Summary:
- Rate decisions either side of the Atlantic in focus for GBPUSD
- Is the tech rally fizzling out for the US100?
- Platinum looks for support near 10-year lows
GBPUSD
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Create account Try a demo Download mobile app Download mobile appIt could be a major week for this pair with both central banks announcing their latest policy decisions and Friday seeing the release of the July payrolls report from the US. While the Fed are widely expected to keep rates on hold, the BoE are expected to hike for just the second time in a decade on Thursday lunchtime and any further hawkish signals could provide further cause for a recovery in the pound. Key long term support can be found around 1.2960, and as long as this isn’t broken decisively then the pair can look to recover with the 23.6% and 38.2% fib retracements at 1.3294 and 1.3500 respectively possible levels to look to on the upside.
As long as the GBPUSD remains above 1.2960 then the market has a chance to recover with the 23.6% fib of the larger decline coming in at 1.3294. Source: xStation
US100
The stunning drop seen in Facebook shares following its latest earnings release weighed on the broader index last week and contributed to an inverted hammer being printed on W1. As long as the record peak of 7529 remains intact then further weakness could lie ahead as the strong rally seen in recent weakness years may be a little overstretched. Negative divergence on the RSI could be seen to suggest that the upwards momentum is on the wane and any further declines may lead to a retest of the prior support at 6985.
The US100 printed an inverted hammer on a weekly chart. Is the market now set for further declines? Source: xStation
Platinum
It’s been a bad year for commodities on the whole with a resurgent US dollar weighing heavily, but there are some signs that the selling is a little overdone. Platinum fell to its lowest level since 2008 just a couple of weeks back, but the long wicks below the W1 candles are indicative of buyers stepping in around the 790 level. With price down over 10% year-to-date there is a fair amount of scope for a recovery as long as the prior lows aren’t broken. 867 may be seen as the first swing level offering a possible target above the market and longs will want to see a sustained push through here before a larger rally can occur.
Platinum has fallen down to levels not seen since 2008 in recent weeks. Could price now look to recover? Source: xStation
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