INTERNATIONAL CURRENCY BUZZ :
- Forex -Dollar in doldrums before U.S. payrolls report
- Forex -Dollar slips lower ahead of U.S. nonfarm payrolls
- Forex-Aussie remains in positive territory after China PMIs
EUR/USD is curently trading with a bullish bias. Unfortunately, the pair hit our stop loss and is currently trading above it. Following the break above the resistance level 1.1323, we will remain long with our next target at 1.1492. However, in case the price turn bearish and ends up closing below 1.1323, then we will be looking for short positions with our target at 1.1175. A break below 1.1175 will push the price further low to 1.0822. This is however unlikely since the price is yet to fulfill the two waves wave (c) and wave ((c)). Both the two waves should end atleast along the level 1.1492. This pair should be traded alongside GBP/USD. This pairs have a strong positive correlation of up to +0.96 and will likely move in a similar direction during this intraday. Only buy or sell Euro, if the other positively correlated pair is giving the same signal.
The pound slipped lower against the U.S. dollar on Friday, after data showed that U.K. manufacturing activity expanded at a slower rate than expected this month, altough the greenback remained fragile ahead of the release of U.S. employment data later in the day. GBP/USD hit 1.4325 during European morning trade, the session low; the pair subsequently consolidated at 1.4345, slipping 0.13%. Cable was likely to find support at 1.4191, the low of March 29 and resistance at 1.4458, the high of March 30.Markit research group said its U.K. manufacturing purchasing managers’ index rose to 51.0 in March from 50.8 the previous month, disappointing expectations for an increase to 51.2.The U.K. economy expanded 2.1% on a year-over-year basis, better than the initial estimate of 1.9%.Meanwhile, sentiment on the dollar remained fragile as investors awaited the release of U.S. nonfarm payrolls and unemployment data later Friday, for further indications on the strength of the job market.
- BUY GBP/USD ABOVE 1.4422 TARGET 1.4442 1.4472 SL BELOW 1.4392
- SELL GBP/USD BELOW 1.4311 TARGET 1.4291 1.4261 SL ABOVE 1.4341