MARKET UPDATES :
- Forex – Kiwi, Aussie decline vs. broadly stronger greenback
- Forex – Dollar higher against yen despite upbeat Japan GDP
- Forex- Dollar rises to 3-1/2 week highs with Fed minutes on tap
EUR/USD is currently trading with a bearish bias. Yesterday, the pair broke above the resistance level 1.1324, but ended up closing below it. As previously forecasted, we still expect the pair to form a double bottom at the support level 1.1283. Thus, we expect a clear rebound from this support to go long with our target at 1.1324. A clear breakout below this support will invalidate the anticipated double bottom formation and may lead to an acceleration to the lower side. This pair should be traded alongside GBP/USD, AUD/USD and NZD/USD. These pairs have a strong positive correlation of up to +0.92 and will have a similar price action during this intraday.
The pound was lower against the broadly stronger dollar on Wednesday, shrugging off a solid U.K. jobs report as investors’ reassessed prospects that the Federal Reserve would soon raise interest rates.The Office for National Statistics reported that the claimant count, which measures the number of people receiving unemployment benefit, fell by 2,400 in April, against expectations for an increase of 4,300.March’s claimant count was revised up to 14,700, the biggest monthly increase since September 2011. The U.K. unemployment rate remained stable at 5.1%, in line with economists’ forecasts.The number of people in work rose by 44,000, bringing the employment rate to a record high of 74.2%.
- BUY GBP/USD ABOVE 1.4530 TGT 1.4550 1.4580 SL 1.4500
- SELL GBP/USD AROUND 1.4520-1.4518 TGT 1.4500 1.4470 SL 1.4550