INTERNATIONAL CURRENCY BUZZ :
- Forex -Euro lower as markets brace for ECB meeting
- Forex -Kiwi, Aussie slip lower after RBNZ cuts rates
- Forex – Greenback rises off 4-month lows vs. loonie
EUR/USD closed sharply higher on Thursday, erasing massive losses earlier in the session, as Mario Draghi pushed the euro dramatically upward by vowing not to cut interest rates any further after the European Central Bank adopted a wide range of stimulus measures at a closely-watched meetingThe currency pair traded in a broad range between 1.0823 and 1.1217, before settling at 1.1178, up 1.75% on the session. At session lows, the euro fell to its lowest level against the dollar in six weeks. The euro, however, quickly rebounded following Draghi’s comments, reaching its highest point since mid-February.
GBP/USD is currently trading with a slight bearish bias. During the previous trading day, there were some indecision in this pair, however, during this intraday, if the price should rebound clearly from the red supportive trend line, then we will be going long with wave (5) and have our target at 1.4395. Only a clear breakout below this supportive trend line will challenge this perspective. Pound should be traded alongside GBP/CHF and NZD/JPY, these pairs have a strong positive correlation of up to +0.86 and are thus expected to have a similar chart structure.
- BUY GBP/USD ABOVE 1.4250 TARGET 1.4270 1.4300 SL 1.4220
- SELL GBP/USD BELOW 1.4180 TAGET 1.4160 1.41300 SL 1.4210