Market Outlook

GCG Market Outlook 25-09-2015

25 September Market Outlook

 

EUR/USD

Euro was the best performer amongst the major currencies against the greenback. The move was driven by a number of reasons including the US 10-year treasury yields falling to a one month low intraday, weakening of the Dollar Index, comment from Draghi and the market sentiment of risk-aversion. We saw EUR/USD attempting to break the psychological level of 1.13 but fell quickly after Yellen rather hawkish speech that supported the USD.

Until we see a clear breakout above the 1.1330 we remain bearish with the immediate resistance remaining at the 1.13 mark. To the downside, it is highly likely to test the current trend line as shown in the chart with immediate support being found at 1.1160.

 

GBP/USD

After falling for 4 straight trading days, Sterling finally found some support after the pair failed to break below 1.52 but the upward movement was limited compared to how much euro rallied against the greenbacks due to their soft economic data. We may see the pair testing the 1.5330 region but as of now, we maintain a bearish stance. At the time of writing, GBP/USD is looking to test the 1.52 level for the third time in 2 days and should it break below the 1.5175-1.5200 level, we may see the pair rapidly depreciating to 1.50

 

AUD/USD

After a rally that saw the pair recovering to 0.7040, AUD/USD quickly lost its momentum early in the morning as Yellen gave a rather hawkish speech that supported the USD. To the upside, resistance can be found around 0.7060 but the risk remains heavily to the downside. Support can be found around 0.6960-0.6980.

 

 

Disclaimer
The information contained in this newsletter is prepared by Goldland Capital Group Pty Ltd ABN 76 162 331 311, AFSL 436416 (Goldland Capital). The information contained herein is not intent to constitute an offer or solicitation of an offer to buy or sell any financial instrument. Goldland Capital shall not be responsible for any loss arising from any investment based on any forecast or other information contained herein. The contents of this communication should not be construed as an express or implied promise, guarantee or implication by Goldland Capital that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Past performance is not a reliable indicator of future performance. Trades in accordance with the information in an analysis, especially, but not limited to, leveraged investments such as foreign exchange trading and investment in derivatives, can be very speculative and may result in losses as well as profits, in particular if the conditions mentioned in the analysis do not occur as anticipated. Prior to making any investment or entering into any transaction, you should carefully consider your financial situation and consult your financial advisor(s) in order to understand the risks involved and ensure the suitability for you of any investment or transaction. Any information or opinions in this material are not intended for distribution to, or use by, any person in any jurisdiction or country where such distribution or use would be unlawful. All expressions of opinion are subject to change without notice.