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Technical News | GDMFX Brokerage | Daily

Discussion in 'Forex Daily News & Outlook' started by GDMFX, Jun 20, 2014.

  1. GDMFX

    GDMFX Content Contributor

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    FOREX NEWS: HIGH PRICES CALL FOR A BEARISH RETRACEMENT



    EUR/USD
    Forex News: The pair broke resistance yesterday and almost the entire day was controlled by the bulls. The US Dollar weakened on Fed comments that interest rates will be kept at low levels for “considerable time”.

    [​IMG]

    Technical Outlook
    Despite the ECB’s decision to lower rates, the Euro is not weakening against the US Dollar and we are likely to see a touch of 1.3680 resistance now that 1.3585 is decisively broken. However, today we anticipate a move lower which will clear the overbought condition indicated by the Relative Strength Index. If this move occurs, 1.3585 will most likely turn into support.

    Fundamental Outlook
    The day lacks major economic events for both the Euro and the US Dollar but the ECOFIN Meetings take place and can generate strong moves, depending on the matters discussed.


    GBP/USD
    The CBI Industrial Order Expectations announced yesterday posted a much better than anticipated value and the Pound continued its climb, breaching 1.7040 resistance.

    [​IMG]

    Technical Outlook
    If the bulls can sustain such a high price, the only level of interest to the upside is yesterday’s high and other than that we are in “uncharted” territory as far as resistance is concerned because the pair didn’t surpass 1.7040 since 2009. The Pound shows tremendous strength but retracements are to be expected considering the extended bull-run and the overbought condition signaled by the Relative Strength Index on a four hour chart.

    Fundamental Outlook
    The United Kingdom didn’t schedule major news releases but a noteworthy indicator is the Public Sector Net Borrowing announced at 8:30 am GMT and expected to increase from 9.6 billion to 11.8 billion. The indicator measures the level of debt held by the government and a negative number indicates a surplus, while a positive number suggests deficit; however, lower than anticipated values will be beneficial for the Pound.


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