MARKET UPDATES :
- Forex – Dollar rallies to 1-month highs vs. yen on rate hike view
- Forex – Aussie, kiwi slide lower vs. broadly stronger greenback
- Forex- Dollar holds steady at 2-month highs on Yellen remarks
The EUR / USD tested the lower boundary of the rising channel; you can see a rebound there. The RSI on the four-hour chart rebounded from the support level, indicating the growth of the European currency. Thus, the forecast EUR / USD on 31 May 2016 provides the consolidation in the 1.1120 area and the upward movement development. There are attempts of the “bears” to break the ascending channel – the main support is in the 1.1100 area.
The pound was fixed above the level of 1.46, the main purpose for the “bulls” is above the May maximums. The indicator of the RSI is in the neutral zone and is ready to resume growth to the resistance level, which indicates in favor to the quotations growing. The GBP / USD forecast for 31 May 2016 considers the strengthening of the pound, but as the referendum approached the UK’s membership in the European Union, the volatility will increase.
- BUY GBP/USD ABOVE 1.4590 TGT 1.4610 1.4640 SL 1.4560
- SELL GBP/USD BELOW 1.4569 TGT 1.4549 1.4509 SL 1.4599