Market Outlook

GCG Market Outlook 25-09-2015

25 September Market Outlook



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.



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



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.



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