Markets on Wednesday: It’s Risk-On Mode
Rowan Crosby • 1 min read
If you hadn’t been paying attention, you could be forgiven for not even noticing the geopolitics of the last few weeks.
On Tuesday, equity markets rebounded strongly, after the Syrian saga got pushed into the background. All but forgotten it seems. Gold did push slightly higher, but it wasn’t being driven by fear, that’s for sure.
Across the board the majors were mixed. The EUR/USD and GBP/USD failed to break above key resistance levels.
The GBP/USD, in particular, has been very active over the last few sessions. We have seen it test a big resistance level at 1.4300-1.4350 and so far it hasn’t been able to break out.
Bitcoin has continued to weaken and is now trading below 8,000. Price has been on an upward trajectory and holding onto this level would be a big win.
The USD looks to have bounced off the lower support level at 89.50. I was seriously questioning the viability of this level and to some extent, I think we need to be cautious.
We’ve had some strong numbers out of the US recently and we still aren’t making any inroads towards regaining the highs.
Even yesterday we saw an uptick in Building Permits in the US which adds to stronger than expected retails sales numbers.
That said we did bounce exactly off 89.28 which is a level I had mentioned yesterday. I’m a bit nervous at the moment for the USD so Wednesday will be an important session. We are seeing quite a bit of back-and-forth action and that means we are due for another fall.
US Dollar Index (DXY) – 240 min Chart.