INTERNATIONAL CURRENCY BUZZ :
- FOREX -NZD/USD slips lower, but downside seen limited
- FOREX -AUD/USD holds steady after Australian, Chinese data
- FOREX -Dollar slips as China worries vanquish investor risk appetite
The EUR/USD pair ended the week right above the 1.1000 level, and the dominant bearish trend remains in place, given that the daily chart shows that selling interest surged on an approach to the 200 DMA, whilst the Momentum indicator maintains a strong bearish, despite being in oversold territory. In the same chart, the RSI indicator has managed to bounce from oversold levels, but remains well into negative territory, leaving room for additional declines. In the 4 hours chart, the pair is struggling around a bearish 20 SMA, whilst the technical indicators have failed to advance above their mid-lines, but lack enough bearish strength to confirm a bearish movement ahead. The EUR enjoyed of some temporal demand, rising against its American rival up to 1.1072, before selling interest re-surged
The GBP/USD pair trades 0.31% higher at 1.5476, partly reversing a spike to 1.5498 daily highs. The GBP bulls took a breather and now consolidate the heavy gains seen following the release of surprisingly positive UK manufacturing PMI results.The manufacturing PMI for the UK, came in significantly better than expected at 55.5 points in October, up from a revised 51.8 points seen in September, hitting the highest level in sixteen months.Adding to the up- beat sentiment around GBP/USD, appetite for risker assets also improved as a major turn- around was seen in risk-sentiment after the European open. Meanwhile, the focus now shifts to US calendar, with the ISM manufacturing PMI reading to be closely eyed. The GBP/USD pair failed to take out 1.5500 – psychological barrier on yet another occasion and retreated nearly 25 pips as markets digest the latest UK PMI report.
- BUY GBP/USD ABOVE 1.5520 TARGET 1.5540 1.5470 SL 1.5490
- SELL GBP/USD BELOW 1.5480 TARGET 1.5260 1.5230 SL 1.5510