UK’s leaving EU is settled but the influence on the global financial market will further continue. The most immediate impact is on the global monetary policies. It can be expected that both the Eurozone and UK will take looser monetary policies in order to reduce the pressure capital outflow and the economic turndown bring. It is also more risky in the global financial market so the Federal Reserve will be also more cautious about its monetary policy. They may continue to delay the interest rate hikes.
George Soros has described Britain's decision to leave the European Union as a "catastrophic scenario" for the 28-member state political bloc, saying that its disintegration is now "practically irreversible"."The consequences for the real economy will be comparable only to the financial crisis of 2007-2008." After Brexit, to prevent other countries from leaving the bloc, they must band together to save it by thoroughly
EUR/USD
According to the 60-minute chart, it is possible for a double dip. Therefore, we are mainly put option buyers before it reaches the previous low of 1.0920. It may rebound there but call option can only be purchased if that is certain because Brexit continues to bring negative influence to the market.
Support: 1.0920/1.10800 Resistance: 1.1172/1.1250
GBP/USD
According to the 60-minute chart, the double dip is already close to the previous low of 1.3264. Call option can be purchased if appropriate. However, as it is also likely to walk down at least to 1.3045 in the future, put option can be purchased when it rebounds to important resistances.
Support: 1.3264/1.3045 Resistance: 1.3833/1.4138
USD/JPY
According to the 60-minute chart, MACD forms golden cross, which means it is very likely to continue the rally. Therefore, we are mainly call option buyers during the daytime session (HK Time). But please note that there are two possibilities for the rise. It may fall down to the 100.58 support first and MACD may form golden cross again. With that being the cause, it will rise higher. The other case is that it rebounds directly. In this case, it can’t reach high places so put option can be purchased at the resistances.
Support: 100.58/100.00 Resistance: 103.00/104.00
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