INTERNATIONAL CURRENCY BUZZ :
- Forex -Yen strengthens as BoJ holds, Fed meeting ahead
- Forex -Dollar rises vs. rivals ahead of U.S. data, Fed
- Forex-Aussie, kiwi move lower vs. greenback after RBA minutes
EUR/USD continued to retreat from three-week highs from last Thursday, as market players awaited three major central banking meetings later this week.The currency pair traded between 1.1078 and 1.1153 in Monday’s session, before settling at 1.1103, down 0.0062 and 0.45% on the day. Last Thursday, the euro surged more than 1.6% against the dollar after the European Central Bank approved a wide range of stimulus measures aimed at bolstering economic growth throughout the euro zone. The euro has closed above 1.11 against its American counterpart in each of the last three sessions.EUR/USD likely gained support at 1.0709, the low from January 5 and was met with resistance at 1.1378, the high from Feb. 11.
The Cable is set to rebound. The pair has just bumped into the lower boundary of the bullish channel, which is strengthened by the long-term moving average. GBP/USD is expected to bounce off of the support area at 1.4266/30 and then rally up to 1.4550. In the longer-term perspective, the price could try re-testing 1.4670, namely the February high. Alternatively, in case the bears keep pushing the rate lower despite the density of the demand zone, another potential line in the sand will be at 1.4190/70, represented by the weekly S1 and daily S3. The distribution between the longs and shorts, however, is against the rally, being that the Sterling is already overbought—65% of traders hold bullish positions.
- BUY GBP/USD ABOVE 1.4250 TARGET 1.4270 1.4290 SL 1.4210
- SELL GBP/USD BELOW 1.4200 TAGET 1.4180 1.4150 SL 1.4230