EUR/USD seems to have gone into a consolidation phase around 1.1600 on Tuesday. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to challenge the recent low of 1.1522 and sees scope for a slump to 1.1366.
GBP/USD is on the defensive as it trades around 1.3650 after failing at the 1.3851 200-day moving average (DMA). Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the cable to fall towards the 1.3569 mark.
The USD/JPY rose sharply from September, briefly hitting a four-year high of 114.69. In the view of economists at MUFG Bank, the USD/JPY could well rise further to 115-116. However, they expect the steep rise in commodity prices to abate early next year, which is likely to support a steady yen recovery.
AUD/USD is easing back from the 200-day moving average (DMA) at 0.7556. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the aussie to challenge the 0.7437/27 support area.
During October the NZD/USD pair jumped from 0.6914 to 0.7149. Economists at MUFG Bank see downside risks initially given rate expectations could correct but RBNZ rate hike plans are set to continue encouraging demand for the kiwi next year.
USD/CAD remains firmer around the day’s top of 1.2385, up 0.11% intraday ahead of the European session. That said, the quote remains inside a four-day-old symmetrical triangle by the press time of Tuesday.
USD/CHF eroding the 2020-2021 uptrend at 0.9092. A close below here would open up the August and June lows at 0.9018 and 0.8926, respectively, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.
CME Group’s flash data for crude oil futures markets noted traders scaled back their open interest positions by just 906 contracts on Monday, reaching the eighth consecutive daily pullback. In the same direction, volume resumed the downside and dropped by nearly 77K contracts.
Open interest in gold futures markets rose by around 6.5K contracts on Monday and extended the erratic performance seen as of late according to preliminary readings from CME Group. In the other direction, volume shrank by around 105.6K contracts.
Any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material and it is not subject to any prohibition on dealing ahead of its dissemination. For the full Risk Disclaimer click here.