Daily Forex Market Preview, 12/10/2018
The headline moves continue to be the dramatic declines seen across the equity markets with the S&P500 hitting its lowest level since June yesterday before some buying kicked in to take price back up.
The sell-off continues to support gold which soared to multi-month highs yesterday due to safe haven demand. A light data calendar today should keep moves fairly muted ahead of the weekend as traders attempt to let the dust settle on a volatile week.
EUR managed to find yet further highs against the US Dollar overnight, trading up to the 1.61 level before reversing. Price is now breaking challenging the supporting trend line of the rising channel from the weekly lows. If we see a sustained downside break here, the focus will be on a run down to deeper structural support at the 1.1547 region.
GBPUSD intraday analysis
GBP too found fresh highs this morning but has since retraced slightly. For now, GBP is retesting the highs of Tuesday and Wednesday where it is finding some support. The local rising trend line is also sitting just below, and while above here, the focus remains on further upside. If we see a break of the trend line, the 1.3182 level support will be the next key level to watch.
The moves in gold yesterday saw price surging higher, trading up past the initial October highs, September highs, and August highs also. For now, any retest of the broken 1214.23 August high should see some support ahead of any deeper test of the 1208.27 level.