The Australian Dollar sold off overnight on risk off sentiment, driven by Brexit fears and OIL fall out. Brexit economic consequences resurface as Bank of England governor Carney reiterate sombre outlook and three UK property funds freezing redemptions. The British Pound continued trending lower to hit 31 year low. UK property funds suspending trading has drawn parallels to US subprime crisis in 2008. The size and reason of the UK property funds freeze are of no comparison to frozen US property and mutual funds in 2008 however there has been a flight to safety to bonds as yields in all developed countries continue to plunge post Brexit.
Crude OIL fell more than 4% on inventory stockpile and growing realisation of global economic slowdown which many have flagged post Brexit but the market been complacent about. Risk sentiment are in tug of war between Brexit ramification and political uncertainty versus the belief that central banks are ready to step in to provide further stimulus.
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Trade AUD/USD Intraday: towards 0.7420. |
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Pivot: 0.7485
Our preference: short positions below 0.7485 with targets @ 0.7420 & 0.7390 in extension.
Alternative scenario: above 0.7485 look for further upside with 0.7510 & 0.7525 as targets.
Comment: the RSI has broken down its 30 level.
Supports and resistances:
0.7525 *
0.7510 *
0.7485 ***
0.7437 Last
0.7420 **
0.7390 **
0.7370 **
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Trade Crude Oil (WTI) (Q6) Intraday: under pressure.
Pivot: 47.50
Our preference: short positions below 47.50 with targets @ 46.27 & 45.83 in extension.
Alternative scenario: above 47.50 look for further upside with 47.90 & 48.65 as targets.
Comment: the RSI has broken down its 30 level.
Supports and resistances:
48.65
47.90
47.50
46.74 Last
46.27
45.83
45.25
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Trade GBP/USD Intraday: the downside prevails.
Pivot: 1.3125
Our preference: short positions below 1.3125 with targets @ 1.2920 & 1.2850 in extension.
Alternative scenario: above 1.3125 look for further upside with 1.3190 & 1.3260 as targets.
Comment: the RSI has broken down its 30 level.
Supports and resistances:
1.3260 **
1.3190 *
1.3125 ***
1.2968 Last
1.2920 *
1.2850 *
1.2750 *
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