Last week’s bearish engulfing candle for gold on the weekly chart appears to have had some follow through at the start of the new trading week, as the precious metal fell victim to a renewal of risk appetite as most global equity markets made fresh monthly highs, and the S&P and DOW soaring into new high ground.
GBPUSD pair initially rallied a bit, but at the end of the day could not break above the 1.30 level with any gusto.
The GBPUSD pair rose slightly during the course of the session on Tuesday, but did get back some of the gains.
The EURUSD pair rallied initially during the day on Tuesday, filling the gap from Monday.
The UK’s vote to leave the EU has created uncertainty regarding the global economy as the financial market is already being clobbered on suspicion of Brexit fallout, said Premier Li Keqiang on Monday.
The GBPUSD pair gapped lower at the open on Monday as anticipated, and as a result we continue to see selling pressure.
AUDUSD tested the .7650 minor psychological resistance before selling off sharply last week and a look at the daily time frame shows that this resistance is a long-term area of interest.
EURUSD seems to have bullish momentum on its side at the moment, as price is moving inside an ascending channel and bouncing off support. A test of the channel resistance at 1.1600 could be underway but there’s nearby resistance at the top of a longer-term range around 1.1450.
Published on Jun 21, 2016 S&P Capital IQ U.S. Equity Strategist Sam Stovall on the market impact of the Federal Reserve and Britain’s vote on whether to remain in the EU.
The GBPUSD pair initially fell during the course of the day and then turn right back around to break out to the upside. However, there is still more than enough resistance at the 1.48 level to keep this market somewhat soft, and this was initially a “knee-jerk reaction” to the latest polling data out of the UK when it comes to the EU referendum.
