INTERNATIONAL CURRENCY BUZZ :
- Forex – Sterling falls further in wake of Brexit, euro also weaker
- Forex – Kiwi, Aussie decline vs. greenback, Brexit vote still weighs
- Forex – Pound holds weakness in Asia as Japan, China vow support
EUR/USD is currently trading with a bearish bias. During the previous trading day on 24th June 2016, Euro reacted negatively to Brexit, headed short and and may head further to the lower side. During this intraday, we are very reluctant to go long, instead, we will only be interested in signals giving sell opportunities. This pair should be traded alongside NZD/ USD, AUD/USD, and GBP/USD. These pairs have a strong positive correlation of up to +0.96 and will have a similar price action during this intraday.
The pound came under renewed selling pressure on Monday, falling back towards a 31- year trough after the U.K. voted to leave the European Union on Friday, triggering a massive selloff in global markets.GBP/USD was last down 1.83% at 1.3427, after falling as low as 1.3356 overnight, not far from the lows of 1.3228 set on Friday, the weakest since 1985.U.K. Finance Minister George Osborne said Monday the vote to leave the EU was likely to lead to further volatility in financial markets but claimed that the economy is as strong as it could be to face the challenges ahead.Sterling has tumbled amid fears that the decision could hit investment in the U.K. economy, threaten London’s role as a global financial capital and trigger months of political uncertainty after British Prime Minster David Cameron resigned on Friday.
- BUY GBP/USD ABOVE 1.3480 TGT 1.3500 1.3530 SL 1.3450
- SELL GBP/USD BELOW 1.3220 TGT 1.3200 1.3170 SL 1.3250