March 1 2022
Financial markets remain highly sensitive to geopolitical risk. As Russian President Putin steps up his efforts to overthrow Ukraines democratically elected Government.
Yesterdays early morning plunge inspired by Putin’s nuclear war threat, pushed the EURUSD back into oversold territory. However, that may be the new normal until peace is finally restored to eastern Europe.
Resistance remains at 1.1220/30, if broken you will see an attempt on 1.1270
Support this morning is at 1.1170 if broken expected a test of 1.1130
As you would expect Gold is driven by headlines, whether they be about an escalation of the war, or the hope of peace talks. Geopolitical risk is the big driver.
Resistance is at 1918/20 and if, or when broken the next target area is 1928/30
Support is found at 1900/1898 and again 1890/1888
USDJPY finished the NY session below 115.00, having broken some support.
This morning the USD has tried to recover the 115.20 pivot, it remains to be seen if it can be successful. If it fails then expect more losses sub 115 towards support ay 114.60/50, and possibly 114.10/00 in extension.
However, if the Dollar can continue to recover another attempt at the strong resistance at 115.70/80 will most likely follow.
Upside progress for cable remains limited to 1.3430/40 resistance. However, if the Pound can clear here I think you will see a run up to 1.3470/80.
Failure to clear 1.3440 would see selling some pressure increase to try support at 1.3370/60, which if broken GBPUSD will try to test the last low at 1.3330/20
To trade forex, metals, crypto and much more go to http://www.8dcglobal.com