Brexit jitters remained on top of market movers this Monday

EUR/USD

Brexit jitters remained on top of market movers this Monday, with high yielders under strong selling pressure and the American dollar standing as the major winner, despite US data was far from encouraging.   The EU released its monetary figures for May, showing that  the annual growth rate of the broad monetary aggregate M3 increased to 4.9%, from 4.6% in April. In the US, the Goods Trade Deficit widened to $60.6 billion, worse than market's expectations of  -$59.5 billion. Also, the June Flash Markit Services PMI showed that growth in the sector remained subdued in June, printing 51.3, unchanged from May's final result. The Markit Flash Composite PMI Output Index registered 51.2 in June, up only fractionally from 50.9 in May.

The EUR/USD pair fell down to 1.0970 before settling a handful of pips above the 1.1000 level by the end of the day, and stands now around the 23.6% retracement of the Friday's slide, and has been unable to advance beyond the 50% of it on an initial attempt to recovery, exposed therefore to extend its slide down to a major long term support in the 1.0800/40 region. In the 4 hours chart, the 20 SMA has extended its decline down to the mentioned 50% retracement, whilst the technical indicators have bounced modestly from oversold levels, but remain within negative territory, with no actual upward momentum that may suggest a steeper recovery for the upcoming days.

Support levels: 1.1000 1.0960 1.0920 

Resistance levels: 1.1045 1.1080 1.1120

USD/JPY

The USD/JPY fell down to 101.39, trading modestly lower daily basis, in spite of the sharp slide in European and American equities. The Japanese yen pared gains on rumors  doing the rounds that  the Japanese government might be considering to announce an additional stimulus package of ¥10 trillion, but there were no official comments on the matter. Still, is pretty much what the market is expecting these days, so the most it can do is contained yen's appreciation. Now holding a few pips below the 102.00 level, markets are eyeing the 100 threshold, and the Bank of Japan will probably react if the price get's below it. Technically, the pair is now stuck around the 38.2% retracement of its Friday's slide, with indicators in the 1 hour chart heading modestly higher around their mid-lines, but the price far below its moving averages. In the 4 hours chart, however, technical indicators have barely bounced from oversold levels, whilst the 100 SMA has extended its decline well above the current price, all of which maintains the risk towards the downside. 

Support levels: 101.40 101.00 100.75

Resistance levels: 102.30 102.80 103.30

GBP/USD

The British Pound saw no relief this Monday, plummeting against the greenback  to a fresh 30-year low of 1.3119 early US session, paring losses temporarily, but maintaining the dominant bearish tone as the following recoveries were quickly rejected on advances beyond the 1.3200 level. The political, social and economic jitters extended over the weekend, with nearly half of the shadow cabinet having  resigned and 10-year government bond yields sinking below 1% for the first time ever. Also, Moody's and S&P downgraded UK's economic rating, with the first putting the kingdom on "negative" watch and the second cutting from AAA to AA with a negative outlook.  The bearish potential is strong, despite the extreme readings present in intraday charts, as negative sentiment towards the GBP remains intact, and will likely extend due to the ongoing local turmoil. Technical indicators in the 4 hours chart hover within extreme oversold levels with no aims of turning higher, as the price holds near the mentioned daily low, and far below its moving averages. The pair has now scope to extend its decline down to 1.3000 during the upcoming days, with a break below this last probably fueling the decline on panic selling. 

Support levels: 1.3120 1.3080 1.3035

Resistance levels: 1.3225 1.3260 1.3300

AUD/USD

Commodity related currencies suffered alongside with European ones, plummeting alongside with stocks and oil prices during the American afternoon due to the continued risk aversion. The AUD/USD pair opened the week with a downward gap, having been unable to recover above the 0.7450 level, the 38.2% retracement of this year's rally. The pair reached fresh lows by the end of US session, as S&P downgrade of UK's credit rating has fueled the decline of riskier assets. Now trading around the 50% of the same rally, the pair presents a strong downward momentum according to the 4 hours chart, as technical indicators head strongly lower near oversold territory, whilst the price has broken below the 200 EMA currently around 0.7400, now a strong resistance in the case of an upward corrective move. Friday's low was set at 0.7303, now the immediate support and the level to beat to see the pair approaching the 0.7200 mark this Tuesday.

Support levels: 0.7300 0.7250 0.7210

Resistance levels: 0.7365 0.7410 0.7450 

Dow Jones

Risk aversion accelerated in the American afternoon, with the DJIA down 260 points or 1.50%, to end the day at 17140.24, the Nasdaq shed 113 points, and closed at 4,954.44, whilst the S&P fell 36 points, and closed the day at 2,000.54.  Investors remained wary this Monday, with financial shares suffering the most, particularly in Europe and the US.  The Dow traded as low as 17,055, whilst the S&P fell briefly below the 2,000 level, both risking some steeper declines on a break below the psychological figures. The daily chart for the DJIA shows that the indicators maintain their bearish slopes well below their mid-lines, whilst the index has broken below its 200 DMA for the first time since early March. In the 4 hours chart, the technical indicators have lost their bearish strength, but are currently consolidating within extreme oversold readings, whilst the index is far below its moving averages, maintaining the risk towards the downside. 

Support levels: 17,055 16,980 16,922

Resistance levels: 17,162 17,241 17,310

FTSE 100

The FTSE 100 ended the day 2.55% lower at 5,982.20, with banking shares plummeting by the most. In fact, Barclays and Royal Bank of Scotland shares were suspended from trading after tanking over 10% each during the firsts hours of trading, triggering automatic circuit breakers that usually kick in when a share loses more than 8%. Barclays ended the day down 17.35%, while RBS closed 15.35% lower, after trading resumed. The index has recovered some ground in after hours trading, and stands around 6,000 as a new day starts. Nevertheless, the daily chart shows that it held below its 20 SMA, whilst the technical indicators head south below their mid-lines, supporting a continued decline for the upcoming sessions. In the 4 hours chart, the technical indicators have lost their bearish momentum near oversold readings, but are far from suggesting a recovery, whilst the moving averages remain well above the current level, in line with the longer term outlook. 

Support levels: 5,952 5,897 5,840

Resistance levels: 6,050 6,090 6,125 

DAX

European equities fell to their lowest in 4 months, with the German DAX ending the day at 9,268.66, down 3.02%. All across the region, the banking sector led the decline, with Deutsche bank closing the day 6.17% lower and Commerzbank shedding 5.24%. And whilst the DAX consists in just 30 of the major German companies, by the end of the day the falling stocks outnumbered advancing ones on the Frankfurt Stock Exchange by 776 to 152 while  19 ended unchanged. Holding a few points above the mentioned close, the daily chart for the index maintains the bearish tone seen on previous updates, with technical indicators heading sharply lower near oversold readings, and the benchmark developing well below its moving averages. In the 4 hours chart, the technical indicators are beginning to give signs of downward exhaustion near oversold readings, but given that the bounce is still quite shallow and that the benchmark is trading far below its moving averages, the downward risk remains elevated for this Tuesday. 

Support levels: 9,431 9,372 9,302

Resistance levels: 9,550 9,604 9,668

Nikkei

The Nikkei 225 advanced this Monday, up by 2.39% or 365 points, to close the day at 15,309.21 recovering part of the sharp losses posted last Friday. Nevertheless, the benchmark shed same 200 points in after hours trading, as Wall Street suffered a three digit slump. Additionally, the Chinese Central Bank weakened the Yuan for the most in 10 months, aiming to contain Brexit woes over the local economy, another sign that sentiment continues being strongly negative across the region.  Now trading around 15,150, the daily chart for the Nikkei shows that the index is at the lower end of Friday's range, with the technical indicators extending their declines towards oversold levels at fresh monthly lows, compatible with a new leg lower for this Tuesday. In the 4 hours chart,   the technical indicators have turned flat within oversold levels, whilst the 20 SMA has turned sharply lower, but remains far above the current level. The immediate support comes at 15,038, followed by Friday's low of 14,933.

Support levels: 15,038 14,933 14,850

Resistance levels: 15,235 15,343 15,465

Gold

Spot gold saw a modest advance early Monday, having spent most of the day consolidating its latest gains. The commodity closed the US session around $1,325.00 a troy ounce, prompted by  risk aversion and UK´s turmoil after the unexpected victory of the "leave" campaign. However, things were quieter today, at least for the safe-haven metal, which added roughly 0.8% after gaining almost 5% last Friday. From a technical point view, the daily chart shows that the technical indicators have turned lower from near overbought levels,  but remain well above their mid-lines, whilst the 20 SMA maintains a strong upward tone well below the current level, all of which indicates that the downside remains  limited.  In the 4 hours chart, the technical picture is quite alike, as indicators consolidate within overbought levels, with no signs of turning lower, whilst the price holds far above its moving averages. The daily high was set at 1.335.56, the level to overcome to confirm a new leg higher for this Tuesday.

Support levels: 1,318.20 1,306.80 1,296.30 

Resistance levels: 1,335,60 1,342.60 1,356.10

WTI Crude Oil

Crude oil prices sunk this Monday, with West Texas Intermediate crude oil futures falling down to $45.82, its lowest since early May, weighed by broad dollar´s strength and the uncertainty generated by Briton's decision to vote against remaining within the EU. US oil bounced before Wall Street's closed, but trades around $46.50 a barrel overall poised to extend its decline during the upcoming days, as in the daily chart, the 20 SMA has begun turning south well above the current level, whilst the RSI indicator accelerates south around 40 and the Momentum indicator consolidates below its 100 line. In the 4 hours chart, is the Momentum indicator which heads strongly lower near oversold levels, whilst the RSI indicator consolidates around 32, as the 20 SMA accelerates its decline below the 100 and 200 SMAs far above the current level, in line with the longer term outlook. A break below the critical 45.00 level could ignite a steeper decline as speculative stops get triggered.

Support levels: 45.80 45.20 44.60 

Resistance levels: 46.70 47.50 48.20