INTERNATIONAL CURRENCY BUZZ :
- Forex – Yen weaker after CPI comes in flat for February
- Forex -Dollar poised for weekly gain after Fed officials signal rate hikes
- Forex-Dollar on track for 1 pct weekly gain, sterling down 2.4 pct
EUR/USD fell mildly on Thursday to close lower for a fifth consecutive session, amid soft durable goods orders in the U.S. and further indications that the Federal Reserve could increase the pace of its first tightening cycle in nearly a decade.The currency pair traded in a tight range between 1.1146 and 1.1187, before closing at 1.1175, down 0.04% on the session. Since surging to five-month highs last week, the euro has fallen more than 1.25% against the dollar. At session-lows, the euro dropped to its lowest level since the Fed rattled currency markets worldwide last week by unexpectedly reducing its interest rate forecast for the next three years. More broadly, the euro is down by roughly 1% over the last six weeks. EUR/USD likely gained support at 1.0538, the low from December 3 and was met with resistance at 1.1496, the high from Oct. 15.
GBPUSD is currently trading with a bearish bias. During the previous intraday, pound traded perfectly short as previous forecasted and ended up rebounding from the zone 1.4079-1.4059. In the meantime, we sit on the sidelines and wait for a clear break below 1.4059 for us to continue short with our target at 1.385. A clear rebound from this zone will mean looking for long positions with our target at 1.4270. This pair should be traded alongside EUR/USD. These pairs have a strong positive correlation of up to +0.89 and will thus likely move in a similar direction during this intraday. Only buy or sell Pound if the other positive correlated pair is giving the same signal. Conservative traders should wait for a clear breakout below 1.4059 to go short with their target at 1.385. A clear rebound from the zone 1.4079-1.4059 would mean looking for long positions with our ultimate target 1.4270. If the price rebounds from this zone, then its wise to wait for a break above 1.4176 to confirm the anticipated upward rally.
- BUY GBP/USD ABOVE 1.4180 TARGET 1.4200 1.4230 SL 1.4140
- SELL GBP/USD BELOW 1.4100 TARGET 1.4080 1.4040 SL 1.4130