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Steady day in the Forex market today. Australian Dollar strengthening against all major currencies, trading at the highest level since 21st December against Swiss Franc.
In the United Kingdom, Labour Leader Jeremy Corbyn demanded a general election to ”break deadlock” over Brexit today. “If you are so confident in your deal, call that election, and let the people decide.”, he said. Pound Sterling weakening against the US Dollar today as the Brexit process heats up ahead of the vote in Parliament next week.
All eyes will be on the US Dollar later as the Chair of the Federal Reserve speaks at the Economic Club of Washington at 5 PM London time.
AUDCHF – Daily
FX Majors Summary
Oil trading slightly lower in today’s session. US Crude and Brent down by 0.16% and 0.15% respectively.
Gold and Silver trading lower today after a positive day yesterday. Silver trading 0.62% lower whilst Gold was down by 0.24%.
USOUSD – Daily
Day of losses for the major US and European Indices today. FTSE100 and DAX30 down by 0.33% and 0.15%. In the US, Dow Industrial Average and S&P500 trading lower by 0.32% and 0.15% respectively. ASX200 making gains on the day.
Global Indices Summary
Tough day for the digital currencies today with all of the major cryptos trading lower. Ethereum and Litecoin experiencing the biggest losses, down by 12.04% and 10.98% respectively.
Wrapped in the current volatility circling Sterling and the Brexit talks looming over the major currency we have seen some spectacular moves out of the EURGBP pair.
Looking at the hourly chart here we can see volatility with which it is moving. The particular aspect of this chart we are interested in here is the resistance level at 0.90630 (the orange dashed line) and the support level at 0.8950 (blue dashed line) we can see numerous attempts to push past the resistance level, a couple of fake breakouts, before seeing the pair sold back down to the support level.
A move higher in GBP could quite easily see this pair trading back down towards the 0.8950 support level.
By Klāvs Valters
This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.
Sources: Go Markets MT4, Google, Datawrapper, Tradingview