INTERNATIONAL CURRENCY BUZZ :
- Forex -Aussie holds steady, kiwi moves lower vs. greenback
- Forex -Euro lower as ECB easing expectations weigh
- Forex -Yen back in favour as China data hurts appetite for risk
EUR/USD is currently trading with a bearish bias. The rebound from 1.1024 invalidated the anticipated upward rally towards 1.1338, meaning, as long as the level 1.1024 is not violated, we will remain short with our ultimate target at 1.073, a break below this support would mean we are headed further short with the next ideal target at 1.05451. Ideally, in the next few days, we expect to complete the three wave cycle with the black wave (c) ending on either 1.0732 or 1.05451.In case of a violation of the level 1.1024, we will wait for a breakout above 1.1056 to continue long with our ideal target at 1.1338.
GBP/USD is currently trading with a slight bearish bias. Unfortunately, our short-term support 1.42119 was broken and the price is currently rallying below it. We expect the price to rebound from the lower supportive trend line to mark the end of the black wave (4) and to signal the unfolding of wave (5) with an ultimate target at 1.4395. A break below lower supportive trend line will push wave (4) lower to 1.4065 from where we will be looking to go long upon a clear rebound. Pound should be traded alongside, EUR/JPY and GBP/JPY. These pair have a strong positive correlation of up to +0.83 and are thus expected to have a similar price action.
- BUY GBP/USD ABOVE 1.4018 TARGET 1.40381.4068 SL 1.3988
- SELL GBP/USD BELOW 1.3950 TAGET 1.3930 1.3900 SL 1.3980