MARKET UPDATES :
- Forex – Dollar slips lower vs. rivals amid profit-taking
- Forex -Dollar turns lower against yen as investors take profits
- Forex-Aussie, kiwi move higher but gains seen capped
EUR/USD is currently trading with a bullish bias.Yesterday, the pair traded short but could not close below the descending trend line. During this intraday, We expect an upward acceleration but should not close above 1.1396. Ideally, we expect the upper resistive trend line to mark the end of wave (4) but should be the beginning of wave (5). A clear breakout above 1.1396 will push the price further to the upper side but should not go above 1.1438. However, as long as the pair trades within the descending channel, we expect a rally to the lower side. This pair should be traded alongside EUR/GBP, NZD/USD, GBP/USD. These pairs have a strong positive correlation of up to +0.89 and will likely have a similar price action during this intraday.
The pound fell to the day’s lows against the dollar on Wednesday after data showing that U.K. manufacturing output fell at the fastest rate in nearly three years in March, adding to signs that the economy is slowing.GBP/USD touched lows of 1.4389, down from around 1.4421 ahead of the data.The Office for National Statistics reported that manufacturing output in the U.K. fell 1.9% in March from the same month a year earlier, the steepest annual fall since May 2013. The fall was led by a 4% drop in the manufacture of basic metals & metal products, particularly iron and steel.For the month, manufacturing output edged up by 0.1%, missing forecast for a 0.3% increase, after falling 0.9% in February.ndustrial output rose 0.3% in March and was 0.2% lower on a year-over-year basis.The figures did not point towards any revision of the estimate of first quarter economic growth released last month, the ONS said.
- BUY GBP/USD AROUND 1.4395 TARGET 1.4415 1.4445 SL 1.4365
- SELL GBP/USD AROUND 1.4485-1.4483 TARGET 1.4465 1.4435 SL 1.4515