March 4 2022
Safe haven flows continue to dominate trade. As long as Putin and his enablers wage their unlawful war on Ukraine. Gold will be supported by geopolitical risks.
This morning resistance is at 1946/1948 has been tested, and as yet unbroken. If broken you would see further advances to 1952, and possibly 1958n extension. However, the greater the escalation the bigger the uptick.
Good support is found at 1930 then 1924 and 1918, should there be some positive news.
USDJPY failed again to break above 115.70/80 resistance, and has since dropped back towards our 115.20/10 Pivot. A break below 115.10 would see further weakness to 114.80 and possibly support at 114.50.
As long as upside resistance at 115.70 remains intact, the pressure will be to the downside. However, If the US dollar can break above 115.70 level you will see further gains to 116.30.
The Pound lost its upside momentum yesterday, and fell back to support at 1.3320.
Unless cable can recover 1.3380, it is highly likely that we see another downside probe to test 1.3300 first, and then 1.3270.
Should we manage to get back above 1.3380, the short term outlook for the GBP will improve, and a test of resistance at 1.3430/40 is likely to follow.
I thought the unloved EURUSD was oversold yesterday, well it looks even more so today, as safe haven flows weigh heavily on the single currency.
Support is going to be found at 1.1010/1.1000 which has been tested in early Asian trade.
Resistance is found first at 1.1060/70 and then at 1.1100/10.
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