Jual Technical News | GDMFX Brokerage

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FOREX NEWS: A HIGHLY VOLATILE DOUBLE-FEATURE: ECB PRESS CONFERENCE AND AMERICAN NFP

EUR/USD

Forex News: US Employment data released yesterday showed that job creation increased more than expected according to the privately owned company that put together the report. The US Dollar benefited and managed to gain against the Euro.

Technical Outlook


Currently the pair is testing the confluence zone created by the uptrend line and the support level at 1.3640 and the last push above 1.3675 wasn’t enough to bring in more buyers and to generate a continued bullish move. The main levels to watch remain 1.3730 as resistance and 1.3520 as support but today’s technical aspect will be overshadowed by the fundamentals.

Fundamental Outlook

The ECB Interest Rate will be announced at 11:45 am GMT but no change is expected and the main event of the day will be a double feature: the ECB Press Conference and the US Non Farm Employment Change. Both events take place at the same time, 12:30 pm GMT. Mario Draghi is likely to give traders more hints about future monetary policy during his speech at the Press Conference; as always, his attitude and answers to journalists’ questions will be closely watched by market participants and the Euro will be highly affected.

The US Non Farm Payrolls are usually released Friday but this time they are released a day earlier due to Independence Day which is celebrated tomorrow. The market is likely to move very strongly at the time so we recommend caution.

GBP/USD

The United Kingdom continues to post positive economic data and this was confirmed once more yesterday when the Construction PMI showed a better than expected value. As a result the Pound strengthened and posted a new high at 1.7176.

Technical Outlook

Although we had another bullish day, the momentum seems to fade away slowly and the Relative Strength Index starts to descend. Retracements are still anticipated but the fundamental scene is filled with important events which will highly influence price action. First potential support is located at 1.7140 while yesterday’s high is considered resistance.

Fundamental Outlook

At 8:30 am GMT the Services PMI is released but its impact is usually lower than the one of the other two indexes released Tuesday and Wednesday. However, higher values than the anticipated 58.1 can strengthen the Pound and take the pair higher. An extra importance will have the US employment numbers released later in the day.

Written by: Bogdan Giulvezan

 

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FOREX NEWS: INDEPENDENCE DAY AFFECTS THE US DOLLAR. IRREGULAR TRADING EXPECTED

EUR/USD

Forex News: ECB President Mario Draghi indicated during yesterday’s Press Conference that interest rates will remain low, a fact which weakened the Euro. On the other hand, the US Dollar strengthened once the Non Farm Payrolls showed much better numbers than analysts’ forecast and these two factors generated a bear-controlled day.

Technical Outlook

The confluence zone created by the bullish trend line and the level of 1.3640 was broken decisively yesterday, a fact which would normally generate an extended move down. However, lately the pair is moving in a very difficult to predict fashion and lacks volatility, except for some isolated bursts. If the support at 1.3585 will be broken, the next logical target is 1.3520 but if this support is not broken today, we might see another move up which will encounter resistance at the recently broken trend line.

Fundamental Outlook

The day’s only noteworthy release is the German Factory Orders, scheduled at 6:00 am GMT and expected to drop significantly from 3.1% to -0.8%, a fact which would further weaken the Euro. The United States celebrate Independence Day and no economic indicators will be released. Also, American banks are closed and this might translate into irregular volatility.

GBP/USD

The Pound suffered from a lower than anticipated value of the Services PMI and the greenback strengthened on the back of positive employment data; as a result, the anticipated bearish retracement occurred and the pair touched support.

Technical Outlook

Yesterday’s touch of 1.7095 support resulted in a bounce higher so we expect to see a move that will test the recent high formed at 1.7176. The last bearish move cleared the overbought condition of the Relative Strength Index, a fact which sets the stage for further bullish moves; however, we must wait and see if the Dollar strength generated by the NFP will continue throughout today and if this is the case, price will most likely touch 1.7095 once again.

Fundamental Outlook

The United Kingdom doesn’t release any major economic data today and we expect a slow trading session, considering also the fact that US banks are closed.

We hope you had a profitable trading week and we wish you a relaxing weekend.

Written by: Bogdan Giulvezan

 

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FOREX NEWS: OPENING THE WEEK WITH RANGING PRICE ACTION

EUR/USD

Forex News: Friday the bears continued to take price lower and touched support at 1.3585 but the day lacked volatility, mostly due to the fact that the United States celebrated Independence Day and US banks were closed.

Technical Outlook

Today we are faced with a bounce-or-break scenario and the support at 1.3585 plays the main role. A bearish break would set the stage for a touch of the more important support located at 1.3520 but if sellers cannot maintain the momentum seen last week, we are likely to see a move back up into the zone around 1.3640. The Relative Strength Index is moving close to the 30 level which indicates an oversold market and slightly increases the chances of a bounce higher.

Fundamental Outlook

The day lacks major economic releases and the only notable indicator is the German Industrial Production scheduled at 6:00 am GMT. The indicator shows changes in industrial output but it is considered to have low impact on the Euro; however, higher numbers than the anticipated 0.3% usually strengthen the single currency.

GBP/USD

The Pair had a ranging day Friday but the bulls managed to surpass the previous high by a few pips before price started to move south. No major developments took place and Independence Day generated low trading volume.

Technical Outlook

We consider there’s a high chance of another encounter today with the high located at 1.7180 but a real break is less likely to occur. To the down side, the first major support is located at 1.7095 but such a distance is too much to travel on a Monday that lacks major fundamental announcements. We anticipate a ranging day, with slow price action.

Fundamental Outlook

The United Kingdom didn’t schedule any major economic releases for today so price direction will be mostly influenced by the technical aspect.
Written by: Bogdan Giulvezan

 

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FOREX NEWS: ALL EYES ON GERMAN TRADE BALANCE AND UK’S MANUFACTURING NUMBERS

EUR/USD

Forex News: The pair traded in a 30 pip range yesterday as no major economic releases affected price movement and we saw a small bounce off support. Germany’s Industrial Production came out worse than anticipated but the event didn’t have a strong impact.

Technical Outlook

According to the ranging behavior exhibited lately by the pair, the next possible move is a bounce higher off 1.3585 support, considering also the fact that the Relative Strength Index is moving upwards after a brief encounter with its 30 level; if this bounce occurs, the resistance at 1.3640 will be the next target but a break of support will make 1.3520 the immediate bearish destination.

Fundamental Outlook

The German Trade Balance comes out today at 6:00 am GMT with an anticipated decrease from the previous 17.7B to 15.7B. The indicator shows the difference between imported and exported goods and a positive numbers means that more goods were exported than imported, a fact which usually strengthens the Euro.

GBP/USD

Overall the Pound had a bearish day but support wasn’t touched and price didn’t make any spectacular moves. Trading lacked major reversals or whipsaws.

Technical Outlook

We consider that the pair’s first target is the support located at 1.7095 and once this retracement lower is completed, we expect the bullish trend to resume for another attempt to break 1.7180 resistance. A break of 1.7095 would encounter potential support at 1.7063 but today’s price action will most likely be decided by economic factors.

Fundamental Outlook

AT 8:30 am GMT the UK Manufacturing Production is released. This indicator shows the change in the total value of output produced by manufacturers and represents about 80% of the entire UK Industrial Production; higher numbers suggest increased economic activity and thus, a stronger Pound. The anticipated change is 0.5%, compared with last month’s 0.4%.
Written by: Bogdan Giulvezan

 

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FOREX NEWS: US DOLLAR STILL WEAK AGAINST ITS COUNTERPARTS. FOMC MINUTES IN THE SPOTLIGHT

EUR/USD

Forex News: Price moved north yesterday after bouncing for a second time off of 1.3585 support and the Euro bulls proved they are not yet ready to admit defeat. The rise was partly generated by a surprisingly better value of the German Trade Balance.

Technical Outlook

Latest price action indicates that the next destination of the pair is the resistance located at 1.3640 as price tried on two separate occasions to break 1.3585 but failed. However, if the bears manage to tip the scales in their favor by breaking 1.3585, the pair’s next target will become 1.3520 support. Our bias is mainly neutral on the pair as the daily range is about 30 pips and price movement is extremely slow.

Fundamental Outlook

The main event of the day is the release of the FOMC Meeting Minutes scheduled at 6:00 pm GMT. The document will offer insights into the reasons that stood behind the FOMC members’ vote regarding the US interest rate and will probably give some hints about future monetary direction. Usually this event creates strong movement so we recommend caution if trading at the time.

At 7:30 pm GMT, ECB President Mario Draghi will deliver a speech in London at the Tommaso Padoa-Schioppa Memorial Lecture. Although the speech is not directly related to ECB’ monetary policy, Draghi’s public appearances can always influence the Euro strongly and caution is recommended as well.

GBP/USD

The Pound lost ground against the US Dollar during the first part of yesterday’s trading session as the UK Manufacturing Production showed a totally disappointing decrease of -1.3%. Later in the day however, the bulls erased most of the losses.

Technical Outlook

Yesterday we saw an immediate rejection when price touched the support zone created at 1.7095, a fact that shows that bulls still have a lot of underlying strength and could very well take the pair into 1.7180 area. Despite bad UK economic data, the US Dollar cannot take the Pound lower and for the time being, support is holding so the chances of a new high have increased.

Fundamental Outlook

Today the United Kingdom didn’t schedule any market moving economic indicators so price direction will be influenced by the FOMC Meeting Minutes and by technical factors.

Written by: Bogdan Giulvezan

 

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FOREX NEWS: THE GREENBACK CONTINUES TO LOSE GROUND. RESISTANCE LEVELS THREATENED

EUR/USD

Forex News: Yesterday, before the FOMC Meeting Minutes, the pair rose to touch resistance as the US Dollar continued to lose ground against the Euro. The Minutes had a mixed impact and took the pair higher after an initial drop.

Technical Outlook

The bulls have the opportunity to break 1.3640 resistance and to take the pair into 1.3675. Since we are trading in a range-bound market, support and resistance levels tend to have a greater importance than in a trending market so if price stalls at 1.3675 and the Relative Strength Index becomes overbought, we anticipate a bearish pullback.


Fundamental Outlook

The ECB will release their Monthly Bulletin today at 8:00 am GMT; the document will contain an economic outlook and economic expectations from the bunk’s perspective and also reveals the data which was analyzed when the ECB made the Interest Rate decision. The event is considered to have a medium impact on the Euro unless surprising data is revealed.

GBP/USD

The pair touched support once again but the release of the FOMC Meeting Minutes generated a push north and currently the pair is headed towards 1.7180 top.

Technical Outlook

The US Dollar doesn’t seem to have an answer for Pound’s strength and the bears cannot break a single support level. Every time the pair touches the support at 1.7095, it bounces upwards but on the higher time frames, price is overbought and retracements lower are a distinct possibility. Until 1.7180 or 1.7095 is broken, out bias is neutral on the pair.

Fundamental Outlook

The bunk of England announces today the Interest Rate but no change is anticipated from the current 0.50% and probably the event will just create irregular volatility at the time of the release. If any hints are offered about future rate increases or if speculation takes over the market, we will probably see strong movement for the Pound. The scheduled time is 11:00 am GMT and we recommend caution if trading.

Written by: Bogdan Giulvezan

 

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FOREX NEWS: THE LACK OF IMPORTANT ECONOMIC RELEASES SETS THE STAGE FOR SLOW PRICE ACTION

EUR/USD

Forex News: The Euro lost its appeal for investors as a Portuguese bunk missed debt payments and generated concerns for the region’s economic recovery. As a result, the pair bounced lower at resistance and support is threatened again.

Technical Outlook

The resistance zone located at 1.3640 – 1.3650 held perfectly yesterday and stopped the previous rally, generating a swift move into the support located at 1.3585. The same bounce-or-break scenario will be played out today: a bearish break will open the door for a touch of 1.3520 while a bounce higher will make 1.3640 the first upper target once more. A breakout is anticipated, considering that for the entire week the pair traded in this narrow range, but the direction is unclear.

Fundamental Outlook

We have a slow day ahead, with no major economic news scheduled for release by either Europe or the United States. Price action is expected to be ranging unless unscheduled events occur.

GBP/USD

bunk of England decided to keep the interest rate at a record low of 0.50%, a fact that was anticipated by market participants and as a result, it didn’t create any market volatility.

Technical Outlook

The bulls didn’t manage to take price as high as 1.7180 and yesterday the pair’s direction was bearish; however, 1.7095 wasn’t threatened and price remained inside the channel created by the two mentioned levels. As we stated before, the pair is overbought on the higher time frames and this increases the chance of a bearish move, but we maintain our neutral stance until a break of either support or resistance occurs.

Fundamental Outlook

The day is calm for the Pound as the United Kingdom didn’t schedule for release any high-impact indicators. Price direction will be mainly affected by technical factors.


We hope you had a profitable trading week and we wish you a relaxing weekend.


Written by: Bogdan Giulvezan

 

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FOREX NEWS: MIXED PRICE ACTION AHEAD OF MARIO DRAGHI’S TESTIMONY

EUR/USD

Forex News: Friday lacked major news announcements and price action was extremely slow, moving sideways for almost the entire day. Support is still holding as the pair traded in a 35 pip range.

Technical Outlook

Price remains confined within the horizontal channel created by the support located at 1.3585 and the resistance at 1.3640. Lately the pair totally lacks volatility and bounces between S/R levels as neither bulls nor bears seem interested to take control of direction. We expect more of this type of movement until 1.3640 or 1.3585 is broken, a fact which may occur today during Mario Draghi’s speech.

Fundamental Outlook

At 5:00 pm GMT, ECB President Mario Draghi will testify on monetary policy in Strasbourg, before European Parliament’s Committee on Economic and Monetary Affairs. The speech will most likely offer clues about future monetary direction and actions of the ECB, probably generating a price breakout. We recommend caution if trading during the speech.

GBP/USD

The Pound slowed down Friday and weakened against the greenback but the bears couldn’t take the pair below 1.7095 and the week finished above this support.

Technical Outlook

The support at 1.7095 has been tested several times and the downwards pressure is increasing lately. The Pound reached historical highs and now the time for a bearish retracement has come, considering the fact that price is overextended and the Relative Strength Index is moving down from overbought territory on the higher time frames (Daily and Weekly). If today 1.7095 is broken, the first potential target is 1.7063; otherwise we will have another day when price ranges inside the channel.

Fundamental Outlook

We have a calm economic day as no major events are scheduled by the UK. Price action will be mostly driven by technical factors.

Written by: Bogdan Giulvezan

 

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FOREX NEWS: FULL DAY AHEAD. HIGH-PROFILE EVENTS AND HEAVY MOVEMENT EXPECTED

EUR/USD

Forex News: The Euro adopted a bullish path yesterday on the back of speculation that the ECB might use more stimulus measures such as a lending program which will boost consumer credit.

Technical Outlook

The pair moved higher, in close vicinity of 1.3640 resistance but according to the ranging style which governs the market lately, it bounced lower. The main levels to watch remain1.3640 as resistance and 1.3585 as support but considering today’s main events, we anticipate a breakout; however, the direction will be totally dependent on the outcome of these events.

Fundamental Outlook

Germany will announce at 9:00 am GMT the ZEW Economic Sentiment will be released, showing the level of optimism among German institutional investors and analysts who are highly informed about economic conditions due to the nature of their jobs. The anticipated value is 28.9, a decrease from the previous 29.8 and lower numbers usually weaken the Euro.

The US Retail Sales are released at 12:30 pm GMT; the indicator measures the change in sales made at retail outlets and its release is considered to have a high impact. The expected value is 0.6% compared with the previous 0.3% and higher numbers are beneficial for the US Dollar.

Fed Chair Janet Yellen will testify today at 2:00 pm GMT in Washington before the Senate Banking Committee; the topic is the Semiannual Monetary Policy Report and the speech is likely to be a major market mover, especially during its the second part when members of the Committee will ask questions and Janet Yellen will answer them.

GBP/USD

The Pound finally retraced yesterday and managed to break the closest support. The move south is attributed to high prices that were overextended and in need of a breather.

Technical Outlook

The break of the support located at 1.7095 is not a reason to believe the uptrend has finished but rather a signal that bullish momentum is fading. The chances of moves upwards remain high and a good place for uptrend resumption is 1.7063 (which is potential support, not confirmed yet), followed by 1.7010. The day’s fundamental events will have a very high impact on price action.

Fundamental Outlook

United Kingdom’s Consumer Price Index will be announced today at 8:30 am GMT. The indicator shows the price that consumers have to pay for the goods they purchase and is the main gauge of inflation; any increases above the expected 1.6% can further strengthen the Pound, taking the pair higher.

BOE Governor Mark Carney will testify at 9:00 am GMT about the Financial Stability Report at the House of Commons Treasury Committee Hearing. The testimony can have a huge effect on Pound’s movement, depending on the Governor’s attitude and answers so we recommend caution if trading at the time. Of course, the US events mentioned above will have a direct and high impact on price action.

Written by: Bogdan Giulvezan

 

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FOREX NEWS: US DOLLAR IN THE SPOTLIGHT FOR YELLEN’S SECOND TESTIMONY

EUR/USD

Forex News: Germany posted yesterday a disappointing number for the ZEW Economic Sentiment, showing that optimism regarding economic conditions is declining. On top of that, Fed Chair Janet Yellen stated that the economy continues to improve and the US Dollar added to the previous gains.

Technical Outlook

The support at 1.3585 was broken yesterday on the back of Euro weakness coupled with greenback strength but the level still needs to be re-tested to confirm the break. This re-test is usually seen easier on a lower time frame and if it is successful, we anticipate a touch of the next support, located at 1.3520. A move back above 1.3585 would make 1.3640 the first target and would suggest that the ranging period is still not over.

Fundamental Outlook

The US Producer Price index is released at 12:30 pm GMT, showing the change in prices paid by producers for their goods and services, compared to the previous month. The indicator has inflationary implications because a higher price charged by producers will be eventually passed on to retailers and ultimately, to the consumer. The expected change is 0.2% compared with last month’s -0.2% and higher numbers are considered beneficial for the greenback. Later in the day, at 2:00 pm GMT Fed Chair Yellen will testify before the House Financial Services Committee, an event considered to have a high impact on the US Dollar.

GBP/USD

The Pound scored another major victory against the greenback as United Kingdom’s CPI showed an unexpected increase from 1.5% to 1.9%. As a result, the pair printed a new multi-year high at 1.7191.

Technical Outlook

Although we have a new high, the resistance located around 1.7180 held yesterday and even rejected price lower; at the moment, that resistance is just pierced, not broken and we expect a new descent into 1.7095 support zone as the market is still overextended. A daily close above 1.7180 would be considered a true break of resistance and would indicate that higher prices will follow.

Fundamental Outlook

The day’s main event for the Pound is the release of the Claimant Count Change, an indicator which tracks changes in the number of unemployed people claiming social help due to their lack of jobs. A higher number suggests economic contraction and usually weakens the Pound; the release is scheduled at 8:30 am GMT and the expected change is -27.1K while the previous was -27.4K.


Written by: Bogdan Giulvezan

 

[pasfx]

FOREX NEWS: ALL EYES TURN TOWARDS EUROPEAN INFLATION INDICATORS

EUR/USD

Forex News: The US Dollar continued to advance against the Euro as Fed Chair Janet Yellen maintained a hawkish attitude and the US Producer Price Index change surpassed analysts’ expectations. Price is nearing support but no attempts were made to break it.

Technical Outlook

An important support for medium term price action is ahead: 1.3520 and we are faced with another bounce-or-break scenario. However, this time we slightly favor a bounce north, mostly because the Relative Strength Index has passed the 30 level downwards, suggesting oversold conditions and from a medium term perspective, the pair has been ranging. If the current support is broken, the next destination is likely to be 1.3480 (visible on a Daily chart).

Fundamental Outlook

The day’s main event will be the release of the European Consumer Price Index scheduled at 9:00 am GMT and expected to remain unchanged at 0.5%. ECB’s inflation target is just below 2% and the current CPI value is considered too low, thus an even lower value would be detrimental for the Euro.

At 2:00 pm GMT the Philly Fed Manufacturing Index comes out, showing the opinions of about 250 manufacturers from the Philadelphia district regarding current economic and business conditions. The expected value is 15.6, a decrease from the previous 17.8 and lower numbers usually weaken the greenback.

GBP/USD

The pair had a mixed trading day yesterday and price remained confined between support and resistance despite signs of improving job market in the United Kingdom.

Technical Outlook

Price is still on its way to 1.7095 following a bounce off 1.7180 resistance zone. The Relative Strength Index doesn’t show an extreme reading so there is no major reason to believe that bulls will take back control of the pair unless the US economy will show surprising figures.

Fundamental Outlook

The United Kingdom has a calm day ahead in terms of economic releases so all eyes will turn towards the United States events.

Written by: Bogdan Giulvezan

 

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FOREX NEWS: SUPPORT LEVELS AHEAD. A BOUNCE-OR-BREAK SCENARIO UNFOLDS

EUR/USD

Forex News: The pair touched 1.3520 support yesterday but the European CPI remained unchanged and price stalled. The US Manufacturing Index for the Philadelphia district posted a surprisingly good value but the release just briefly strengthened the US Dollar.

Technical Outlook

The bears’ run seems exhausted and the Relative Strength Index is starting to climb out of oversold territory, a fact which suggests that support is still too strong for the sellers to break and that a bounce up might be next. However, yesterday’s ranging price action leaves the door open for both a bounce and a break. First resistance is located at 1.3585 while support sits at 1.3480 (if the current level is broken).

Fundamental Outlook

The sole release that can trigger sharp moves is the US Consumer Sentiment which is a leading indicator of consumer spending because usually when people are optimistic about the country’s economic conditions, they tend to spend more. The release is scheduled at 1:55 pm GMT and the expected figure is 83.5, a rise from the previous 82.5; if analysts’ forecast is surpassed, we are likely to see US Dollar strength.

GBP/USD

The Pound wasn’t affected by major news releases yesterday and the pair continued to move down towards 1.7095 as predicted. The US release helped the bears achieve this target.

Technical Outlook

For medium term movement, the support located at 1.7063 is very important but the first barrier in front of falling prices is the current level of 1.7095. A break of both these levels would indicate that the pair is ready for a bigger retracement and that the uptrend is starting to fade away. A bounce higher could potentially generate a climb back into 1.7180 area of resistance.

Fundamental Outlook

Ahead we have another day that lacks major United Kingdom news, thus price direction will be mainly affected by the technical factors and by the US release.

We hope you had a profitable trading week and we wish you a relaxing weekend.

Written by: Bogdan Giulvezan

 

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FOREX NEWS: A LACKLUSTER FUNDAMENTAL SCENE TRANSLATES INTO A SLOW MONDAY

EUR/USD

Forex News: Friday’s trading session was characterized by a major reversal of what seemed to be a clear break of support. The US Consumer Sentiment survey showed a small decrease but the release didn’t have major impact on the pair.

Technical Outlook

Once price entered the zone created between 1.3520 and 1.3480 it was immediately rejected higher. This fact shows that bulls still have underlying strength and that a break of support is a low probability occurrence. The Relative Strength Index continues to move upwards, coming from an oversold condition and for today, we expect higher prices but a slow, ranging day is also a distinct possibility since no major economic indicators are released.

Fundamental Outlook

The German Bundesbank will release their Monthly Report at 10:00 am GMT, containing statistical data and analysis of current and future financial conditions. The event tends to have a higher impact if Bundesbank’s viewpoint differs from the one shown by the ECB.

GBP/USD

The pair had mixed direction Friday as the bears controlled the first part of the day but the Pound erased almost all losses during the second part. Support was tested but price was price higher after a brief dip below.

Technical Outlook

The fact that price was rejected after trying to break 1.7063 may very well be a sign that bulls are ready to resume upwards movement and to take the pair into 1.7180 once again. Even if such a move occurs, we don’t believe the entire distance will be traveled in one day and at the moment 1.7095 sits in front of rising prices. We anticipate a ranging day, with price moving above and below the level which was just mentioned.

Fundamental Outlook

The United Kingdom didn’t schedule major news releases for today, thus price action will be mainly influenced by the technical aspect.

Written by: Bogdan Giulvezan

 

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FOREX NEWS: MARKET PICKS UP DIRECTION AHEAD OF US INFLATION DATA

EUR/USD

Forex News: Yesterday’s trading session was mostly characterized by indecision and we saw the pair move higher just to drop immediately to touch support again. Overall the direction was mixed and price had ranging behavior.

Technical Outlook


For today we expect a more directional price action as the pair will probably break away from the current level of 1.3520. However, the direction of the move will be mostly influenced by the US economic data due to be released today, because the technical side of the market doesn’t hold any special clues. Yesterday’s high (1.3550) will potentially act as resistance while 1.3520 – 1.3500 zone still acts as support.

Fundamental Outlook

The day’s main event is the release of the US Consumer Price Index, scheduled at 12:30 pm GMT. A small change is expected from the previous 0.4% to 0.3%, a fact which would suggest that inflation has slowed down and could potentially weaken the US Dollar. AT 2:00 pm GMT the US Existing Home Sales numbers are released, showing the change in the annualized number of houses sold during the last month. If the number of houses sold increases, this often means that the buyers will spend additional money for furniture, house appliances, electronic devices, etc., thus spurring consumer spending. It also indicates that people are confident in economic conditions since a house is purchased usually when the economy is thriving. Today’s expected number is 4.98M, an increase from last month’s 4.89M.

GBP/USD

The lack of major economic releases generated a ranging day for the GBP/USD as well. Price moved between 1.7095 and 1.7063 without being able to break free for the entire day.

Technical Outlook

If the bears can take price below 1.7063 and at least one four-hour candle will close below this level, we are likely to see a touch of 1.7010 support next. A move above 1.7095 will open the door for uptrend resumption and possibly a touch of 1.7080 resistance zone (even if this comes true, the distance is too big to be traveled in a single day).

Fundamental Outlook

AT 10:00 am GMT the Confederation of British Industry will announce the Industrial Orders Expectations. This is a survey based on the opinions of about 550 manufacturers which shows the expectations of order volume for the next 3 months. Analysts’ forecast is a decrease from the previous 11 to 9, a fact which would be detrimental for the Pound if it were to come true.

Written by: Bogdan Giulvezan

 

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FOREX NEWS: BEARS BREAK SUPPORT. SOME CORRECTION EXPECTED

EUR/USD

Forex News: The US Dollar strengthened yesterday against the Euro as speculation of Fed increasing interest rates took over the market. The American Consumer Price Index came out as anticipated, at 0.3%.

Technical Outlook


The pair finally broke the support zone created around 1.3500 and is now headed for the next important level of 1.3400 seen on the daily chart above. However, from a four hour chart perspective, the Relative Strength Index has passed the 30 level to the downside once again, suggesting an oversold condition of the market. This indicates that upside corrections are likely to happen today and we expect moves above 1.3480 before price can resume bearish movement.

Fundamental Outlook

Today price action will be dictated mainly by the technical factors since no major economic indicators are released by either the United States or Europe.

GBP/USD

Price moved below 1.7063 yesterday on the back of US Dollar strength but the gains weren’t as significant as the ones seen against the Euro. The pair continues to lack clear direction but the long term uptrend is severely weakened.

Technical Outlook

The first barrier in front of the bears is located at 1.7010 but for the time being the support at 1.7063 is still not clearly surpassed. The four hour candle has long upper and lower wicks, a fact which indicates indecision and shows that control doesn’t belong to either side completely. The pair’s direction will be decided today by the fundamental aspect.

Fundamental Outlook

At 8:30 am GMT the votes on the latest BOE interest rate will be made public, showing how many MPC members voted for a rate change and how many voted to keep the rate unchanged. Analysts predict that all 9 members voted to keep rates unchanged and if this forecast comes true, the impact of the release will be mild.

At 11:45 am GMT, BOE Governor Mark Carney will speak in Glasgow at the Commonwealth Games Trade and Investment conference. As always, his speeches can be accompanied by increased volatility and sudden moves, thus caution is recommended.

Written by: Bogdan Giulvezan

 

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FOREX NEWS: MANUFACTURING DATA BRINGS THE EURO OUT OF CONSOLIDATION PHASE

EUR/USD

Forex News: Price moved sideways for the entire day yesterday as no major economic indicators were released by either the United States or Europe. The trading session was extremely slow and no important levels were broken.

Technical Outlook

The pair almost paused yesterday, consolidating below 1.3480 and moving in a 20 pip range for almost the entire day, making trading very difficult. Also, yesterday’s price action doesn’t add any clues to the pair’s next direction so we maintain our belief that price will correct slightly to the north before dropping further. On a four hour chart the Relative Strength Index is coming out of oversold territory, a fact which adds to the bias showed above.

Fundamental Outlook

The Euro will be influenced today by two releases: at 7:00 am GMT the French Manufacturing PMI is scheduled and at 7:30 am GMT, the same indicator for the German economy comes out. The French PMI is expected to increase from 48.2 to 48.5 while the German PMI is anticipated to change from 52.0 to 52.2. These are surveys derived from the opinions of purchasing managers from the Manufacturing sector and better readings show optimism, usually strengthening the single currency.

GBP/USD

All members of BOE’s Monetary Policy Committee voted to keep rates unchanged but the Minutes of their latest meeting were a bit more dovish than market participants anticipated and the Pound weakened throughout the day as a result.

Technical Outlook

We expect the current direction to continue until 1.7010 is touched as this is the first level of support and it is likely to act as a magnet for price. Yesterday price moved north to touch 1.7095 and immediately bounced lower, showing that this level is now resistance. If the Relative Strength Index will indicate oversold conditions once support is touched, the probability of a move north will increase.

Fundamental Outlook

The main event for the Pound will be the release of UK’s Retail Sales, scheduled at 8:30 am GMT. Sales made at a retail level represent a major part of the economy and thus hold a great importance for the Pound’s strength. The anticipated change is 0.2%, compared with last month’s -0.5%, a fact which would strengthen the Pound if it were to come true.

Written by: Bogdan Giulvezan

 

[pasfx]

FOREX NEWS: MANUFACTURING DATA BRINGS THE EURO OUT OF CONSOLIDATION PHASE

EUR/USD

Forex News: Price moved sideways for the entire day yesterday as no major economic indicators were released by either the United States or Europe. The trading session was extremely slow and no important levels were broken.

Technical Outlook

The pair almost paused yesterday, consolidating below 1.3480 and moving in a 20 pip range for almost the entire day, making trading very difficult. Also, yesterday’s price action doesn’t add any clues to the pair’s next direction so we maintain our belief that price will correct slightly to the north before dropping further. On a four hour chart the Relative Strength Index is coming out of oversold territory, a fact which adds to the bias showed above.

Fundamental Outlook

The Euro will be influenced today by two releases: at 7:00 am GMT the French Manufacturing PMI is scheduled and at 7:30 am GMT, the same indicator for the German economy comes out. The French PMI is expected to increase from 48.2 to 48.5 while the German PMI is anticipated to change from 52.0 to 52.2. These are surveys derived from the opinions of purchasing managers from the Manufacturing sector and better readings show optimism, usually strengthening the single currency.

GBP/USD

All members of BOE’s Monetary Policy Committee voted to keep rates unchanged but the Minutes of their latest meeting were a bit more dovish than market participants anticipated and the Pound weakened throughout the day as a result.

Technical Outlook

We expect the current direction to continue until 1.7010 is touched as this is the first level of support and it is likely to act as a magnet for price. Yesterday price moved north to touch 1.7095 and immediately bounced lower, showing that this level is now resistance. If the Relative Strength Index will indicate oversold conditions once support is touched, the probability of a move north will increase.

Fundamental Outlook

The main event for the Pound will be the release of UK’s Retail Sales, scheduled at 8:30 am GMT. Sales made at a retail level represent a major part of the economy and thus hold a great importance for the Pound’s strength. The anticipated change is 0.2%, compared with last month’s -0.5%, a fact which would strengthen the Pound if it were to come true.

Written by: Bogdan Giulvezan

 

[pasfx]

FOREX NEWS: BEARS IN CONTROL BUT BULLISH PRESSURE MOUNTS

EUR/USD

Forex News: Yesterday the Euro was strongly affected by a German survey which showed that optimism among purchasing managers from the Manufacturing sector has increased. The better than expected value reversed a previous drop generated by the French counterpart of the same indicator.

Technical Outlook

At the moment price is re-testing the recently broken level of 1.3480 and if this results in a bounce lower, the level will turn into resistance and the door will be open for a move towards 1.3400 which is the next support. If 1.3480 doesn’t become resistance, the next level that can stop bullish movement is located at 1.3500.

Fundamental Outlook


At 8:00 am GMT the German IFO Business Climate is released and expected to show a value of 109.6. The survey draws its importance from the large sample of about 7,000 businesses which are asked to rate the current economic conditions and to give a 6-month outlook. Under normal circumstances, better than anticipated numbers strengthen the Euro and push the pair higher.

The US Durable Goods Orders come out at 12:30 pm GMT and a hefty increase is expected: 0.4% from the previous -0.9%. This is a leading indicator of production since more orders suggest that producers will have to increase their activity in order to fill them.

GBP/USD

United Kingdom’s Retail Sales disappointed as the value was lower than forecast and this fact triggered Pound weakness which took the pair below support.

Technical Outlook

The level at 1.7010 was broken decisively and lower prices may follow, but before that can happen, a pullback to the upside is very probable; the Relative Strength Index has already passed the 30 level, reaching oversold territory, a fact which increases bullish pressure. The first potential resistance is now located at 1.7010 while support sits at 1.6950 followed by 1.6920.

Fundamental Outlook

United Kingdom’s most important gauge of economic performance is announced today at 8:30 am GMT: the Gross Domestic Product. No change is expected from last month’s value of 0.8% but any fluctuations will most likely have a big impact.

We hope you had a profitable trading week and we wish you a relaxing weekend.

Written by: Bogdan Giulvezan

 

[pasfx]

FOREX NEWS: ALL THE INGREDIENTS FOR A MARKET STORM ARE PRESENT. MAJOR US EVENTS SCHEDULED

EUR/USD

Forex News: The US Dollar strengthened yesterday on the back of improved American consumer confidence as shown by a report which came out with a reading of 90.9 compared with the anticipated value of 85.5. Sellers controlled the day but the distance traveled wasn’t spectacular.

Technical Outlook

Price is close to the support located at 1.3400 and we consider that today this level will be touched. The technical aspect of the market will be greatly overshadowed by the fundamentals but keep in mind that the Relative Strength Index is moving again below the 30 level, a fact which indicates an oversold market and favors bullish moves. Support is still located at 1.3400 while resistance sits at 1.3480.

Fundamental Outlook

The first event of the day is the release of the German Consumer Price Index, scheduled at 12:00 pm GMT and expected to decrease slightly from the previous 0f 0.3% to 0.2%. Such a decrease would be detrimental for the Euro as German inflation accounts for the major part of Euro Zone’s inflation.

The ADP Non Farm Employment Change is released at 12:15 pm GMT, showing the change in the number of jobs created during the last month. The report is put together by a privately owned company and tries to mimic the more important Government issued data which comes out 2 days later. The expected number is 234K and better numbers usually strengthen the greenback.

At 12:30 pm GMT the American Advance Gross Domestic Product is announced with a hefty increase expected: 3.1% while last month’s value was -2.9%. Such a big change would benefit the Dollar as the GDP is the main gauge of an economy’s performance and this is the earliest version which usually has the highest impact.


Later in the day, at 6:00 pm GMT the American interest rate is announced but no change is anticipated and the FOMC Statement which accompanies the rate decision will be a more important market mover as it outlines possible future rate changes and the pace of the bond-buying program.

GBP/USD

The Pound was little affected by economic releases yesterday and Dollar strength took the pair below minor support.

Technical Outlook

A strong support level is ahead: 1.6920; price is likely to stall or even reverse here, considering also the position of the Relative Strength Index, but as we mentioned above, the US Dollar will be highly affected today by economic data and the technical aspect will be secondary. The next strong and confirmed support (if 1.6920 is broken) is located at 1.6700 while first resistance sits at 1.7010.

Fundamental Outlook

The United Kingdom didn’t schedule major news releases and all eyes will be focused on the United States.

Written by: Bogdan Giulvezan

 

[pasfx]

FOREX NEWS: NON FARM PAYROLLS – THE WEEK’S FINAL MARKET MOVER

EUR/USD

Forex News: The pair had mixed direction yesterday as the Euro was weakened by a disappointing value of the Consumer Price Index, but apparently the US Dollar wasn’t strong enough to take the pair significantly lower.

Technical Outlook

From a four-hour chart perspective the pair is in a clear downtrend but signs of weakness are present although the support at 1.3400 was broken and was tested from below several times (visible on the lower time frames). A sign of weakness is the fact that bears failed to break the low at 1.3366 even if 1.3400 turned into resistance; also, the Relative Strength Index spent a lot of time hugging the 30 level which suggests an oversold market. However, today’s direction will be decided by the fundamental rather than the technical aspect.

Fundamental Outlook

The day’s market moving event is the release of the US Non Farm Payrolls which is the most important jobs-related data for the US economy and tracks changes in the number of employed people during the previous month, excluding the farming sector. The release is scheduled at 12:30 pm GMT and the expected change is 230K while last month’s number was 288K. Such a decrease would weaken the greenback and drive the pair higher.

GBP/USD

The Pound continued to lose ground to the US Dollar yesterday and we saw the bears in control for the most part of the day. Broken support was successfully re-tested from below and price bounced lower.

Technical Outlook

The Relative Strength Index is trading below the 30 level for an extended period of time and the short term downtrend is in need of a retracement higher. Yesterday’s low will most likely act as minor support and if today the bears don’t manage to break it, we will most likely see higher prices. The US Dollar will be highly affected by the NFP release and the technical aspect will be secondary.

Fundamental Outlook

United Kingdom’s Manufacturing PMI will be released today at 8:30 am GMT and expected to drop slightly from the previous 57.5 to 57.2. This survey is based on the opinions of purchasing managers from the manufacturing sector and acts as a leading indicator of economic health so better than expected numbers will probably strengthen the Pound.

We hope you had a profitable trading week and we wish you a relaxing weekend.

Written by: Bogdan Giulvezan