Thursday, 20 April 2017
Trading signals - FOREX consolidates ahead of the first round of France elections
The situation remains the same - geopolitical risks determine the demand for safe-haven assets. The pair is oversold and our view didn’t change much, we are waiting for a technical pullback from the level of 108.00-108.50.
- The start of the corporate reporting season in the US was not as positive as it was expected. Equity markets in the US remain rather under pressure.
- Current weakness of the US currency after US President's political statements is a short-term positive Japanese yen factor.
The level 108.70-108.50 now acts as the nearest support (the 200th moving average will support the the price). Despite attempts to push the market lower, we observe large-scale longs around 108.50 and below.
The European currency gained amid USD weakness.
- Political risks continue to shape the agenda in Europe. The first round of elections in France that will take place this weekend is in the focus of investors.
The pair found support in the area of level 1.0708. The first resistance is in the region of 1.0770, the main resistance is above level 1.0830-1.0835.
An unexpected drop below $54.60 led to the activation of stop orders and the market decline to the area of $52.50. The oil decline occurred due to US equity markets sale-off in view of global risk aversion after disappointing corporate reporting data.
- Official data on oil reserves showed a decrease of 1 million barrels, distillate stocks - by 1.9 million barrels, gasoline stocks increased by 1.5 million barrels.
- Weakness of the American currency is a positive factor for the oil market.
- The meeting of OPEC representatives this weekend and possible verbal intervention will support the oil market.
In the current conditions, the oil market will try to keep the level of 53 dollars per barrel and recover to the level of $54 dollars per barrel.
Fort Financial Services
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