INTERNATIONAL CURRENCY BUZZ :
- Forex -Aussie, Kiwi hold steady, eyes on Fed announcement
- Forex -Yen reverses early weakness, gains in Asia, China CPI noted
- Forex- Dollar hits fresh 17-month lows against yen
The single currency has now come under renewed selling pressure, dragging EUR/USD to the area of session lows near 1.1380.Spot has given away recent gains and returned to sub-1.1400 levels at the beginning of the week following a positive start of equity markets in the Old Continent. Later in the day, market participants will remain wary of the unexpected closed meeting between Fed governors with fund rates on top of the agenda on an otherwise empty calendar in both Euroland and the US. The pair is now losing 0.11% at 1.1389 facing the next support at 1.1325 (low Apr.6) ahead of 1.1305 (23.6% Fibo of 1.0820-1.1455) and finally 1.1151 (55-day sma). On the other hand, a break above 1.1454 (2016 high Apr.7) would target 1.1496 (monthly high Oct.15 2015) en route to 1.1713 (high Aug.24 2015).
The Cable was highly volatile last week, reaching a high of 1.4319 and a low of 1.4004. The overall bias remains bearish in the near-term, though the bulls are not keeping their fingers crossed this time around. They would most probably effect a rally, which would jeopardize the current bearish bias, especially when the distribution territory at 1.4400 is overcome. This would require a strong rally, which would occur because the outlook on GBP pairs is bright for this week. GBP/USD is currently doing some corrective moves above the support zone of 1.4118, after a rebound that was made around the 1.4062 price level. The bullish move can be extended and the price could go towards the 200 SMA on the H1 chart, where a pullback can happen to resume the bearish bias. The MACD indicator is favoring the corrective scenario as it stays above the positive territory.
- BUY GBP/USD ABOVE 1.4227 TARGET 1.4147 1.4087 SL 1.4087
- SELL GBP/USD BELOW 1.4140 TARGET 1.4120 1.4090 SL 1.4170