MARKET UPDATES :
- Forex -Aussie, kiwi move lower after RBA move, China PMI
- Forex -Yen soars, Aussie slides after RBA cuts rates
- Forex- Dollar hits 16-month lows vs. other majors
The Euro continues to push higher against the US Dollar, with prices poised to deliver the seventh consecutive day of gains. If strength continues into the daily close, this would make for the longest winning streak since December 2013 for the single currency. Finishing the day above the 38.2% Fibonacci expansion at 1.1577 exposes the next upside barrier in the 1.1689 -1714 area, marked by the 50% level and the August 24 swing high. Alternatively, a reversal below the 1.1439-65 zone (April 12 high, 23.6% Fib) paves the way for a test of the 14.6% expansion at 1.1353.The long-term EUR/USD trend continues to look broadly bearish, painting recent gains as corrective. With that in mind, an actionable short trade setup is absent for the time being. As such, we will remain on the sidelines sand wait for signs of topping to offer a compelling selling opportunity.
Sterling retreated from four-month highs against the dollar on Tuesday after data showing that U.K. manufacturing activity contracted for the first time in over three years in April, adding to gloom over the outlook for second quarter growth.GBP/USD was last at 1.4712, still up 0.26% for the day after rising as high as 1.4769 earlier, the most since January 4. The Markit U.K. manufacturing purchasing managers’ index fell to 49.2 in April from a downwardly revised reading of 50.7 in March.Economists had expected a more modest uptick to 51.2.It was the first time that the index fell below the 50.0 level separating growth from contraction since March 2013, highlighting concerns over a deepening slow-down in the sector at the start of the second quarter.
- BUY GBP/USD ABOVE 1.4700 TGT 1.4720 1.14750 SL 1.4670
- SELL GBP/USD BELOW 1.4658 TGT 1.4638 1.4608 SL 1.4688