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Technical News | GDMFX Brokerage | Daily

Discussion in 'Forex Daily News & Outlook' started by GDMFX, Jun 16, 2014.

  1. GDMFX

    GDMFX Content Contributor

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    FOREX NEWS: EUROPEAN INFLATION DATA – THE DAY’S ONLY NOTABLE RELEASE


    EUR/USD
    Forex News: Friday bearish movement resumed but price action was not very fast or volatile; however, the pair traveled below 1.3560 and the Euro continued to weaken.

    [​IMG]

    Technical Outlook
    Recent price action created minor support at 1.3520 and this will be the first barrier in front of further downside movement but the bearish momentum seems to slow down lately, a fact which signifies that the pair might re-visit 1.3560 resistance. The Relative Strength Index doesn’t show an extreme reading and it’s rather neutral but Eurozone’s CPI is release today and this can be a deciding factor for the day’s direction.

    Fundamental Outlook
    At 9:00 am GMT the European Consumer Price Index is announced and anticipated to remain unchanged at 0.5%. Inflation is still a concerning matter and lower values will most likely weaken the Euro, considering the fact that ECB’s inflation target is just below 2.0% and the current CPI is far from this target.

    GBP/USD
    Bank of England Governor Mark Carney commented that a rate hike may be discussed sooner than anticipated, a fact which triggered enormous Pound strength and took the pair into the year’s high.

    [​IMG]

    Technical Outlook
    Price came within a few pips of a multi-year’s high located at 1.6996, putting the bulls in clear control of the pair. However, this control could be lost if 1.6996 (1.7000) is not broken during the next days and we must note the severe overbought condition signaled by the Relative Strength Index on a four hour chart. This increases the chance of a retracement lower which may find support at 1.6920.

    Fundamental Outlook
    The United Kingdom didn’t schedule major news releases for today and price action will be mainly affected by technical factors.


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  2. GDMFX

    GDMFX Content Contributor

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    FOREX NEWS: EURO IN CONSOLIDATION PATTERN, POUND REACHES NEW HIGHS. ECONOMIC DATA DECIDES DIRECTION



    EUR/USD
    Forex News: The pair didn’t travel a substantial distance during yesterday’s trading session and 1.3560 resistance was re-visited. Euro Zone’s CPI came out with the anticipated value and the release didn’t create a lot of volatility.

    [​IMG]

    Technical Outlook
    The pair is in a consolidation zone between1.3585 and 1.3520 and a breakout is imminent. The medium term trend is bearish so there’s a higher probability of a break of support than of resistance. If 1.3520 is broken, the next important level is located at 1.3500 followed by 1.3480 while to the upside price will encounter resistance at 1.3650 if 1.3585 will be broken.

    Fundamental Outlook
    An important German survey is released today at 9:00 am GMT: the ZEW Economic Sentiment. This indicator is based on the opinions of about 275 German professional investors and analysts who are asked to rate the current and future economic conditions. The forecast is an increase from 33.1 to 35.2, a fact which would strengthen the Euro and drive the pair higher.

    At 12:30 pm GMT the American Consumer Price Index is announced and expected to decrease from 0.3% to 0.2%, a fact which would be detrimental for the US Dollar since the CPI acts as the main gauge of inflation.

    GBP/USD
    The Pound continued to climb, fueled by speculation about a potential rate hike performed by the BoE and 1.7000 was breached as a result.

    [​IMG]

    Technical Outlook
    Immediately after piercing the multi-year top created at 1.6996, the pair returned below it, a fact which shows that resistance is still holding and it will take more than one attempt to break it. Also, the Relative Strength Index is starting to descend towards the 70 level, coming from overbought territory, a fact which favors the bears and increases the chance of a touch of 1.6920.

    Fundamental Outlook
    Price direction will be influenced today by the release of United Kingdom’s CPI which is scheduled at 8:30 am GMT. Inflation is anticipated to drop from the previous 1.8% to 1.7% and if analysts’ expectations come true or even lower numbers are posted, the Pound is likely to lose some steam. As always, the US events will have a direct impact on the pair’s direction.




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