Asian indices finished mixed today as traders stop for breath after the recent rally. The Nikkei225 finished 0.72 percent lower to 20,972. The Hang Seng benchmark in Hong Kong finished 0.43 percent lower at 28,423. The Shanghai Composite finished 0.06 percent higher to 2,890, while in Singapore, the FTSE Straits Times index finished 0.03 percent higher to 3,316.
Australian equities finished lower today following several days of gains which took the Index to within sight of all-time highs. Reports that President Trump had approved attacks on Iranian targets added to geopolitical concerns. The ASX200 closed lower by 36 points or 0.55% at 6650.
European session started higher today as low-interest rates support stock bids across the globe. DAX30 is adding 0.27 percent to 12,388 CAC40 is 0.45 percent higher at 5,560 while the FTSE MIB in Milan is trading 0.39 percent higher at 21,445. The London Stock Exchange is 0,30 percent higher to 7,446 amid Brexit uncertainty.
In commodities markets, crude oil consolidates above $57 amid geopolitical tensions around the globe. Brent oil one dollar to $64,55 per barrel as major oil producers have yet to agree on adjustments on output. Gold is the deal of the day as it hit five years high at 1,411 a level that we haven’t seen since 2013, as bulls are in full control. The precious metal holds above all the major daily moving averages, and strong resistance will be met at 1,411, today’s high.
In cryptocurrencies market, bitcoin (BTCUSD) makes new yearly high at 9,800. The daily low for BTC was at 9,126, and the daily high at 9,354. Immediate support for BTC stands now at the $9,500 round figure while next support stands at 9,000, the previous resistance. On the upside, strong resistance now stands at 9,800, today’s high while I expect extra pressure from sellers at 10,000 and then at 10,500. Ethereum (ETHUSD) trades higher at 284, with capitalization now to 30.3 billion. On the upside, the immediate resistance stands at 287, the recent high, while the support stands at the 250 round figure. Litecoin (LTCUSD) also trades higher to 136. The crypto market cap now stands above $295.0 billion.
On the Lookout:
Yesterday the Bank of England left the interest rates unchanged. The Eurozone flash manufacturing PMI came at 47.8 in June while the German Markit PMI Composite registered at 52.6 above expectations.
In macro news from America, we await the figures on existing home sales and the flash purchasing manager indexes.
Trading Perspective: In forex markets, USD trades lower at 96.11 after the Fed policy dovish update, while the Aussie dollar continues higher for the second day at 0.6915, Kiwi on the other hand trades lower at 0.6569.
GBPUSD consolidates today below 1.27 as it takes a break from the rebound started at 1.25, getting a hand from dovish FED. Major support now stands at 1.2641 (200h MA) which if broken might accelerate the slide further towards 1.26 round figure. On the upside, immediate resistance now stands at 1.2827, the 50-day moving average while more offers will emerge at 1.2931, the 200-day moving average.
In Sterling futures markets, the open interest shrunk by 205 contracts, volume dropped by nearly 400 contracts.
EURUSD trades 0.11 percent higher at 1.1305 amid broad USD weakness. The pair yesterday broke above the 100-day moving average, and that attracted extra bids that pushed the pair up to 1.13 round figure resistance. A convincing close above 1.13 can lead prices to 1.1353, the 200-day moving average. Support now stands at 1.1250 round figure, while more bids will emerge at 1.12.
In euro futures markets, the open interest increased by 4.399 contracts while volume increased by around 54.800 contracts.
USDJPY managed to rebound in European session having hit the daily and YTD low at 107.04 as traders dumping USD across the board for one more day. The pair hit the low at 107.04 and the high at 107.52. The pair will find support around 107.04 daily low and then at 106.70. On the upside, immediate resistance for the pair now stands at 108 round figure.
In Yen futures markets, the open interest increased by 8.500 contracts, and the volume went up by 64.900 contracts.
USDCAD continues south for one more day to 1.3187 as the sharp rebound in crude oil prices, Canada’s main export item seems to have added further strength in the Canadian Dollar (CAD). The pair will find immediate support at 1.3150 while extra support stands at 1.3100 round figure. The pair has reached oversold levels so a rebound can’t be ruled out. On the upside, immediate resistance now stands at the 1.32 zone before an attempt to 1.3450 recent high from 31st May.