Daily Market Forecast, August 31, 2017 – EUR/USD, Gold, Crude Oil, USD/JPY, GBP/USD

EUR/USD: Euro Battered Lower

The Euro continued to weaken on Wednesday, as the currency fell below 1.19 against the U.S Dollar. The central theme surrounding the Euro appears to be the belief its gains were too quick, which led some speculators to judge it had become overvalued earlier this week. Traders may attempt buying positions today on the notion that the Euro will find support in the short term, but they should use risk management wisely.

Gold: Ready for Technical Fight

Gold’s volatility eased on Wednesday, but it has continued to stay under slight pressure as the U.S Dollar has strengthened. The price of the precious metal is still above 1300.00 U.S Dollars an ounce and it will be tested by short term technical traders the remainder of this week as support and resistance are fought over.

GBP/USD: Pound Stumbles

The Pound stumbled on Wednesday as it followed in the footsteps of most major currencies against the U.S Dollar. The British currency is lingering slightly above the 1.29 juncture early and remains closely watched. Net Lending to Individuals data yesterday, came in below expectations. The Pound may continue to find some downside pressure.

USD/JPY:  Yen Weakness Grows

The Yen has continued to remain weaker against the U.S Dollar. Risk appetite has shown an increase via Japanese investors. The Yen is above the 110.50 mark against the U.S Dollar and speculators may aim for resistance around 111.00. Industrial Production data from Japan was negative this morning.

Crude Oil: A Dangerous Juncture

Crude Oil remains locked within a dangerous price level. U.S Crude is near 46.00 U.S Dollars a barrel as many questions and concerns remain about the extent of flooding and its damage to infrastructure in Texas and Louisiana. Traders should be prepared for potential volatility in Crude Oil the next two days.

Yaron Mazor is a senior analyst at SuperTraderTV.

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