Risk of fresh weakness rises after 100SMA capped recovery attempts

Slobodan Drvenica Windsor Brokers

Recovery rally from new three-week low at 1.2832 that commenced in early European trading on Tuesday, showed signs of stall in early hours of American session, as broken 100SMA (1.2890) managed to cap corrective action.

In my morning forecast I pointed at 100SMA as ideal cap for positioning ahead of fresh weakness, after strong bearish signal was generated on Monday’s close below significant 1.29 support zone.

Repeated close below would re-confirm bearish stance for extension of bear-leg from 1.3217 (25 Jan high).

Bears would look for test of solid supports at 1.2807 (55SMA / 50% of 1.2397/1.3217) and 1.2786 (daily cloud top).

Momentum continues to trend lower in the negative territory, while stochastic turns south after brief recovery attempt from oversold territory, adding to negative signals.

BoE’s governor Carney, in his speech today said that global economic growth is likely to stabilize, but at slower pace and pointed to negative consequences of no-deal Brexit, which could be likely scenario of divorce between the UK and EU, if solution won’t be found in coming weeks until the 29 Mar deadline.

Res: 1.2890; 1.2915; 1.2942; 1.2996
Sup: 1.2832; 1.2807; 1.2786; 1.2710

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD weakens to four-week lows near 1.1750

EUR/USD’s selling pressure is gathering pace now, approaching the area of multi-week troughs in the mid-1.1700s on Thursday. The pair’s intense decline comes on the back of another day of solid gains in the US Dollar, particulalry exacerbated following firm prints from the weekly US labour market.

GBP/USD drops further, hovers around 1.3460

In line with the rest of its risk-linked peers, GBP/USD faces increasing selling pressure and recedes toward the 1.3460 region, or four-week lows, on Thursday. Cable’s persistent pullback comes in response to the continuation of the recovery in the Greenback amid a solid US data and a divided FOMC when it comes to the Fed’s rate path.

Gold clings to daily gains near $5,000

Gold struggles for direction and clings to its daily gains around the key $5,000 mark per troy ounce on Thursday. The precious metal sticks to the bid bias amid reignited geopolitical tensions in the Middle East and despite marked gains in the US Dollar and rising US Treasury yields across the curve.

Ripple slips toward $1.40 despite SG-FORGE tapping protocol for EUR CoinVertible

XRP extends its decline, nearing $1.40 support, as risk appetite fades in the broader market. SG-FORGE’s EUR CoinVertible launches on the XRP Ledger, leveraging the blockchain’s scalability, speed, security, and decentralization.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.