INTERNATIONAL CURRENCY BUZZ :
- Forex -AUD/USD rises on positive Chinese trade data
- Forex -NZD/USD moves higher as sentiment improves
- Forex -Dollar rises against euro, yen after China data
EUR/USD is selling off heavily from the top of a descending channel that has been in play for a month now, with price moving towards the key 50-day simple moving average (SMA) (1.0814) and $1.0808 support levels. The ability to close convincingly below $1.0808 will largely dictate the state of play, with a high likeliness of a strong move lower should that occur. Given the clear downtrend in play throughout this week so far, further downside seems the most likely event, yet given the importance of the $1.0808 level, it seems prudent to await a break first. A close below $1.0808 would point towards $1.0796, $1.0781 and $1.0773 as the next support levels.However, should we see a closed hourly candle above $1.0840, this would point towards a possible rally, with $1.0880 and $1.0905 the next key resistance levels.
The GBP/USD pair trades 0.13% higher at 1.4468, having reached fresh session highs at 1.4475 last minutes. The GBP bulls regained lost momentum and returned to the positive territory as the risk-on trades dominate Europe on the back of rising European equities. Hence, the persisting risk-sentiment boosts the demand for risk currencies such as the GBP. Moreover, the solid rebound seen in the oil prices on impressive Chinese crude imports, lifts the energy stocks on the UK’s benchmark index, the FTSE 100 and therefore, boosts the sentiment around the cable. The FTSE rallies 1.09% to 5,994. Looking ahead, amid a lack of fresh fundamental triggers for the major later today, markets will closely monitor developments around the oil markets, while the sentiment on the Wall Street will also play a crucial role.
- BUY GBP/USD ABOVE 1.4480 TARGET 1.4550 1.4580 SL 1.4500
- SELL GBP/USD BELOW 1.4440 TARGET 1.4420 1.4390 SL 1.4470