INTERNATIONAL CURRENCY BUZZ :
- Forex – Dollar slips lower amid stimulus speculation
- Forex -Sterling firm with eyes on new prime minister’s Brexit view
- Forex – Aussie, kiwi move lower amid profit taking
EUR/USD has posted small gains on Wednesday, as the pair continues to drift this week. The pair is trading at 1.1080. It’s another light day on the release front, as the markets look for economic cues for guidance. In the Eurozone, French Final CPI posted a small gain of 0.1 percent, close to the estimate. Eurozone Industrial Production posted a sharp drop of 1.2 percent, below expectations. In the US, today’s highlight is Crude Oil Inventories, with the estimate standing at -2.3 million barrels. On Thursday, the US will release two key events – PPI and Unemployment Claims.
GBPUSD closed above 1.320 resistance yesterday and any dips could be supported above this level now. Establishing a base at 1.32 could see GBPUSD extend its gains towards 1.34 which marks a retest of the resistance level between 1.34 and 1.3420. The falling wedge shows a continuation to the upside with the main target at 1.3677 – 1.380. Extending the gains here could be seen as filling the gap as well as an establishing resistance at this level which could confirm renewed downside in the medium term.
- BUY GBP/USD ABOVE 1.3345 TGT 1.3365 1.3395 SL 1.3315
- SELL GBP/USD BELOW 1.3525 TGT 1.3505 1.3475 SL 1.3555