GBPUSD is showing signs of a pullback, as price previously found support near the 1.5000 major psychological level. Using the Fibonacci retracement tool on the latest swing high and low on the 4-hour time frame indicates that the 61.8% Fibonacci level lines up with a former support zone.
Difficult to believe that until recently the US dollar (UUP, quote) was being written off by all and sundry, with some even suggesting that its days as the currency of first reserve were numbered. Many were calling for the Yuan to replace it, and even the euro in its current iteration. Others suggested a basket of currencies. How times have changed.
It’s been a period of pause and reflection for equity markets, following the picture perfect price action of August, as the up elevator finally reached the next level, rolling gently over into the current phase of price congestion.
GBPUSD continued its downward movement from 1.6643, and the fall extended to as low as 1.6286.
As US markets returned to work yesterday after the long Labor day weekend, and an even longer summer, trading for gold started with a bang.
Oil prices continued to move firmly lower once again in yesterday’s oil trading session with the WTI futures contract for August closing at $102.29 per barrel, and ending with a wide spread down candle as the commodity lost over a dollar per barrel on the day.
It’s been a tough couple of weeks for eurodollar traders, with the pair trading in a congested range, testing the 1.3780 floor to the downside and the 1.3870 ceiling to the upside on the daily chart.
China (FXI, quote) had net capital inflows throughout the first quarter, although the surplus narrowed each month during the period, according to the State Administration of Foreign Exchange.
Gold (GLD, quote) continues to remain weak with yesterday’s close of 1284.50. In early trading the spot price of gold is basically flat.
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