INTERNATIONAL CURRENCY BUZZ :
- Forex -Dollar weakens further after Fed’s retreat
- Forex -Swiss franc ticks lower against euro after SNB stands pat
- Forex-Aussie, kiwi sharply higher vs. greenback after Fed statement
The single currency is extending its march north on Thursday, now lifting EUR/USD to test the vicinity of the 1.1300 handle.The greenback has accelerated its downside momentum following the opening bell in Euroland today, with markets posting moderate gains and the pair navigating fresh peaks in the boundaries of 1.1300 the figure.Later in the session, EMU’s final CPI figures for the month of February are due, followed by US Initial Claims and the Philly Fed survey. However, data releases area likely to be in the back burner as market participants keep digesting the recent dovish statement from the FOMC and crude oil dynamics keep sustaining the risk-on sentiment.
GBP/USD is currrently trading with a strong bullish bias. During the previous trading day, pound rebounded from the level 1.4065, went long an even crossed a short-term resistance level 1.42119. As long as the pair trades above this level, we will look for long positions with an ultimate target at 1.4406. In the meantime, we wait for minor retracements towards 1.42119, or below to 1.4180 for us to go long with our ideal target at 1.4406. We will only go short if the pullback breakout clearly below 1.4180. This pair should be traded alongside EUR/JPY, CHF/JPY, CAD/JPY and GBP/JPY. These pairs have strong positive correlation of up to +0.94 and will likely have a similar price action. Only buy or sell Pound if all the other positively correlated pairs are giving the same signal.
- BUY GBP/USD ABOVE 1.4320 TARGET 1.4340 1.4370 SL 1.4290
- SELL GBP/USD BELOW 1.4250 TARGET 1.4230 1.4200 SL 1.4280