"Fort Financial Services"- fundamental and technical analysis.
The euro extended its sell-off and hit the low at 1.1820 yesterday. The major faced buying rejection at the level and bounced back afterwards. The single currency may extend its recovery and visit the level 1.1850 today.
The downward pressure increased on Tuesday. The pound extended its losses when the major dropped below 1.3500. Sellers drove the major to 1.3450 after that where they lost momentum and buyers started a recovery phase. The major bounced to 1.3500 and may extend its gains and probe the 1.3530 area later the day.
The positive bias prevailed on Tuesday. Buyers managed to lead the USD/JPY pair from the 109.65 to the 110.40. The buying momentum eased over there. AS a result, the spot bounced off the border of the overbought zone and softened to the 110.00 handle. The overall sentiment is still bullish. We will wait the correction is over and will start buying the US dollar again.
The yellow metal got under pressure and dropped from 1315 to the 1290 area. Buyers are trying to build a correction since then and managed to push the spot to the 1295 area by now. The yellow metal may extend its recovery and reach 1300 today.
Brent oil prices remained in the upward channel. Buyers almost reached 79.50 when they lost control on Tuesday. As a result, the benchmark fell to the lower end of the ascending channel. Sellers led the price to the 77.50 where Brent found fresh bids and pulled back to the 78.50 hurdle. We are waiting for the Brent oil prices to revisit the 79.50 resistance in the coming sessions.
*Analytical review is presented by the leading analyst of the broker Fort Financial Services, Alexander Kofman