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GDMFX - Technical News

Discussion in 'Forex Daily News & Outlook' started by GDMFX, Jan 7, 2014.

  1. GDMFX

    GDMFX Content Contributor

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    [​IMG]



    Forex News: A clash with resistance levels

    EUR/USD

    Forex News: Yesterday we saw the US Dollar weaken against the Euro on the back of a worse than anticipated value of the US Non Manufacturing PMI which indicated a slower pace of economic growth and was perceived as bearish for the greenback.

    [​IMG]

    Technical Outlook

    The expected bullish retracement occurred yesterday and the pair traveled north for another encounter with 1.3650 resistance. We anticipate moves to the down side if this level holds but a break would make 1.3710 the next target for the pair and also the next place where price is likely to reverse and start moving south again.

    Fundamental Outlook
    Early at 08:55 am GMT the German Unemployment Change is released, offering insights into the job-market situation of Europe’s most influential economy. The expected figure is -1K compared to the previous 10K and usually smaller than expected numbers are beneficial for the Euro as they suggest that jobs are easily available and the economy is thriving.


    GBP/USD
    Although yesterday’s trading session started on a bearish note, the US data which came out during the day weakened the greenback and allowed the pair to climb towards 1.6440.

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    Technical Outlook
    Since the beginning of the year, the pair has been moving to the down side and we consider this behavior to continue today as well. Very important for short term direction is the way price reacts near the current level of 1.6440; we anticipate a bounce lower and a move towards 1.6315 but a break to the upside is not out of the question and would indicate that bulls are not ready yet to give up their control.

    Fundamental Outlook
    The United Kingdom doesn’t release today any important economic indicators but the US will announce their Trade Balance at 1:30 pm GMT and this has the potential to be a high-impact indicator for both our pairs. The expected figure is -40.2B while the previous is -40.6B and usually higher than anticipated numbers are beneficial for the US economy as they indicate a smaller deficit.

    Written by: Bogdan Giulvezan

    The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

    More articles from the best forex broker.
     
  2. GDMFX

    GDMFX Content Contributor

    Joined:
    Nov 6, 2012
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    Occupation:
    Customer Support
    Location:
    Auckland
    Forex News: Resuming bullish price action?

    EUR/USD


    Forex News:Yesterday the pair ranged for almost the entire day and the Euro Group meetings didn’t do much to change this behavior. Resistance is still holding and price is trading very close to it.

    [​IMG]

    Technical Outlook


    Recent price action doesn’t offer a lot of hints about future direction but the resistance located at 1.3710 is still holding. However, this resistance level didn’t reject strong movement and it didn’t generate a bounce lower so we consider that it is pretty fragile and can be broken by a bullish impulse. Important data is released today so a direction will probably be established.

    Fundamental Outlook

    At 10:00 am GMT the German ZEW Economic Sentiment is released, with an anticipated decrease from the previous 61.7 to 61.3. The importance of this survey comes from the fact that it is derived from the opinions of about 275 German institutional investors and professional analysts who are asked to rate the 6 month outlook for the German economy. Due to the nature of their jobs, they are highly informed about the economic situation and can give an accurate assessment. Usually, better than expected numbers strengthen the Euro.


    GBP/USD

    Pound’s strength took the pair above the resistance located at 1.6750 but yesterday the much anticipated retracement lower finally occurred and the bears made their presence known.

    [​IMG]

    Technical Outlook

    The uptrend is still very strong and yesterday’s move lower is considered just a retracement which cleared the overbought condition of the Relative Strength Index, not a reversal. We expect trend resumption today but if price will stop in the resistance zone (1.6750), then maybe the strength of the bulls is exhausted and the bears will take over. The first potential support is located at 1.6665 and may push price higher if touched.

    Fundamental Outlook

    The United Kingdom Consumer Price Index is released today at 09:30 am GMT. This is the main gauge of inflation and it is also taken into consideration by the Bank of England when the interest rate decision is made. Values of the CPI which exceed a certain range may determine the BoE to adjust rates and although the current value of 2.0% is not expected to change today, volatility is likely to be present at the time of the release; usually higher than anticipated values strengthen the Pound.

    Written by: Bogdan Giulvezan

    The article above is based on the writer’s 5-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.

    Source of article from the best forex broker.
     
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