"Fort Financial Services"- fundamental and technical analysis.
Sellers managed to reclaim 1.1800 and moved the price towards 1.1750. The level did not stop sellers who reached 1.1700 afterwards. However, fresh bids around the level rejected the spot upwards. The pair returned to 1.1750 and spent there the first part of the day. The euro continued its slide targeting at 1.1700 in the late European session. The resistance resides at 1.1750, the support comes in at 1.1700.
A move below 1.1750 will confirm sellers' strength. Below 1.1750 EUR/USD will likely target at 1.1700 and 1.1650.
The pound remained under pressure due to the bid sentiment around the dollar. Sellers pushed the price to the lower limit of the current range during the Asian trades. The pound left the range in the morning. Sellers were able to regain 1.2900 in the mid-European session. The major advanced to 1.2850 in the NY session. The resistance lies at 1.2900, the support comes in at 1.2800.
The pound is likely to reach 1.2850 soon and will advance to 1.2800 after that.
The US dollar stalled its recovery on Tuesday. After breaking 110.00 the spot advanced up to 110.50 where the major lost momentum. The resistance lies at 111.00, the support comes in at 110.00.
The USD/JPY pair is approaching the upper boundary of the downward structure. A move beyond the downward channel will neutralize the downward pressure. The next target for this pair is 111.00.
The bid tone around the US dollar pushed gold to the 1270 handle. The metal failed to retake the level and pulled back. The resistance exists at 1280, the support stands at 1270 dollars per ounce.
If a downward pressure persists the pair may reclaim 1270 dollars per ounce.
The short term picture favors the downside. Brent stopped losing ground when the benchmark touched 50.50. After touching the level oil prices started a consolidation phase which lasted the night and the morning. A bout of fresh selling pressure emerged in the late European session. Brent oil prices attacked 50.50 again and reclaimed the handle this time. The resistance lies at 50.50, the support lies in at 49.50 dollars per barrel.
Technical readings favor another leg lower. We believe Brent may reach 49.50 in the short-term.
Bulls tried to extend their gains on Tuesday. They attacked 12200 and even advanced to 12240. However, the index lost momentum after that. The price moved back and returned below 12200. The resistance lies at 12200, the support exists at 12100.
If buyers fail to retake 12200 the index may turn around and soften to 12000.
S&P500 continued its rally and was able to retake 2460. The index was growing upwards after that and posted fresh highs at 2466. Buyers did not find any reason to move the price higher and retreated. The resistance lies at 2480, the support exists in at 2460.
We expect a pull back or consolidation now. The benchmark may ease to the 2460 region.
*Analytical review is presented by the leading analyst of the broker Fort Financial Services, Alexander Kofman