30 and the daily high at 107.76. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 107.90 the 100-day moving average and then at 109.29 the 200-day moving average. 

In Yen futures markets open interest decreased by 1,600 contracts, volume decreased by around 35,000 futures contracts.

USDCAD is trading 0.28 higher at 1.3299 the pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, immediate resistance now stands at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.  

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