INTERNATIONAL CURRENCY BUZZ :
- Forex -Yen in favour as China stimulus underwhelms, euro pressured
- Forex -Yen gains on G20 disappointment, dollar climbs against euro
- Forex – Sterling pares gains after weak UK manufacturing PMI
The Euro looks poised to continue higher against the US Dollar after prices took out the top of a Triangle consolidation pattern. The breakout suggests the upside correction launched in mid-March has more room to develop beforethe larger multi-year down trend resumes.Near-term resistance is now at 1.1432, the 38.2% Fibonacci expansion, with a break above that on a daily closing basis opening the door for a chal-lenge of the 50% level at 1.1539. Alternatively, a move below resistance-turned-support at 1.1265 clears the way for a descent to the 1.1028-86 area, marked by the September 3 low and a rising trend line.
Sterling pared gains after weak activity in the U.K. manufacturing sector that neared three-year lows, according to industry data released on Tuesday.In a report, market research group Markit said that its U.K. manufacturing PMI fell to a seasonally adjusted 50.8 last month from a reading of 52.9 in January. Analysts had expected the index to inch down to 52.2 in February. The reading was its lowest level since April 2013. The pound pared earlier gains after the report, but still managed to trade higher against other Forex majors. At 9:42AM GMT or 4:42AM ET, GBP/USD traded up 0.12% at 1.3932, ith regard to cable, investors will keep an eye U.S. manufacturing data with the Institute of Supply Management scheduled to report activity in the sector at 15:00GMT or 10:00AM ET.
- BUY GBP/USD ABOVE 1.3990 TARGET 1.4010 1.4040 SL 1.3960
- SELL GBP/USD BELOW 1.3930 TARGET 1.3910 1.3880 SL 1.3960