Weak intraday biasYesterday, the Euro declined against the US Dollar for the second consecutive session, as investors remained cautious over snags of coalition talks in Germany and its impact on the economy. As of now, the pair is trading below its short-term and long-term EMAs on the 1H chart, hinting the presence of negativity in the coming session. Important support is aligned at the 1.1755 level, followed by the 1.1720 and 1.1690 levels. A breach below the latter might trigger increased selling pressure on the pair. However, the MACD indicator is directing towards the north, indicating a likely recovery in the pair over intraday basis. The immediate technical obstacle is observed at the 1.1830 level, followed by the 1.1865 and psychological 1.1900 levels. A break and stability above the latter might lead to upside momentum in the pair.
Bearish if breaches below 22115The Dow Jones index posted modest losses in the last session, driven by decline in telecommunication sector stocks. Moreover, remarks from the US Federal Reserve (Fed) Chair, Janet Yellen, that the central bank has overrated employment and inflation, weighed on the index. As of now, the index is trading with a negative bias on the 1H chart, reflecting at the bearish momentum in the coming session. Also, the MACD indicator is tranquil at a lower level below its centreline, further validating the above stance. Key technical support is located at the 22235 level, followed by the 22165 and 22115 where EMA 200 is placed. A breach below the latter might lead to increased selling pressure on the index. On the contrary, key resistance is seen at the 22355 level, followed by the 22400 and 22450 levels.
Weak if breaches below 1.3340The Pound extended its losses against the US Dollar in the prior session, shrugging off data that indicated a surge in the British mortgage approvals to a six-month high level in August. As of now, the pair is trading in a downward trending channel on the 1H chart, indicating at a bearish technical outlook. In addition, a signal line crossover from above by the MACD indicator, further elaborates the above stance. Important near-term support is situated at the 1.3400 level, followed by the 1.3375 and 1.3340 levels. A breach below the latter might generate further weakness in the pair. On the bright side, crucial resistance is placed at the 1.3460 level where EMA 200 is located, followed by the 1.3490 and 1.3525 levels. A sustained break above the latter might reverse the trend to bullish.
Negative if breaches below 7170The FTSE 100 index traded in the red in the previous session, with the shares of Johnson Matthey, Burberry Group and Coca-Cola HBC among the top index losers. Moreover, shares of WPP tumbled following a rating downgrade by Morgan Stanley on assumptions that it might miss its full-year guidance. At present, the index is trading within a short range of 7270-7315 on the 1H chart, reflecting at a neutral technical scenario. However, the MACD indicator is showing loss of upward potential, suggesting at possible bearishness over intraday basis. Key support is situated at the 7250 level, followed by the 7210 and 7170 levels. A move back below the latter might generate further negative momentum in the index. On the other hand, key intraday resistance is positioned at the 7310 level, followed by the 7345 and 7370 levels.
Intraday stance – BearishThe precious metal traded with a bearish tone in the last session, after the US Fed Chair, Janet Yellen acknowledged that the central bank should consider gradual interest rate hikes. As of now, the yellow metal is trading below the short-term and long-term EMAs on the 1H chart, hinting at a negative technical picture. Immediate support is positioned at the $1290 level, followed by the $1287 and $1284 levels. A move back below the latter might lead to a further acceleration to the downside. However, the MACD indicator is likely to witness a signal line crossover from below, hinting at possible recovery over intraday basis. Important resistance is situated at the $1299 level where EMA 55 is trading, followed by the $1303 and $1306 levels. A break and stability above the latter might trigger bullishness in Gold.
Positive if breaks above $59.00The Brent Crude traded in the red in the last session, brushing off data released by the American Petroleum Institute (API) that showed an unexpected drop in the US crude oil inventories in the prior week. At present, the commodity is trading above the short-term and long-term EMAs on the 1H chart, reflecting the presence of positivity in the coming session. Also, a signal line crossover from below by the MACD indicator, further validates the above stance. The cruical $59.00 level is acting as a key short-term resistance, a break and stability above which might trigger strength in the Brent crude, clearing its way for the $59.65 and psychological $60.00 levels as the next possible upside targets. On the flipside, intraday support is located at the $58.15 level, followed by the $57.70 and $57.20 levels.
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