INTERNATIONAL CURRENCY BUZZ :
- Forex – Yen rises to near 18-month highs against dollar
- Forex – Aussie and kiwi move lower on oil drop
- Forex- Doha meeting drives down commodity currencies
EUR/USD is flat on Monday, continuing the lack of movement which has marked the pair since late last week. With no major releases out of the Eurozone or the US, it could remain an uneventful day for the pair. In the European session, EUR/USD is trading at the 1.13 line. On the release front, the sole Eurozone event is the German central bank’s monthly report. The US will release the NAHB Housing Market Index, with little change expected. As well, New York Fed president William Dudley will deliver remarks at a meeting in New York. Tuesday will be busier, with Germany and the Eurozone releasing the ZEW Economic Sentiment reports. In the US, there is one key event, Building Permits.
GBP/USD is currently trading with a bullish bias. During the previous trading day on 15th April 2016, The Cable broke above a key resistance level 1.4179 and is currently headed long. Following this break out, we expect minor downward retracements towards 1.4202 to go long with our target at 1.4290. A clear breakout above this level will push the price further to the upper side with our next target at 1.4406. However, if the anticipated pull-back goes below 1.4168, then we will go short with our target at 1.4063. This pair should be traded alongside AUD/USD, GBP/CHF and GBP/JPY. These pairs have a strong positive correlation of up to +0.89 and will likely move in a similar direction direction during this intraday.
- BUY GBP/USD ABOVE 1.4204 TARGET 1.4224 1.4254 SL 1.4174
- SELL GBP/USD BELOW 1.4160 TARGET 1.4140 1.4110 SL 1.4190