MARKET UPDATES :
- Forex – Aussie tumbles on talk of more interest rate cuts
- Forex – Dollar pushes higher against yen, euro
- Forex- Sterling jumps as Brexit poll shows ‘Remain’ campaign ahead
EUR/USD is currently trading with a slight bullish bias. Yesterday, the pair broke below the rising channel and is currently trading below a very significant support level 1.12177. We expect the just broken support level to act as a resistance to the current upward rally. A clear breakout above 1.12177 will lead to an acceleration to the upper-side but should not go beyond 1.1283, while a clear rebound from this level will lead to a downward rally towards 1.1166. Ideally, the anticipated downward rally should be the continuation of wave (c) but should not close below 1.1160. This pair should be traded alongside AUD/USD, EUR/HKD and NZD/USD. These pairs have a strong positive correlation of up to +0.95 and will likely move in a similar direction during this intraday.
The pound strengthened against the dollar and the euro on Tuesday after a new opinion poll showed the ‘Remain’ campaign with a big lead with one month to go until the referendum on Britain’s European Union membership.GBP/USD was up 0.79% at 1.4599, rebounding from Monday’s lows of 1.4441.The latest ORB poll, published in Tuesday’s Telegraph newspaper, showed that the “Remain’ campaign has a 13-point lead over the ‘Leave’ campaign.support for remaining in the EU stood at 55%, while support for Brexit was at 42%.On Monday, British Prime Minister David Cameron said exiting the EU would be economic self-destruction, as he presented a finance ministry report warning of recession, a sharp fall in the pound and half a million job losses.
- BUY GBP/USD ABOVE 1.4601 TGT 1.4621 1.4651 SL 1.4571
- SELL GBP/USD BELOW 1.4548 TGT 1.4528 1.4498 SL 1.4578