INTERNATIONAL CURRENCY BUZZ :
- Forex – Aussie, kiwi slip lower vs. greenback
- Forex – Swiss franc hits 6-week highs against euro
- Forex – Dollar index hits 3-week highs ahead of data, Fed speakers
The selling mood is now dragging EUR/USD to fresh multi-day lows in the vicinity of 1.0970 and amidst a negative tone from European equity markets.The pair is trading in fresh 3-week troughs after quickly breaking below the psychological barrier at 1.1000 the figure today following an increasing bid tone in the greenback.Fanning the flames, crude oil prices are extending the drop, with the barrel of Brent navigating multi-day lows in the mid-$32.00s.Ahead in the day, US New Home Sales, the weekly report on inventories by the EIA and speeches by Fed’s Bullard and Kaplan (no voter) will take centre stage in the NA session.The pair is now losing 0.34% at 1.0981 facing the next support at 1.0972 (55-day sma) followed by 1.0965 (61.8% Fibo of December up-move) and finally 1.0709 (YTD low Jan.5). On the other hand, a break above 1.1108 (20-day sma) would open the door to 1.1123 (38.2% Fibo of December up-move) and then 1.1220
The pound fell below $1.40 for the first time since March 2009 on Wednesday dragged lower by uncertainty over the outcome of the looming referendum on Britain’s European Union membership. GBP/USD hit lows of 1.3965, the weakest since mid-March 2009 and was last at 1.3985, off 0.24% for the day.The pound has come under heavy selling pressure amid fears over the impact on the economy if the outcome of the June 23 referendum leads to a “Brexit”.Sterling has now lost 2.9% this week after several senior members Prime Minister David Cameron’s Conservative party, including London Mayor Boris Johnson, said they were backing the campaign to leave the EU.The pound slid lower against the euro, with EUR/GBP edging up 0.13% to 0.7870, not far from the one year high of 0.7897 set on February 11.Elsewhere, the safe haven yen remained supported as fresh falls in oil prices pulled down equity markets, dampening investor demand for riskier assets.
- BUY GBP/USD ABOVE 1.3975 TARGET 1.3400 1.3430 SL 1.3945
- SELL GBP/USD BELOW 1.3920 TARGET 1.3900 1.3870 SL 1.3950